Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. How does an entity adopt IFRSs for the first time?
a. by reporting on its financial position, financial performance and cash flows in accordance with ifrss
b. by issuing its first financial statements in which the entity adopts ifrss, by an explicit and unreserved statement of compliance with ifrss
c. by reporting on its financial position, financial performance and cash flows in accordance with national requirements, which do not contradict ifrss
d. by issuing its first financial statements in accordance with national requirements, which contain explicit and unreserved statement of compliance with ifrss
Q. Which of the following is the starting point for an entity accounting in accordance withIFRSs?
a. the date when the decision about adopting ifrs has been made
b. the date of issuance of the first financial statement in accordance with ifrs
c. the date of transition to ifrss
d. the date when the explicit and unreserved statement of compliance with ifrss has been made
Q. Accounting in India is governed by the
a. rbi
b. company law board
c. income tax department
d. icai
Q. The convergence of the Indian Accounting Standards with IFRS began in
a. april 2010
b. april 2012
c. april 2015
d. april 2000
Q. Ind AS will apply to
a. both consolidated as well as standalone financials of the company
b. only consolidated financials
c. only standalone financials
d. optional
Q. What items of inventories are outside the scope of Ind AS 2?
a. work in progress arising under construction contracts
b. raw materials including maintenance supplies
c. share, debentures held as stock-in-trade
d. machinery spares exclusively used with fixed assets
Q. A provision is
a. a liability of uncertain timing or amount
b. a possible obligation as a result of past events that is of uncertain timing or amount
c. an adjustment to the carrying amount of assets
d. none of these
Q. When Redeemable Preference shares are due for redemption, the entry passed is
a. debit redeemable preference share capital a/c; credit cash a/c
b. debit redeemable preference share capital a/c; credit preference shareholders a/c
c. debit preference shareholders a/c; credit cash a/c
d. debit preference shareholders a/c; credit capital reduction a/c
Q. Which of the following can be utilized for the redemption of preference shares of a companyout of profit:
a. shares forfeited account
b. development rebate reserve account
c. capital redemption reserve account
d. dividend equalization reserve
Q. Which of the following cannot be utilized for the redemption of preference shares of acompany
a. securities premium on fresh issue of shares
b. general reserve
c. profit and loss account
d. dividend equalization reserve
Q. A company cannot issue redeemable preference shares for a period exceeding _________.
a. 6 years
b. 7 years
c. 8 years
d. 20 years