Deck 4: Accounting Terminology and Standards

Question 1

Original cost at which asset or liability is acquired is known as ..

A)Carrying amount
B)Replacement cost
C)Historical cost
D)Purchase price

Answer 1

Historical cost

Question 2

The process of converting foreign subsidiary financial statement into the home currency is known as …

A)Transmission
B)Translation
C)Consolidation
D)Reconstruction

Answer 2

Translation

Question 3

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

Answer 3

A set of principles underpinning financial reporting

Question 4

Present value of expected future cash flows generated by an asset, plus its expected disposal value is called.

A)Value in use
B)Recoverable amount
C)Carrying amount
D)NRV

Question 5

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.

Question 6

When the recoverable amount of an asset is less than its carrying value in the statement of financial position, the asset is said to be

A)Obsolete
B)Value less
C)Impaired
D)Fully depreciated

Question 7

Ind AS 33 deals with

A)Related party disclosure
B)PER
C)Accounting for basic and diluted EPS
D)None of the above

Question 8

……….is the amount of income taxes payable on the taxable profit for a period, in accordance with rules established by the tax authorities

A)Tax expense
B)Tax base
C)Deferred tax
D)Current tax

Question 9

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

Question 10

As per Ind AS 23, assets that require substantial time to bring to their intended use or to salable condition are known as

A)Tangible asset
B)Intangible asset
C)Qualifying asset
D)None of the above

Question 11

IAS 17 does not applies to

A)Biological asset held by lessee under finance leases
B)Biological asset provided by lessor under operating leases
C)Investment property provided by lessor under operating leases
D)All of the above

Question 12

Consideration which varies upon certain future events which may or may not occur is called….

A)Variable consideration
B)Future consideration
C)Agreed price
D)None of these

Question 13

Income tax consists of

A)Domestic taxes that are based on taxable profit
B)Foreign taxes that are based on taxable profit
C)Tax that are payable by a subsidiary on distribution to the reporting entity
D)All of the above

Question 14

Operating lease is :

A)Short term agreement
B)Long term agreement
C)Medium term agreement
D)Any of the above

Question 15

Ind AS 41 deals with

A)Biological assets
B)Accounting for agriculture
C)Interim reporting
D)None of these

Question 16

….. is a financial reporting period shorter than a full financial year

A)Short period
B)A quarter
C)Interim period
D)None of these

Question 17

Land related to agricultural activities is coming under the scope of Ind AS….

A)16
B)36
C)115
D)2

Question 18

A…………. is an operating segment or results from the aggregation of two or more operating segments that meets quantitative thresholds.

A)Joint Venture
B)Associates
C)Reportable segment
D)None of the above

Question 19

Theoretical ex-right price is calculated when there is :

A)Bonus issue
B)Right issue
C)Stock split
D)All of these

Question 20

Activities that result in changes in the size and composition of equity capital and borrowing of an entity are called

A)Operating activity
B)Investment activity
C)Income producing activity
D)Financing activity

Question 21

A statement showing information on increase or decrease in net asset or wealth of an entity is called…

A)Statement of financial position
B)Statement of comprehensive income
C)Cash flow statement
D)Statement of Changes in equity

Question 22

" Deferred tax asset is not a component of statement of financial position"

A)Statement is true
B)Statement is false
C)Statement is not relevant as per IAS1
D)This item is not considered for reporting

Question 23

Omission or misstatement in entity's financial statement for one or more prior period is called

A)Change in accounting estimate
B)Prior period errors
C)Change in accounting policy
D)None of these

Question 24

Amount attributed to the asset or liability for tax purpose is called

A)Carrying amount
B)NRV
C)Depreciation
D)Tax base