Practice Test

Q1) Accounting Standards (ASs) are written policy documents issued by -
X. Expert accounting body
Y Government
Z Other regulatory body
Select the correct answer from the options given below -
Show Answer

Q2) Accounting standards cover the aspects of accounting transactions in the financial statements. Show Answer

Q3) In India Accounting standards are issued by - Show Answer

Q4) Accounting standards are issued for the purpose of - Show Answer

Q5) The Institute of Chartered Accountants of India (ICAI) constituted the _____, with a view to harmonizing the diverse accounting policies and practices in use in India. Show Answer

Q6) The Institute of Chartered Accountants of India (ICAI) constituted the Accounting Standards Board (ASB) on _, with a view to harmonizing the diverse accounting policies and practices in use in India. Show Answer

Q7) The ICAI so far has issued accounting standards. Show Answer

Q8) Accounting standards are issued for the purpose of -
(a) Improving dependability of financial statements
(b) Auditing work becomes easy task for the auditor
(c) Elimination of non-comparability between financial statements
The correct answer is -
Show Answer

Q9) Accounting standards are - Show Answer

Q10) AS-3 deals with ….. Show Answer

Q11) AS-11 deals with ….. Show Answer

Q12) Refer to the specific accounting principles and the methods of applying those principles adopted by the enterprise in the preparation and presentation of financial statements. Show Answer

Q13) Accounting policies followed by organizations - Show Answer

Q14) When a change in accounting policy is justified? Show Answer

Q15) It is essential to standardize the accounting principles and policies in order to ensure - Show Answer

Q16) Different accounting policies can be adopted in following areas - Show Answer

Q17) The determination of the amount of bad debts is an accounting - Show Answer

Q18) A specific accounting policy refers to - Show Answer

Q19) Accounting policy for inventories of X Ltd. states that inventories are valued at the lower of cost or net realizable value. Which accounting principle in followed in adopting the above policy? Show Answer

Q20) Provisions for doubtful debts, provision for discount on debtors are based on prudence - Show Answer

Q21) Assets should be valued at the price paid to acquire them is based on - Show Answer

Q22) Central Government may, by notification, constitute a National Financial Reporting Authority (NFRA) under _____of the Companies Act, 2013. Show Answer

Q23) AS-8 on Accounting for Research and Development: Show Answer

Q24) AS-2 is on: Show Answer

Q25) Consistency with reference to application of accounting principles refer to the: Show Answer

Q26) Accounting Standards __________ the statue: Show Answer

Q27) The global key professional accounting body is the — Show Answer

Q28) The original cost at which an asset or liability is acquired is known as — Show Answer

Q29) As per AS-11, the process of converting foreign-subsidiary financial statements into the home currency is known as — Show Answer

Q30) As per AS-21, the accounting process in which the financial statements of a parent company and its subsidiaries are added together to yield a unified set of financial statements is called — Show Answer

Q31) The council of ICAI has so far issued _____ accounting standards. However, AS-8 has been withdrawn. Thus, effectively there are _____ accounting standards Show Answer

Q32) Which section of the Companies Act, 2013 provides that the financial statements of every company shall comply with the accounting standards? Show Answer

Q33) In case of charitable trusts and co¬operative societies - Show Answer

Q34) Which of the following is Level-I enterprise? Show Answer

Q35) Which of the following is Level-II enterprise?
I. Listed enterprises outside India.
II. All commercial, industrial and busi¬ness reporting enterprises, whose turnover for the immediately pre¬ceding accounting period exceeds Rs. 50 Crore.
III. Financial institutions
IV. Enterprises carrying on insurance business.
Select the correct answer from the options given below.
Show Answer

Q36) Which aspect of Financial Instruments is death by AS-31? Show Answer

Q37) Which of the following are fundamental accounting assumptions?
A. Going Concern
B. Matching
C. Consistency
D. Dual Aspect
E. Materiality
F. Accrual
Select the correct answer from the options given below:
Show Answer

Q38) Which of the following is Non-SMC as per the Companies (Accounting Standards) Rules? Show Answer

Q39) As per the Companies (Accounting Standards) Rules, an existing company, which was previously Non-SMC and subsequently becomes an SMC, shall not be qualified for exemption or relaxation in respect of Accounting Standards available to an SMC until the company remains an SMC for: Show Answer

Q40) AS-20 deals with: Show Answer

Q41) Which of the following is treated as Potential Equity Share as per AS-20? Show Answer

Q42) If rights and beneficial interest in a property is transferred but documentation and legal formalities are pending then seller & purchaser should record in their accounts as sale & purchase. This the example of - Show Answer

Q43) Which of the following is included in cost of inventory as per AS-2? Show Answer

Q44) Payment of penalties /fines for violation of law should be disclosed separately. It should not be clubbed with "Office Expenses” or "Miscellaneous Expenses”. This the example of - Show Answer

Q45) As per AS-3, unrealized gains and losses arising from changes in foreign exchange rates are - Show Answer

Q46) Provisions for doubtful debts, provision for discount on debtors are based on: Show Answer

