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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Total Questions

Practice Questions

Page 84 of 94
Question #1661
The 'Financial Instruments' (Ind AS 109) classify financial assets into:
A. Amortised cost, Fair value through OCI, Fair value through P&L
B. Only loans and receivables
C. Only equity
D. Only HTM and trading
Discuss
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Correct Answer: Option A

Explanation:
Ind AS 109 classification is based on business model and contractual cash flows.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1662
The 'Hedge Accounting' under Ind AS 109:
A. Only for derivatives
B. Is prohibited
C. Aligns accounting with risk management activities, with three types: fair value, cash flow, net investment
D. Only for foreign exchange
Discuss
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Correct Answer: Option C

Explanation:
Ind AS 109 provides hedge accounting models.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1663
The 'Derecognition of Financial Assets' under Ind AS 109 is based on:
A. Title
B. Legal ownership
C. Possession
D. Transfer of risks and rewards of ownership
Discuss
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Correct Answer: Option D

Explanation:
Derecognition occurs when risks and rewards are substantially transferred.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1664
The 'Expected Credit Loss' for trade receivables:
A. Only when default occurs
B. No impairment
C. Always requires 12-month ECL
D. Can use simplified approach (lifetime ECL) if there is no significant financing component
Discuss
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Correct Answer: Option D

Explanation:
Ind AS 109 allows the simplified approach for trade receivables and contract assets.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1665
The 'Lease Liability' under Ind AS 116 is measured at:
A. Fair value
B. Present value of lease payments not yet paid
C. Cost
D. Undiscounted sum
Discuss
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Correct Answer: Option B

Explanation:
Lease liability is initially measured at present value of future lease payments.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1666
The 'Right-of-Use Asset' under Ind AS 116 is depreciated over:
A. Only useful life
B. 5 years
C. The lease term or the useful life of the asset, whichever is shorter
D. Only lease term
Discuss
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Correct Answer: Option C

Explanation:
If ownership transfers or there is a bargain purchase option, depreciate over useful life; otherwise over the shorter of lease term and useful life.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1667
The 'Revenue from Contracts with Customers' (Ind AS 115) requires identification of performance obligations. A performance obligation is:
A. Only services
B. The contract as a whole
C. Each promise to transfer a distinct good or service (or series)
D. Only goods
Discuss
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Correct Answer: Option C

Explanation:
Distinct goods/services are separate performance obligations.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1668
The 'Transaction Price' under Ind AS 115 includes:
A. Only invoice amount
B. Only cash received
C. Variable consideration, if it is highly probable that a significant reversal will not occur
D. Only fixed consideration
Discuss
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Correct Answer: Option C

Explanation:
Transaction price includes variable consideration to the extent that it is probable there won't be a significant reversal.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1669
The 'Warranty' in a sales contract may be:
A. Always a separate performance obligation
B. Always a provision
C. Not accounted
D. Either assurance-type (no separate obligation) or service-type (separate obligation) depending on whether it provides additional service
Discuss
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Correct Answer: Option D

Explanation:
Ind AS 115 distinguishes between assurance and service warranties.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1670
The 'Principal vs Agent' consideration under Ind AS 115 determines:
A. Discounting
B. Timing of revenue
C. The tax rate
D. Whether revenue is recognised gross or net
Discuss
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Correct Answer: Option D

Explanation:
Principal reports revenue gross; agent reports only commission/fee.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1671
The 'Contract Costs' under Ind AS 115 include:
A. Only material
B. Incremental costs of obtaining a contract and costs to fulfil a contract that are not covered by other standards
C. All costs
D. Only direct labour
Discuss
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Correct Answer: Option B

Explanation:
Incremental costs (like sales commissions) are capitalised if expected to be recovered.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1672
The 'Income Tax (Ind AS 12)' requires deferred tax on:
A. All temporary differences
B. Permanent differences
C. Only timing differences
D. No deferred tax
Discuss
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Correct Answer: Option A

Explanation:
Deferred tax is recognised for temporary differences between carrying amount and tax base.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1673
The 'Deferred Tax Asset' is recognised for deductible temporary differences to the extent that:
A. It is probable that taxable profit will be available against which the deductible temporary differences can be utilised
B. It is certain
C. Always recognised
D. Never recognised
Discuss
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Correct Answer: Option A

Explanation:
Recognition of deferred tax asset requires probability of future taxable profits.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1674
The 'Employee Benefits' (Ind AS 19) includes:
A. Only pension
B. Only gratuity
C. Only wages
D. Short-term benefits, post-employment benefits, other long-term benefits, termination benefits
Discuss
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Correct Answer: Option D

Explanation:
Ind AS 19 covers various types of employee benefits.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1675
The 'Gratuity' is a:
A. Termination benefit
B. Short-term benefit
C. Defined benefit plan
D. Defined contribution plan
Discuss
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Correct Answer: Option C

Explanation:
Gratuity is a defined benefit plan as the employer's obligation is to provide a specific amount.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1676
The 'Actuarial Gains and Losses' on defined benefit plans are recognised in:
A. Balance sheet
B. Profit or loss immediately
C. Deferred over period
D. Other Comprehensive Income (OCI) and not reclassified to profit or loss
Discuss
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Correct Answer: Option D

Explanation:
Ind AS 19 requires actuarial gains/losses to be recognised in OCI.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1677
The 'Borrowing Costs' (Ind AS 23) that are directly attributable to acquisition, construction, or production of a qualifying asset are:
A. Written off over 10 years
B. Capitalised as part of the cost of that asset
C. Ignored
D. Expensed immediately
Discuss
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Correct Answer: Option B

Explanation:
Borrowing costs on qualifying assets are capitalised.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1678
The 'Qualifying Asset' under Ind AS 23 includes:
A. Inventories routinely manufactured in large quantities
B. All intangible assets
C. Assets that take a substantial period of time to get ready for their intended use or sale
D. All fixed assets
Discuss
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Correct Answer: Option C

Explanation:
Qualifying asset requires substantial time to get ready.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1679
The 'Related Party Disclosures' (Ind AS 24) requires disclosure of:
A. Only borrowing
B. Only parent-subsidiary
C. Key management compensation, related party relationships, and transactions
D. Only sales transactions
Discuss
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Correct Answer: Option C

Explanation:
Ind AS 24 requires comprehensive disclosures.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1680
The 'Government Grant' (Ind AS 20) related to income is recognised:
A. As deferred income always
B. In profit or loss on a systematic basis over the periods in which the entity recognises the related costs
C. Immediately as income
D. When received
Discuss
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Correct Answer: Option B

Explanation:
Grants are recognised in P&L over the periods necessary to match them with the related costs.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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