Top 80+ Solved Financial Reporting MCQ Questions Answer
Q. Which of the following is not an example of a potential ordinary share?
a. Standard preference share
b. Convertible preference share
c. Stock warrant
d. Convertible debt
Q. Theoretical ex-rights price (‘TERP’) is calculated when there is a:
a. Bonus issue
b. Right issue
c. Stock split
d. All of these
Q. A biological asset used in agricultural activity whose fair value is readily determinablewithout undue cost or effort is accounted for using:
a. The fair value model.
b. The cost model or the fair value model (an accounting policy choice).
c. The cost model.
d. Any of the above
Q. At the point of harvest an entity measures fruits (agricultural produce) that it picks fromits orchards (biological assets):
a. At fair value.
b. At fair value less costs to sell.
c. At cost.
d. At the lower of cost and estimated selling price less costs to complete and sell.
Q. Two entities are not necessarily related parties if:
a. One entity has significant influence over the other.
b. One entity has control over the other.
c. The entities share joint control over a third entity
d. One entity has joint control over the other.
Q. IAS 24 and Ind AS 24 are deal with……
a. Reporting
b. Joint control
c. Subsidiary
d. Related party
Q. In a land lease, if title does not pass at the end of a lease to the lessee, it is normallytreated as ‘Finance lease’.
a. Statement is true
b. Statement is false
c. Statement is not relevant
d. none
Q. Specific principles, bases, conventions, rules and practices applied in presenting financialstatements, are called,
a. Accounting estimates
b. Accounting policies
c. Prospective application
d. Accounting estimates
Q. Adjustment of the carrying amount of an asset or liability or the consumption of an assetis defined as,
a. A change in the accounting estimate
b. Accounting policies
c. Misstatements
d. Error
Q. Applying a new policy to transaction as if that policy had always been applied. This iscalled,
a. Retrospective restatement
b. Retrospective application
c. Change in accounting estimates
d. None of the above
Q. In selecting an accounting policy, we should review ________,
a. The standard only
b. The interpretation only
c. Framework only
d. All of the above
Q. IAS 8 deals with…..
a. Selection and application of accounting policies
b. Changes in accounting estimates
c. Correction of prior period errors
d. All the above
Q. Which of the following is not a minimum item on the face of the statement ofcomprehensive income?
a. Revenue
b. Finance cost
c. Deferred tax
d. Profit or Loss
Q. Under Ind AS 1, which of the following must be disclosed on the statement of financialposition?
a. Property, Plant and Equipment
b. Biological assets
c. Provisions
d. All of the above
Q. Which of the following is not a requirement for current liabilities?
a. Expected to be settled in entity’s operating cycle
b. Held primarily for trading
c. Expected to be settled within 12 months from the reporting period
d. Entity holds an unconditional right to defer settlement for over 12 months after