'AS 22' covers: MCQ with Answer and Explanation

'AS 22' covers:
A. Accounting for Taxes on Income
B. Impairment of assets
C. Borrowing costs
D. Earnings per share
Answer: Option A
Solution (By JKSSB Mock Tests)
AS 22 deals with deferred tax and current tax.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Alternate Minimum Tax' (AMT) applies to:
A. Non-corporate taxpayers claiming deductions under certain sections
B. All individuals
C. All companies
D. Foreign companies

Correct Answer: Option A


Explanation:
AMT is for non-corporate assessees having adjusted total income exceeding ₹20 lakhs and claiming specified deductions.

Question #2
Assertion (A): Under Ind AS 38, an intangible asset with an indefinite useful life is not amortized. Reason (R): Its useful life cannot be foreseen, so it is tested for impairment annually under Ind AS 36. Choose the correct option.
A. Both A and R are true and R is the correct explanation of A
B. A is true but R is false
C. A is false but R is true
D. Both A and R are true but R is NOT the correct explanation of A

Correct Answer: Option A


Explanation:
Ind AS 38 states that indefinite-life intangible assets are not amortized because their useful life is not foreseeable. Instead, Ind AS 36 requires them to be tested for impairment annually. R correctly explains A.

Question #3
S1: GST is a comprehensive indirect tax. S2: GST is levied on the manufacture of goods. Which statement(s) is/are correct?
A. S1 only
B. Neither S1 nor S2
C. Both S1 and S2
D. S2 only

Correct Answer: Option A


Explanation:
GST is a comprehensive indirect tax levied on the *supply* of goods and services. It replaced the tax on manufacture (Excise Duty) and tax on sale (VAT). S1 is correct, S2 is incorrect.