The 'Investment Property' (Ind AS 40) is measured initially at: MCQ with Answer and Explanation

The 'Investment Property' (Ind AS 40) is measured initially at:
A. Fair value
B. Cost
C. Net realisable value
D. Replacement value
Answer: Option B
Solution (By JKSSB Mock Tests)
Initial measurement is at cost; subsequently either cost model or fair value model.

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Practice More Accountancy and Book Keeping Questions

Question #1
An unearned income is classified as:
A. Expense
B. Asset
C. Income
D. Liability

Correct Answer: Option D


Explanation:
Unearned income (advance received) represents obligation to render service, hence a liability.

Question #2
S1: Cost audit is mandatory for all companies in India. S2: Cost audit is conducted to verify the accuracy of cost records. Which statement(s) is/are correct?
A. Both S1 and S2
B. S1 only
C. Neither S1 nor S2
D. S2 only

Correct Answer: Option D


Explanation:
Cost audit is not mandatory for all companies; it is only required for specific classes of companies (like those in regulated sectors or manufacturing) as prescribed by the Central Government. S2 is correct as it verifies cost records. S1 is incorrect.

Question #3
Which of the following statements about GST is/are correct? 1. It is a destination-based consumption tax. 2. It subsumes all central and state indirect taxes. 3. Petroleum products are presently outside GST. 4. The GST Council is a constitutional body.
A. All of the above
B. 2, 3 and 4
C. 1, 3 and 4
D. 1, 2 and 3

Correct Answer: Option C


Explanation:
Statement 2 is incorrect because some taxes like basic customs duty, stamp duty are not subsumed. 1, 3, 4 are correct.