Q47) Which of the following required to be disclosed as per AS-1 ? Show Answer

Q48) As per AS-2, inventories should be valued at:
(1) Cost
(2) Net Realizable Value
Select the correct answer from the options given below.
Show Answer

Q49) As per AS-2, the historical cost of inventories should normally be determined by using ….. Show Answer

Q50) As per AS-3, an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, _____ from the date of acquisition. Show Answer

Q51) NRV or net realizable value of inventory is the expected selling price or market value less ….. Show Answer

Q52) AS-6: Depreciation applies to - Show Answer

Q53) Due to which of the following concept inventory is valued at cost or net realizable value, whichever is less? Show Answer

Q54) AS-7: Construction Contracts should be applied in accounting for construction contracts in the financial statements of: Show Answer

Q55) While finalizing the current year profit, the company realized that there was an error in the valuation of closing stock of the previous year. In the previous year, closing stock was overvalued. As a result ….. Show Answer

Q56) As per AS-7: Construction Contracts, an expected loss on the construction contract should be - Show Answer

Q57) Which of the following method of inventory valuation is not recommended by AS-2? Show Answer

Q58) Which of the following is not a method of determining stage of completion of a contract as per AS-7? Show Answer

Q59) If closing stock is overstated ….. Show Answer

Q60) AS-9 is concerned with the recognition of revenue arising in the course of the ordinary activities of the enterprise from: Show Answer

Q61) Which of the following is 'revenue' as per AS-9? Show Answer

Q62) Which of the following statements is correct with respect to inventories? Show Answer

Q63) Revenue from service transactions is usually recognized as the service is performed, by the: Show Answer

Q64) As per AS-9, revenue from interest should be recognized - Show Answer

Q65) AS-13 deals with: Show Answer

Q66) As per AS-13 shares, debentures and other securities held for sale in the ordinary course of business are - Show Answer

Q67) As per AS-13, where, long-term investments are reclassified as current investments, transfers are made at the: Show Answer

Q68) As per AS-13, where investments are reclassified from current to long-term, transfers are made at the - Show Answer

Q69) As per AS-13, if an investment is acquired in exchange for another asset, the acquisition cost of the investment is determined by reference to: Show Answer

Q70) AS-14 deals with Show Answer

Q71) One of the conditions for amalgamation in the nature of merger is that shareholders holding not less than _____ of the face value of the equity shares of the transferor company become equity shareholders of the transferee company by virtue of the amalgamation. Show Answer

Q72) Amalgamation in the Nature of Merger is also known as - Show Answer

Q73) As per amalgamation in the nature of merger method all assets, liabilities, reserves and surplus of the transferor company are incorporated in the financial statements of the transferee company at - Show Answer

Q74) As per amalgamation in the nature of merger method difference between the consideration and share capital of the transferor company is adjusted against: Show Answer

Q75) As per AS-14, to carry forward “Statutory Reserve”, which account is opened as per Amalgamation in the Nature of Purchase? Show Answer

Q76) As per AS-4, events occurring after the balance sheet date are those _____ that occur between the balance sheet date and the date on which the financial statements are approved by appropriate authority. Show Answer

Q77) As per AS-5, prior period items are income or expenses which arise in the current period as a result of _____ in the preparation of the financial statements of one or more prior periods. Show Answer

Q78) X Ltd. purchased goods at the cost of Rs. 40 lakhs in October, 2018. Till March, 2019, 75% of the stocks were sold. The company wants to disclose closing stock at Rs. 10 lakhs. The expected sale value is Rs. 11 lakhs and a commission at 10% on sale is payable to the agent. What is the correct closing stock to be disclosed as at 31.3.2019 as per AS-2?. Show Answer

Q79) On 31.3.2018 a business firm finds that cost of a partly finished unit on that date is Rs. 530. The unit can be finished in 2018-2019 by an additional expenditure of Rs. 310. The finished unit can be sold for Rs. 750 subject to payment of 4% brokerage on selling price. The firm seeks your advice regarding the amount at which the unfinished unit should be valued as at 31.3.2019 for preparation of final accounts? Show Answer

Q80) In process, 100 units of raw materials were introduced at a cost of Rs. 1,000. The other expenditure incurred by the process was Rs. 600. Of the units introduced, 10% are normally lost in the course of manufacturing and they possess a scrap value of Rs. 3 each. The output of Process was only 75 units. Calculate the value of final output. Show Answer

Q81) At year end, the value of inventory' as per physical stock-taking was Rs. 3,25,000. The company’s gross profit on sales has remained constant at 25%. The management of the company suspects that some inventory might have been pilfered by a new employee. What is the estimated cost of missing inventory? Show Answer

Q82) An amount of Rs. 9,90,000 was incurred on a contract work upto 31.3.2018. Certificates have been received to date to the value of Rs. 12,00,000 against which Rs. 10,80,000 has been received in cash. The cost of work done but not certified amounted to Rs. 22,500. It is estimated that by spending an additional amount of Rs. 60,000 the work can be completed in all respects in another two months. Agreed contract price of work is Rs. 12,50,000. Compute a profit to be taken to the P&L A/c as per AS-7. Show Answer

