Corporate Accounting MCQS With Answers

6. Whether financial reviews by management, environment reports and value added financialstatements are outside the scope of international financial reporting standards (IFRSs)?

A. yes

B. no

C. not mentioned in ifrs

D. still in consideration

A. yes

7. What is the term used to describe the time between the acquisition of assets for processing andtheir realization in cash or cash equivalents?

A. processing cycle

B. turnover

C. operating cycle

D. turnaround

C. operating cycle

8. Which sections of an annual report do IFRSs apply to?

A. management report

B. financial statements

C. auditors report

D. entire annual report

B. financial statements

9. How many formats are permitted for income and expense items under Ind AS 1?

A. one

B. two

C. three

D. four

B. two

10. Where should extraordinary items appear in an entity’s Statement of Comprehensive Income?

A. other comprehensive income

B. income statement

C. notes

D. nowhere

D. nowhere

 

11. When is offsetting permitted under Ind AS 1?

A. always

B. never

C. when required or permitted under an ifrs

D. when approved by the board of directors

C. when required or permitted under an ifrs

12. Which of the following is not a component of a Statement of Financial Position?

A. non-current assets

B. retained earnings

C. cost of goods sold

D. deferred tax

C. cost of goods sold

13. Which of the following is not a requirement in the financial statements under Ind AS 1?

A. name of the entity

B. chairman’s commentary on performance

C. the accounting period

D. presentation currency

B. chairman’s commentary on performance

14. Under Ind AS 1 how often should financial statements be prepared?

A. at least annually

B. no more than annually

C. as often as the company requires

D. monthly

A. at least annually

15. Correcting the recognition measurement and disclosure of amounts in financial statements asif a prior period error had never occurred. This is:

A. retrospective restatement

B. retrospective application

C. changes in accounting estimate

D. delayed application

A. retrospective restatement

16. Under Ind AS 16 how often the useful life of an asset should be reviewed?

A. at least at each financial year end

B. every six months

C. at management’s discretion

D. never

A. at least at each financial year end