( Best 50+ ) Accounting Standards MCQ

Accounting Standards MCQ

Table of Contents

Accounting Standards MCQ

Accounting Standards MCQ

1. The global key professional accounting body is

A. The International Accounting Standards Board

B. The Institute of Chartered Accountants of India

C. The Financial accounting standard boa

2. International Public Sector Accounting Standards were issued by

A. International Accounting Standards Board.

B. International Auditing Practices Committee.

C. International Federation of Accountants.

D. None of the above

3. The process of recording financial data up to trial balance is

A. Book keeping

B. Classifying

C. Summarizing

D. Analyzing

4. In which of the following cases, accounting estimates are needed?

A. Employs benefit schemes

B. Impairment of losses

C. Inventory obsolescence

D. All of the above

5. The long term assets that have no physical existence but, possess a value is
known as,

A. Current assets

B. Fixed assets

C. Intangible assets

D. Investments

6. Which of these best explains fixed assets?

A. Are bought to be used in the business.

B. Are expensive items bought for the business

C. Are items which will not wear out quickly

D. Are of long life and are not purchased specifically for resale

7. The assets that can be easily converted into cash within a short period (i.e., 1
year or less is known as,

A. Current assets

B. Fixed assets

C. Intangible assets

D. Investments

8. Which of the following statement is correct?

A. The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only

B. The amount of Goodwill or Capital Reserve is found out in the books of vendor company only.

C. Goodwill = Net Assets – Purchase price

D. The face value of shares of purchasing company will be taken in to account while calculating purchase consideration.

9. Hitesh Ltd.’s purchase consideration is Rs.12,345 and Net Assets Rs.3,568,
then………..

A. Goodwill Rs. 8,777

B. Capital Reserve Rs. 8,777

C. Goodwill Rs. 15,913

D. Capital Reserve Rs. 15,913

10. If the two companies have different accounting policies in respect of the same item, then they make necessary changes to adopt ………….. accounting policies.

A. Same

B. Different

C. Important

D. Some

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