Which of the following is a 'Qualifying Asset' for borrowing cost capitalisation under AS 16? MCQ with Answer and Explanation

Question
Which of the following is a 'Qualifying Asset' for borrowing cost capitalisation under AS 16?
A. Inventories routinely manufactured
B. Assets ready for use
C. A power plant under construction
D. Investment property measured at fair value
Answer: Option C
Solution (By JKSSB Mock Tests)
A qualifying asset requires a substantial period to get ready for intended use/sale.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
In the Balance Sheet, 'Patents' are shown under:
A. Investments
B. Current liabilities
C. Current assets
D. Fixed assets – Intangible
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Correct Answer: Option D

Explanation:
Patents are intangible fixed assets.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
A firm's 'Capital' is equal to:
A. Total assets
B. Net assets (Total assets - Outside liabilities)
C. Fixed assets
D. Total liabilities
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Correct Answer: Option B

Explanation:
Capital (owner's equity) = Total assets - Outside liabilities.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Virtual Digital Assets' (VDA) are taxed under Income Tax at:
A. 30% (plus surcharge and cess)
B. Normal slab rates
C. 20%
D. 10%
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Correct Answer: Option A

Explanation:
Income from transfer of VDAs like cryptocurrency is taxed at 30% flat rate.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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