Top 80+ Solved Financial Reporting MCQ Questions Answer
Q. Which of the following are cash and cash equivalents?
a. Cash in hand
b. Foreign currency in hand
c. Bank balance
d. All of the above
Q. Cash receipts from customers for the sale of goods are cash flows from:
a. Operating activities
b. Investing activities
c. Operating or financing activities
d. Financing activities
Q. Cash payments to acquire the entity’s own shares (ie, treasury shares) are:
a. Cash outflows from operating activities
b. Cash outflows from investing activities
c. Cash outflows from financing activities
d. None of the above
Q. When after the end of the reporting period an event occurs that is indicative of conditionsthat arose after the end of the reporting period:
a. The entity discloses the nature and effect of the event in the financial statements.
b. The entity adjusts the related amounts recognised in the financial statements.
c. Both of the above statements are true.
d. None of the above
Q. Events after the end of the reporting period are defined as:
a. Events, favourable and unfavourable, that, occur between the end of the reporting period and the date of the entity’s next annual financial statements.
b. Events, favourable and unfavourable, that, occur between the end of the reporting period and the date of the entity’s next interim (or annual) financial statements.
c. Events, favourable and unfavourable, that, occur between the end of the reporting period and the date when the financial statements are authorised for issue.
d. None of the above
Q. Original cost at which asset or liability is acquired is known as ..
a. Carrying amount
b. Replacement cost
c. Historical cost
d. Purchase price
Q. The process of converting foreign subsidiary financial statement into the home currencyis known as …
a. Transmission
b. Translation
c. Consolidation
d. Reconstruction
Q. What is conceptual framework for accounting?
a. A set of rules and regulations
b. A set of financial statements
c. Components of financial statements
d. A set of principles underpinning financial reporting
Q. Present value of expected future cash flows generated by an asset, plus its expecteddisposal value is called.
a. Value in use
b. Recoverable amount
c. Carrying amount
d. NRV
Q. Useful life of an intangible asset with finite useful life is reviewed at …
a. Every year
b. At the end of the useful life
c. In case any changes in accounting estimated
d. None of the above.
Q. When the recoverable amount of an asset is less than its carrying value in the statement offinancial position, the asset is said to be
a. Obsolete
b. Value less
c. Impaired
d. Fully depreciated
Q. Ind AS 33 deals with
a. Related party disclosure
b. PER
c. Accounting for basic and diluted EPS
d. None of the above
Q. ……….is the amount of income taxes payable on the taxable profit for a period, inaccordance with rules established by the tax authorities
a. Tax expense
b. Tax base
c. Deferred tax
d. Current tax
Q. Which of the following is not coming under the scope of Ind AS 16
a. Asset classified as held for sale
b. Exploration assets
c. Biological asset related to agricultural activity
d. All the above
Q. As per Ind AS 23, assets that require substantial time to bring to their intended use or tosalable condition are known as
a. Tangible asset
b. Intangible asset
c. Qualifying asset
d. None of the above