Which of the following is a key feature of 'Ind AS 115' (Revenue from Contracts with Customers)? MCQ with Answer and Explanation

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Which of the following is a key feature of 'Ind AS 115' (Revenue from Contracts with Customers)?

A. Revenue is recognised only on completion

B. Revenue is recognised when invoice is raised

C. Revenue is recognised based on transfer of control

D. Revenue is recognised based on transfer of risks and rewards

Answer: Option C

Solution (By JKSSB Mock Tests)

Ind AS 115 uses the control-based model.

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

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Question #1

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A firm has an Operating Cycle of 15 months. A liability payable in 14 months will be classified as:

A. Current Liability

B. Deferred Tax Liability

C. Non-Current Liability

D. Contingent Liability

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Correct Answer: Option A

Explanation:
According to Schedule III, a liability is current if it is due within 12 months OR within the entity's normal operating cycle (15 months here).

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

Question #2

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The 'Value of Supply' under GST includes:

A. Only the price charged

B. Only cost

C. Price plus any taxes, duties, fees, etc., except GST

D. Only GST

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Correct Answer: Option C

Explanation:
Value includes all amounts charged, including incidental expenses, but excluding CGST/SGST/IGST.

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

Question #3

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Abnormal loss of stock by fire (fully uninsured) is treated by:

A. Crediting Trading A/c and Debiting P&L A/c

B. Only debiting P&L A/c

C. Only crediting Trading A/c

D. Crediting P&L A/c and Debiting Trading A/c

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Correct Answer: Option A

Explanation:
The loss reduces the stock (Credit Trading A/c). Being an uninsured abnormal loss, it is transferred entirely to the debit side of P&L A/c.

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

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