Deck 1: Accounting Standards and Principles: Part A

Question 1

What do you mean by ASB?

A)Accounting Security Board
B)Accounting Standard Board
C)Accounting Standardization Board
D)None of these

Answer 1

Accounting Standard Board

Question 2

IASB was established in the year….

A)1999
B)1977
C)1972
D)2001

Answer 2

1977

Question 3

FASB is based in…………….

A)London
B)Chennai
C)New York
D)Norwalk

Answer 3

Norwalk

Question 4

…………….is the residual interest in the asset of an entity after deducting all liabilities

A)Capital
B)Net Asset
C)Depreciation
D)Equity

Question 5

ASB was set up in India on………………

A)21 April 1977
B)1 April 1977
C)1 January 1976
D)31 March 1978

Question 6

Indian Accounting Standard 3 (AS3) deals with….

A)Amalgamation
B)Lease
C)Cash flow Statement
D)Depreciation Accounting

Question 7

Accounting profession of India is governed by………………….

A)ICAI
B)Ministry of Corporate Affairs
C)Govt. Of India
D)ASB

Question 8

Property, Plant and Equipment are defined as,

A)Tangible assets held for sale in the ordinary course of business
B)Tangible assets held to earn rental or for capital appreciation or both
C)Tangible assets used in the process of production or supply of goods or services or for rental to others
D)None of the above

Question 9

An entity must measure its Property, Plant and Equipment after initial recognition at,

A)Cost
B)Cost less accumulated depreciation and impairment losses if any
C)Cost less accumulated depreciation and impairment losses if any including cost of day to day servicing
D)None of the above

Question 10

Which method depreciation is most appropriate for the entity to compute depreciation for the significant parts of the aircraft?

A)Straight line method for all parts
B)Unit production method based on air miles flown for the jet engines and SLM method for all other parts.
C)Diminishing balance method for all parts
D)None of the above

Question 11

Which of the following asset is not coming under the scope of Ind AS 16?

A)Factory building
B)Sales Van
C)Right to extract fuel from Government owned field
D)All of the above

Question 12

An intangible asset is identified when,

A)It is separable
B)It arises from contractual or other legal rights, regardless whether those rights are transferable or separable from the entity
C)Either (a) or (b)
D)None of these

Question 13

The cost of intangible asset at initial recognition is measured at its fair value when,

A)It is internally generated
B)It is acquired as a part of business combination
C)It is acquired by way of a Government grant
D)Both (b) and (c)

Question 14

The useful life of an intangible asset may be,

A)Finite
B)Infinite
C)Either (a) or (b)
D)None of these

Question 15

Impairment loss is recognised when,

A)Carrying amount of an asset is less than its recoverable amount
B)Carrying amount of an asset is less than its original acquisition cost
C)Carrying amount of an asset exceeds its recoverable amount
D)Fair value of an asset is less than the undiscounted expected future cash inflows

Question 16

An entity assesses inventories for impairment,

A)Only when there are external indicators that, an impairment has occurred
B)At each reporting date
C)Only when there are internal indicators that an impairment has occurred
D)None of these

Question 17

Inventories must be measured at

A)Cost
B)Lower of cost and estimated selling price less cost to complete and sell
C)Lower of cost and fair value less cost to complete and sell
D)None of these

Question 18

Cost of inventory is a sum of

A)Cost of purchase and cost of conversion
B)Direct cost, indirect cost and other cost
C)Cost of purchase, cost of conversion and other cost to bring the material to the present location
D)None of these

Question 19

Consumable stores are

A)Inventories
B)Property, Plant and Equipment
C)Investment Property
D)Intangible Asset

Question 20

Cost of inventory does not include

A)Salary of factory staff
B)Storage cost necessary in the production process
C)Cost of abnormal wastage
D)None refundable taxes

Question 21

A property developer must classify properties that it hold for sale in the ordinary course of business as

A)Inventories
B)Property, Plant and Equipment
C)Financial Assets
D)Investment property