Question 1

A ______________Accounting signifies the activities related to the conservation of Environment.

Accepted Answer

Environmental Accounting focuses on the costs and benefits of environmental conservation activities and their impact on a company's financial statements. It involves identifying and reporting environmental costs and making decisions that lead to the sustainable use of resources.

Question 2

The main elements of environmental accounting are______________________.

Accepted Answer

Environmental accounting typically involves tracking both the costs related to environmental conservation efforts and the benefits derived from those activities. This includes both direct costs (like pollution control and waste management) and indirect benefits (such as improved health and reduced environmental degradation).

Question 3

What is the classical view of management's social responsibility?

Accepted Answer

The classical view of management's social responsibility is to maximize profit. This perspective holds that the primary responsibility of a business is to its shareholders, and that by focusing on profit maximization, a company best serves its stakeholders and society at large indirectly through economic growth and development.

Question 4

_____________ establishes the principles that an entity applies when reporting information about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer.

Accepted Answer

IFRS 15 establishes the principles for reporting information about the revenue and cash flows that result from contracts with customers. It provides a comprehensive framework for recognizing revenue when or as the entity satisfies a performance obligation.

Question 5

The objective of _________ is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.

Accepted Answer

Ind AS 115, Revenue from Contracts with Customers, is specifically designed to establish the principles for reporting information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer.

Question 6

_________is about the measurement of the items in the consolidated financial statements, such as goodwill, non-controlling interest, etc.

Accepted Answer

IFRS 3 deals with the accounting for business combinations, including the measurement of goodwill and non-controlling interests, which are common items in consolidated financial statements.

Question 7

Goodwill on amalgamation can rise only if ________Method is followed.

Accepted Answer

Goodwill on amalgamation arises only if the Purchase Method is followed. This method involves acquiring another company by purchasing its net assets at their fair values, which often leads to recognizing goodwill if the purchase price exceeds the net identifiable assets acquired.

Question 8

_____________ is the process of significantly changing a company's business model, management team or financial structure to address challenges and increase shareholder value.

Accepted Answer

Corporate restructuring involves significantly changing a company's business model, management team, or financial structure to address challenges and increase shareholder value.

Question 9

A merger of two or more companies that compete in the same industry.

Accepted Answer

A horizontal merger occurs when two or more companies that compete in the same industry combine. This type of merger allows the new entity to have a larger market share within its industry.

Question 10

Merger where two companies are in the same or related industries but do not offer the same products, but related products and may share similar distribution channels, providing synergies for the merger is known as ____________ Merger.

Accepted Answer

A co-generic merger, also known as a concentric merger, involves companies in the same or related industries that do not offer the same products but have related products or services. These companies may benefit from synergies such as shared distribution channels or marketing strategies.

Question 11

A form of corporate restructuring in which the entity's business operations are segregated into one or more components is known as __________________.

Accepted Answer

A demerger is a form of corporate restructuring where a company's operations are split into one or more components, often to streamline operations or to focus on core business areas.

Question 12

When one company takes over the management of the target company with the permission of the board, it is known as ________________ takeover.

Accepted Answer

A friendly takeover occurs when a company acquires another with the approval or cooperation of the target company's board of directors, distinguishing it from a hostile takeover, where the acquisition is made against the wishes of the board.

Question 13

Any agreement between two or more parties to collaborate with each other, in order to achieve certain objectives while continuing to remain independent organizations is called _______________.

Accepted Answer

A strategic alliance is an agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations.

Question 14

________________accounting is the process by which companies and organizations record the financial impact of agreements to rent or finance the rights to use specific assets.

Accepted Answer

Lease accounting is the process by which companies and organizations record the financial impact of agreements to rent or finance the rights to use specific assets.

Question 15

A ______________ is defined as an entity that provides the right to use an asset for a period of time in exchange for consideration.

Accepted Answer

A lessor is the entity that owns an asset and provides the right to use this asset to another party (lessee) for a period of time in exchange for consideration, typically in the form of lease payments.

Question 16

____________ is the estimated remaining period, from the commencement of the lease term, without limitation by the lease term, over which the economic benefits embodied in the asset are expected to be consumed by the entity.

Accepted Answer

Useful life refers to the estimated period over which the economic benefits of an asset are expected to be consumed by the entity, starting from the commencement of the lease term.

Question 17

______________ is a term used in the field of accounting which measures the environmental and natural resources accounting, which tends to incorporate the natural and environmental assets of the firm and it's resources.

Accepted Answer

Green Accounting is the correct term as it specifically refers to the process of accounting that incorporates environmental and natural resources, reflecting a firm's environmental assets and resources.

Question 18

_________ highlights both the contribution of business enterprises to economic wellbeing and the costs imposed in the form of pollution or resource degradation.

Accepted Answer

Environmental Accounting focuses on the economic impact of environmental decisions, including the costs and benefits related to pollution and resource degradation. It aims to incorporate environmental costs and benefits into the financial decision-making process.

Question 19

_______________ is concerned with the development of measurement system to monitor social performance.

Accepted Answer

Social Accounting is focused on measuring and reporting on social performance, including the social impacts of an organization's activities. It aims to account for the social and environmental effects of an organization's operations, in addition to its financial performance.

Question 20

__________ is the method were all assets and liabilities are recorded on a balance sheet according to the cost of replacing them rather than their historical costs.

Accepted Answer

Replacement Cost Accounting is the method where all assets and liabilities are recorded on a balance sheet according to the cost of replacing them rather than their historical costs.

Quiz 2: Business and Accounting Terminology