S1: Ind AS 115 deals with Revenue from Contracts with Customers. S2: Ind AS 116 deals with Leases. Which statement(s) is/are correct? MCQ with Answer and Explanation

Question

S1: Ind AS 115 deals with Revenue from Contracts with Customers. S2: Ind AS 116 deals with Leases. Which statement(s) is/are correct?

A. Neither S1 nor S2

B. S2 only

C. S1 only

D. Both S1 and S2

Answer: Option D

Solution (By JKSSB Mock Tests)

Ind AS 115 prescribes the principles for recognizing revenue from contracts with customers. Ind AS 116 specifies the accounting for leases. Both statements correctly identify the respective standards.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

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The 'Exploration for and Evaluation of Mineral Resources' is covered by:

A. Ind AS 102

B. Ind AS 16

C. Ind AS 106

D. Ind AS 38

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Correct Answer: Option C

Explanation:
Ind AS 106 deals with extractive industries.

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Question #2

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Expenditure incurred on overhauling a second-hand machinery purchased recently to put it in working condition is:

A. Deferred Revenue Expenditure

B. Loss

C. Capital Expenditure

D. Revenue Expenditure

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Correct Answer: Option C

Explanation:
All costs incurred before a fixed asset is ready for its intended use are capitalized.

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Question #3

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S1: Goodwill is an intangible asset. S2: Goodwill can be self-generated and recorded in the books of accounts. Which statement(s) is/are correct?

A. S1 only

B. Neither S1 nor S2

C. Both S1 and S2

D. S2 only

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Correct Answer: Option A

Explanation:
Goodwill is an intangible asset representing the firm's reputation. However, AS 26 prohibits the recognition of self-generated goodwill in the balance sheet; only purchased goodwill can be recorded. S1 is correct, S2 is incorrect.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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