Question 1

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

Accepted Answer

Historical cost refers to the original cost at which an asset or liability is acquired, recorded in the financial statements.

Question 2

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

Accepted Answer

Translation is the correct term for the process of converting the financial statements of a foreign subsidiary into the home currency of the parent company. This is necessary for preparing consolidated financial statements.

Question 3

What is conceptual framework for accounting?

Accepted Answer

A conceptual framework for accounting is a set of principles that guide the development of accounting standards and practices, providing a foundation for financial reporting.

Question 4

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

Accepted Answer

Value in use is the present value of the future cash flows expected to be derived from an asset, plus its expected disposal value at the end of its useful life.

Question 5

Useful life of an intangible asset with finite useful life is reviewed at …

Accepted Answer

The useful life of an intangible asset with a finite useful life is reviewed at least annually to determine if there are any changes in the expected pattern of consumption of the future economic benefits.

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

Accepted Answer

When the recoverable amount of an asset is less than its carrying value, the asset is considered to be impaired. This means that the future economic benefits that the asset is expected to generate are less than its current recorded value, necessitating an impairment loss to be recognized in the financial statements.

Question 7

Ind AS 33 deals with

Accepted Answer

Ind AS 33 deals with the accounting for basic and diluted Earnings Per Share (EPS), providing guidelines on how to calculate and present these figures.

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

Accepted Answer

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

Question 9

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

Accepted Answer

Ind AS 16 primarily deals with Property, Plant, and Equipment and does not cover assets classified as held for sale (covered by Ind AS 105), exploration and evaluation assets (covered by Ind AS 106), or biological assets related to agricultural activity (covered by Ind AS 41).

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

Accepted Answer

As per Ind AS 23, assets that require a substantial period of time to get them ready for their intended use or sale are referred to as "Qualifying assets." This includes both tangible and intangible assets that meet the criteria.

Question 11

IAS 17 does not applies to

Accepted Answer

IAS 17 does not apply to biological assets held by lessees under finance leases, biological assets provided by lessors under operating leases, or investment property provided by lessors under operating leases. These are covered by other standards such as IAS 40 for investment property and IAS 41 for biological assets.

Question 12

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

Accepted Answer

Variable consideration is the term used to describe consideration in a contract that can change based on the outcome of future events.

Question 13

Income tax consists of

Accepted Answer

Income tax includes all of the mentioned components: domestic taxes based on taxable profit, foreign taxes based on taxable profit, and taxes payable by a subsidiary on distribution to the reporting entity.

Question 14

Operating lease is :

Accepted Answer

An operating lease is typically a short-term lease agreement where the lessee uses an asset without ownership, often for a period shorter than the asset's useful life.

Question 15

Ind AS 41 deals with

Accepted Answer

The answer of Ind AS 41 deals with
...

Question 16

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

Accepted Answer

An interim period is a financial reporting period that is shorter than a full financial year, often used for reporting quarterly or half-yearly financial performance.

Question 17

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

Accepted Answer

The answer of Land related to agricultural activities is coming...

Question 18

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

Accepted Answer

A reportable segment is defined as an operating segment or the aggregation of two or more operating segments that meets specific quantitative thresholds under accounting standards, making it significant enough to require separate reporting in a company's financial statements.

Question 19

Theoretical ex-right price is calculated when there is :

Accepted Answer

The answer of Theoretical ex-right price is calculated when there...

Question 20

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

Accepted Answer

Activities that result in changes in the size and composition of equity capital and borrowing of an entity are classified as financing activities. This includes transactions such as issuing shares, paying dividends, and borrowing or repaying loans.

Quiz 4: Accounting Terminology and Standards