S1: Ind AS 109 deals with Financial Instruments. S2: Ind AS 113 deals with Fair Value Measurement. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: Ind AS 109 deals with Financial Instruments. S2: Ind AS 113 deals with Fair Value Measurement. Which statement(s) is/are correct?
A. S1 only
B. Neither S1 nor S2
C. S2 only
D. Both S1 and S2
Answer: Option D
Solution (By JKSSB Mock Tests)
Ind AS 109 prescribes the requirements for the recognition, measurement, impairment, derecognition, and hedge accounting of financial instruments. Ind AS 113 defines fair value and sets out its measurement framework. Both are correct.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is not a subfield of accounting?
A. Social Science Accounting
B. Tax Accounting
C. Management Accounting
D. Financial Accounting

Correct Answer: Option A


Explanation:
Common subfields include financial, cost, management, tax, social responsibility accounting. Social Science Accounting is not a recognized subfield.

Question #2
The 'Economic Order Quantity' (EOQ) model is used to determine:
A. Optimum order size that minimizes total inventory costs
B. Selling price
C. Break-even point
D. Optimum production level

Correct Answer: Option A


Explanation:
EOQ balances ordering costs and carrying costs to minimize total inventory cost.

Question #3
An increase in the value of a fixed asset is credited to:
A. Revaluation Reserve
B. Profit & Loss Account
C. Capital Reserve
D. General Reserve

Correct Answer: Option A


Explanation:
Increase in value on revaluation is credited to Revaluation Reserve, as per AS 10.