Accountancy and Book Keeping MCQs

Accountancy and Statistics

Accountancy and Book Keeping MCQs

Practice the latest Accountancy MCQs with answers and detailed explanations. Explore chapter-wise multiple-choice questions covering important accounting concepts, bookkeeping, financial statements, journal entries, ledger, trial balance, depreciation, ratio analysis, partnership accounts, company accounts, and more. Perfect for Class 11 & 12, B.Com, CA Foundation, CUET, Banking, SSC, JKSSB, JKPSC and competitive exams.

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Practice Questions

Page 36 of 94
Question #701
'Borrowing Costs' eligible for capitalization are determined as per:
A. AS 16
B. AS 9
C. AS 12
D. AS 10
Discuss
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Correct Answer: Option A

Explanation:
AS 16 Borrowing Costs provides guidance on capitalization of borrowing costs on qualifying assets.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #702
'Segment Reporting' is governed by:
A. AS 19
B. AS 18
C. AS 20
D. AS 17
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Correct Answer: Option D

Explanation:
AS 17 requires disclosure of segment-wise information for listed companies and those in the process of listing.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #703
The 'Related Party Disclosures' standard is:
A. AS 18
B. AS 19
C. AS 21
D. AS 17
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Correct Answer: Option A

Explanation:
AS 18 requires disclosure of transactions with related parties.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #704
'Earnings Per Share' is computed under:
A. AS 20
B. AS 19
C. AS 22
D. AS 21
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Correct Answer: Option A

Explanation:
AS 20 prescribes the calculation and presentation of EPS.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #705
'Consolidated Financial Statements' are prepared as per:
A. AS 22
B. AS 21
C. AS 18
D. AS 17
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Correct Answer: Option B

Explanation:
AS 21 deals with consolidation procedures.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #706
'Intangible Assets' are covered by:
A. AS 10
B. AS 28
C. AS 26
D. AS 2
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Correct Answer: Option C

Explanation:
AS 26 deals with recognition, measurement, and disclosure of intangible assets.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #707
The 'Financial Instruments' standard is:
A. Ind AS 2
B. Ind AS 109
C. Ind AS 16
D. Ind AS 115
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Correct Answer: Option B

Explanation:
Ind AS 109 covers classification, measurement, and impairment of financial instruments.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #708
'Revenue from Contracts with Customers' is covered under:
A. AS 9
B. Ind AS 109
C. AS 7
D. Ind AS 115
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Correct Answer: Option D

Explanation:
Ind AS 115 provides a comprehensive framework for revenue recognition.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #709
The 'Expected Credit Loss' model is used in:
A. AS 2
B. AS 9
C. AS 10
D. Ind AS 109
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Correct Answer: Option D

Explanation:
Ind AS 109 introduces expected credit loss for impairment of financial assets.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #710
'Substance over Form' is a concept that means:
A. Legal form prevails
B. Transactions should be accounted for according to their economic reality
C. Transactions should be accounted for based on their legal form
D. Form is more important
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Correct Answer: Option B

Explanation:
Substance over form emphasizes economic substance rather than merely legal form.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #711
The 'True and Fair View' is an overriding requirement of:
A. Tax returns
B. Financial statements
C. GST returns
D. Management accounts
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Correct Answer: Option B

Explanation:
Financial statements must present a true and fair view of the entity's financial position and performance.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #712
The 'International Accounting Standards Board' (IASB) issues:
A. IFRS
B. AS
C. US GAAP
D. Ind AS
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Correct Answer: Option A

Explanation:
IASB is responsible for developing and issuing IFRS.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #713
The 'FASB' is the accounting standard-setting body of:
A. United States
B. India
C. Japan
D. United Kingdom
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Correct Answer: Option A

Explanation:
Financial Accounting Standards Board (FASB) sets US GAAP.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #714
The 'Convergence' of accounting standards means:
A. No change
B. Adopting IFRS as they are
C. Modifying local standards to align with IFRS
D. Keeping different standards
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Correct Answer: Option C

Explanation:
Convergence involves making domestic standards consistent with IFRS, with modifications if necessary.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #715
The 'Institute of Chartered Accountants of India' (ICAI) was established by:
A. SEBI
B. A resolution of Government
C. RBI
D. An Act of Parliament
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Correct Answer: Option D

Explanation:
ICAI was established by the Chartered Accountants Act, 1949.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #716
The 'ICAI' issues:
A. Laws
B. Company rules
C. Accounting Standards (AS) and Ind AS for non-corporate entities
D. Tax rules
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Correct Answer: Option C

Explanation:
ICAI formulates Accounting Standards (AS) and recommends Ind AS, but MCA notifies Ind AS.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #717
Which of the following is not a function of ICAI?
A. Collecting taxes
B. Issuing accounting standards
C. Regulating the profession of chartered accountants
D. Conducting CA examinations
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Correct Answer: Option A

Explanation:
ICAI is a professional body, not a tax collection agency.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #718
The 'Financial Reporting' under Ind AS is applicable to companies as per:
A. ICAI guideline
B. SEBI regulation
C. RBI directive
D. MCA notification
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Correct Answer: Option D

Explanation:
Ministry of Corporate Affairs notifies Ind AS rules.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #719
A 'Shell Company' is a term used for:
A. A listed company
B. A government company
C. A company with no active business or significant assets
D. A company with substantial assets
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Correct Answer: Option C

Explanation:
Shell companies exist mainly on paper with no significant operations or assets, often used for illicit activities.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #720
'Benami Transactions' are prohibited under:
A. Income Tax Act
B. Companies Act
C. GST Act
D. Benami Transactions (Prohibition) Act, 1988
Discuss
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Correct Answer: Option D

Explanation:
Benami property transactions are illegal under the Benami Act.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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