The 'Asset Ceiling' in defined benefit plans under Ind AS 19 refers to: MCQ with Answer and Explanation

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The 'Asset Ceiling' in defined benefit plans under Ind AS 19 refers to:

A. Limit on the amount of surplus that can be recognised as an asset (present value of refunds/reductions in future contributions)

B. Only for gratuity

C. No limit

D. Maximum plan assets

Answer: Option A

Solution (By JKSSB Mock Tests)

Ind AS 19 restricts the recognised asset to the economic benefits available.

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

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In 'Job Costing', costs are accumulated for:

A. Each department

B. Entire factory

C. Fixed assets

D. Each batch or specific order

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Correct Answer: Option D

Explanation:
Job costing collects costs for each job or order, useful in custom manufacturing.

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Question #2

A 'Shell Company' is a term used for:

A. A government company

B. A listed 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.

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Question #3

The concept of 'Cost of Capital' is primarily used to evaluate:

A. Dividend declarations

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C. Inventory turnover

D. Working capital adequacy

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Correct Answer: Option B

Explanation:
Cost of capital serves as the discount rate or hurdle rate for evaluating long-term investment opportunities (capital budgeting).

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

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