The 'Derecognition of Financial Assets' under Ind AS 109 is based on: MCQ with Answer and Explanation

Question

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The 'Derecognition of Financial Assets' under Ind AS 109 is based on:

A. Legal ownership

B. Transfer of risks and rewards of ownership

C. Title

D. Possession

Answer: Option B

Solution (By JKSSB Mock Tests)

Derecognition occurs when risks and rewards are substantially transferred.

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

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Question #1

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In 'Reconciliation of Cost and Financial Accounts', which item is added to financial profit to arrive at costing profit?

A. Depreciation overcharged in cost accounts

B. Notional interest credited in cost accounts

C. Dividend received recorded in financial accounts

D. Under-absorption of overheads in cost accounts

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Correct Answer: Option B

Explanation:
Notional expenses (like interest on own capital) appear in cost accounts but not in financial accounts. So if costing profit is lower, we add it back to financial profit to reconcile.

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Question #2

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The 'Surcharge' on income tax is levied for:

A. Companies only

B. Senior citizens only

C. High-income individuals/entities

D. All taxpayers

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Correct Answer: Option C

Explanation:
Surcharge is additional tax on income above specified thresholds for individuals, HUFs, companies.

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Question #3

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The 'Accounting Voucher' is prepared on the basis of:

A. Trial balance

B. Ledger accounts

C. Supporting vouchers

D. Final accounts

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Correct Answer: Option C

Explanation:
Accounting vouchers (debit/credit/transfer) are prepared from source documents.

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

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