The 'Government Grant' (Ind AS 20) related to income is recognised: MCQ with Answer and Explanation

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The 'Government Grant' (Ind AS 20) related to income is recognised:

A. As deferred income always

B. Immediately as income

C. In profit or loss on a systematic basis over the periods in which the entity recognises the related costs

D. When received

Answer: Option C

Solution (By JKSSB Mock Tests)

Grants are recognised in P&L over the periods necessary to match them with the related costs.

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

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Question #1

The 'GST Annual Return' GSTR-9 is required for:

A. All registered persons

B. Regular taxpayers (not composition dealers, not ISD, etc.)

C. Composition dealers

D. Input service distributors

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Correct Answer: Option B

Explanation:
GSTR-9 is filed by normal taxpayers; composition taxpayers file GSTR-4 annually.

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Question #2

In 'Piecemeal Distribution' during dissolution, the first priority for payment of outside liabilities is:

A. Partners' capital balances

B. Partners' loans

C. Secured creditors up to the value of security

D. Unsecured trade creditors

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Correct Answer: Option C

Explanation:
Secured creditors have the first right over the assets they hold as security. Any remaining dues become unsecured.

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Question #3

A 'Cash Generating Unit' is defined under:

A. AS 2 Inventories

B. AS 14 Amalgamation

C. AS 28 Impairment of Assets

D. AS 10 Fixed Assets

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Correct Answer: Option C

Explanation:
CGU is a concept used in impairment testing under AS 28.

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

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