Under AS 12, government grants related to depreciable assets are generally: MCQ with Answer and Explanation

Question

Share Report Error

Under AS 12, government grants related to depreciable assets are generally:

A. Ignored

B. Deducted from the cost of the asset or treated as deferred income

C. Added to capital

D. Recognised as income immediately

Answer: Option B

Solution (By JKSSB Mock Tests)

AS 12 permits either reducing the cost of asset or treating grant as deferred income.

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

Request complete Subject PDF

Discuss this Question (0)

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

Practice More Accountancy and Book Keeping Questions

Question #1

The 'Labour Turnover' rate measures:

A. Overtime

B. Rate of change in labour force

C. Efficiency of workers

D. Absenteeism

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Labour turnover indicates the frequency of employees leaving and being replaced.

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

Question #2

The journal entry for goods withdrawn by the proprietor for personal use is:

A. Capital A/c Dr. To Purchases A/c

B. Purchases A/c Dr. To Drawings A/c

C. Drawings A/c Dr. To Sales A/c

D. Drawings A/c Dr. To Purchases A/c

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Goods taken for personal use reduce drawings and reduce purchases (or stock). Correct entry: Drawings A/c Dr. To Purchases A/c.

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

Question #3

The 'Voucher Number' should be:

A. Sequential and unique

B. Same for all

C. Random

D. Date-based

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Vouchers should be numbered serially for control and easy reference.

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

Explore All Accountancy and Book Keeping MCQs