MCQs on Accounting Standards in Corporate Accounting

 MCQs on Accounting Standards in Corporate Accounting

1. Change in accounting estimate is __________

A. Prior Period Item

B. Change in accounting policy

C. Extra-ordinary item

D. Ordinary item

B. Change in accounting policy

2. Indian accounting standards are the International financial reporting standards converged standards issued by the central government of India under the supervision and control of accounting standards board of ICAI and in consultation with __________.

A. Ministry of corporate affairs

B. NFRA

C. Accounting Standards Board

D. All of the above

B. NFRA

3. Preparation of consolidated Balance Sheet of Holding Co. and its subsidiarycompany as per

A. As 11

B. AS – 22

C. AS 21

D. AS – 23

A. As 11

4. The share of outsiders in the Net Assets in the subsidiary company is known as under :

A. Assets

B. subsidiary company's liability

C. Minority Interest

D. outsiders liability

D. outsiders liability

5. Pre-acquisition profit in subsidiary company is considered as:

A. Revenue profit

B. Capital profit

C. Goodwill

D. Non of the above

B. Capital profit

6. Excess of paid up value of the shares over cost of investment is considered as:

A. Goodwill

B. Capital Reserve

C. Minority Interest

D. Non of above

A. Goodwill

7. Profit earned after acquisition of share is treated as

A. Capital profit

B. Revenue profit

C. General Reserve

D. Revaluation Loss

A. Capital profit

8. Preparation of consolidated statement as per AS 21 is

A. Optional

B. Mandatory for listed Companies

C. Mandatory for Pvt. L

B. Mandatory for listed Companies

9. Holding Co. share in revenue profits of subsidiary company is adjusted in :

A. Cost of control

B. Shown on Assets side of Balance sheet

C. Profit and loss account

D. None of above

C. Profit and loss account

10. Unrealized profit on goods sold and included in stock is deducted from :

A. Capital Profit

B. Revenue Profit

C. Fixed Assets

D. Minority interest

B. Revenue Profit

11. Face value debentures of subsidiary co. held by Holding Company is deducted from

A. Debentures

B. Cost of control

C. Minority interest

D. Debentures in consolidated balance sheet

B. Cost of control

12. Which of the following statement is true:

A. There is no change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit.

B. There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of post-acquisition profit.

C. There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit.

D. There is no connection between the issue of bonus shares and the calculation of capital reserve.

A. There is no change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit.

13. Minority Interest includes :

A. Share in share capital

B. Share in Capital profit

C. Share in Revenue profit

D. All of the above

D. All of the above

14. The Time interval between the date of acquisition of shares in subsidiary company and date of Balance Sheet of Holding Company is known as :

A. Pre-acquisition period

B. Post-acquisition period

C. Pre-commencement period

D. Pre-incorporation period

B. Post-acquisition period

15. Pre-acquisition dividend received by Holding company is credited to

A. Profit & loss A/c

B. Capital profit

C. Investment A/c

D. Non of the above

C. Investment A/c

16. Post Acquisition dividend received by Holding Company is debited to :

A. Bank A/c

B. profit & loss A/c

C. Dividend A/c

D. Investment A/c

B. profit & loss A/c

17. Which Exchange rate will be considered for conversion of share capital of subsidiarycompany.

A. Opening Rate

B. Closing rate

C. Average Rate

D. Rate of which date share acquired (actual)

D. Rate of which date share acquired (actual)

18. A subsidiary company shall be excluded from consolidation when:

A. Control is intended to be temporary

B. It operates under severe long-term restrictions which significantly impair its ability to transfer funds to the parent

C. Always included for consolidation

D. Both a and b.

D. Both a and b.