The 'Convergence' of accounting standards means: MCQ with Answer and Explanation

The 'Convergence' of accounting standards means:
A. Keeping different standards
B. Adopting IFRS as they are
C. No change
D. Modifying local standards to align with IFRS
Answer: Option D
Solution (By JKSSB Mock Tests)
Convergence involves making domestic standards consistent with IFRS, with modifications if necessary.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Ind AS 24' on Related Party Disclosures requires disclosure of:
A. Only parent-subsidiary relationships
B. Only transactions with key management personnel
C. Relationships, transactions, and outstanding balances with related parties
D. Only compensation of key management personnel

Correct Answer: Option C


Explanation:
Ind AS 24 requires disclosure of related party relationships, transactions, and balances.

Question #2
A company has an operating cycle of 90 days. Its average daily cash outflow is ₹2,00,000. It maintains a minimum cash balance of 10% of its cash outflow during the operating cycle. What is the minimum cash balance it should maintain?
A. ₹1,62,00,000
B. ₹18,000
C. ₹18,00,000
D. ₹1,80,000

Correct Answer: Option C


Explanation:
Total cash outflow during the operating cycle = 90 days * ₹2,00,000 = ₹1,80,00,000. Minimum cash balance = 10% of ₹1,80,00,000 = ₹18,00,000.

Question #3
The 'Basic Customs Duty' is levied under:
A. Customs Tariff Act, 1975
B. Income Tax Act
C. Finance Act
D. GST Act

Correct Answer: Option A


Explanation:
Basic customs duty is imposed under Customs Tariff Act.