The 'Business Combinations' (Ind AS 103) require acquisition method. It involves: MCQ with Answer and Explanation

The 'Business Combinations' (Ind AS 103) require acquisition method. It involves:
A. Only merger accounting
B. No goodwill
C. Identifying acquirer, determining acquisition date, recognising and measuring identifiable assets, liabilities, and non-controlling interest, and recognising goodwill or bargain purchase
D. Pooling of interests
Answer: Option C
Solution (By JKSSB Mock Tests)
Ind AS 103 mandates the acquisition method for business combinations.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
When starting a BRS with a debit balance as per the Cash Book, cheques issued but not yet presented for payment should be:
A. Deducted
B. Ignored
C. Added
D. Divided

Correct Answer: Option C


Explanation:
These cheques decreased the cash book balance but not the pass book. To match the pass book, they must be added back.

Question #2
In the context of PFMS, what does 'Aadhaar Payment Bridge System' (APBS) facilitate?
A. Tax collection
B. Direct Benefit Transfer using Aadhaar
C. Bank auditing
D. Stock market trading

Correct Answer: Option B


Explanation:
APBS facilitates Direct Benefit Transfers (DBT) by using the Aadhaar number as the central key for routing government subsidies to beneficiaries.

Question #3
The cost of a machine is ₹1,00,000, scrap value ₹10,000, useful life 10 years. Annual depreciation under straight-line method:
A. ₹9,000
B. ₹10,000
C. ₹11,000
D. ₹1,000

Correct Answer: Option A


Explanation:
Depreciation = (Cost - Scrap) / Life = (1,00,000 - 10,000) / 10 = ₹9,000.