Q83) From the following details determine the expected profit or loss that should be recognized in the accounts for the year.
Contract price = Rs. 12,50,000
Cost incurred till date — Rs. 10,90,000
Cost expected to be incurred to complete the contract = Rs. 3,60,000
Show Answer

Q84) Z Ltd. purchased 10,000 shares of N Ltd. @ Rs. 300. Brokerage @ 2% and stamp duty was 10 paisa per Rs. 100. What is the value of investment as per AS-13? Show Answer

Q85) P Ltd. purchased 10,000 shares of Q Ltd. and issued its 5,000 shares. Nominal value of shares of both P Ltd. & Q Ltd. is Rs. 10. The fair value of shares of P Ltd. & Q Ltd. are Rs. 11.5 & Rs. 12 respectively. Calculate the cost of investment acquired as per AS-13. Show Answer

Q86) N Ltd. acquired certain investment by giving its machinery having WDV Rs. 47,000 and cash Rs. 16,000. Realizable value of machinery was Rs. 20,000. Calculate the cost of investment acquired as per AS-13. Show Answer

Q87) A Ltd. is absorbed by B Ltd., the consideration being the takeover of liabilities, the payment of cost of absorption as part of purchase consideration not exceeding Rs. 20,000, the payment of the 9% Debenture of Rs. 1,00,000 at a premium of 10% to the debenture holders of A Ltd. Equity shareholders of A Ltd. are entitled to Rs. 16 per share in cash and allotment of one 14% Preference Share of Rs. 10 each and 6 equity share of Rs. 10 each fully paid for every 4 share in A Ltd. The numbers of shares of A Ltd. are 2,00,000 of Rs. 10 each fully paid. Purchases consideration as per AS-14 = ? Show Answer

Q88) On 1.1.2019, 7,200 equity shares outstanding in the books of X Ltd.
On 31.5.2019,2,400 shares issued for cash.
1.11.2019, the company made buy back of 1,200 shares.
Net profit for the year ended 31.12.2019 is Rs. 6,30,000.
Basic EPS as per AS-20 = ?
Show Answer

Q89) On 1.1.2019, 10,800 equity shares of Rs. 10 each fully paid-up outstanding in the books of Y Ltd.
On 31.10.2019 the company issued 3,600 shares of Rs. 10 each, Rs. 5 paid-up.
Partly paid shares are entitled to participate in the dividend to the extent of amount paid. Net profit for the year ended 31.12.2019 is Rs. 13,32,000.
Basic EPS as per AS-20 = ?
Show Answer

Q90) Following are the details in respect of JPJ Ltd.
Net profit 2017-2018: Rs. 11,40,000
Net profit 2018-2019: Rs. 22,50,000
No. of equity shares outstanding until 31.12.2018: 5,00,000
Bonus issue on 1.1.2019, one equity share for each equity share outstanding as at 31.12.2018. Calculate (a) Basic EPS for the current year and (b) Adjusted EPS for the last year?
Show Answer

Q91) X Ltd. supplies following information: Net profit for the Year 2018: Rs. 20,00,000 Net profit for the Year 2019: Rs. 30,00,000 No. of shares outstanding prior to right issue: 10,00,000 shares
Right issue: One new share for each four outstanding ie. 2,50,000 shares.
Right issue price: Rs. 20
Last date of exercise rights: 31.3.2019.
Fair value of one equity share immediately prior to exercise of rights on 31.3.2019: Rs. 25 Basic EPS = ?
Show Answer

Q92) Net profit for the year attributable to equity shareholder = Rs. 50,00,000
Number of equity shares outstanding = 10,00,000 ' ’ '
12% Convertible preference shares of Rs. 100 each = 50,000 (Each preference share is convertible into 8 equity shares)
Corporate tax is 30% while dividend distribution tax is 12.5%.
Diluted EPS = ?
Show Answer

Q93) The Accounting Standards are mandatory for: Show Answer

Q94) Accounting Standards refers to specific accounting: Show Answer

Q95) Accounting for Fixed Assets: Show Answer

Q96) Accounting Standards ............. the statute: Show Answer

Q97) IASB stands for: Show Answer

Q98) AS - 8 on Accounting for Research and Development: Show Answer

Q99) The purpose of Accounting Standards is to: Show Answer

Q100) AS 2 is on: Show Answer

Q101) Which of the following provide framework and accounting policies so that the financial statements of different enterprises become comparable? Show Answer

Q102) Consistency with reference to application of accounting principles refer to the Show Answer

Q103) Certain norms, which are followed by accountants while preparing financial statements in order to reduce the vagueness and chances of misunderstanding by harmonizing the varied accounting practices are Show Answer

Q104) All the following are benefits of Accounting Standards except ............. Show Answer

Q105) AS 22 is related with the following: Show Answer

Q106) Which accounting standard is applicable on, provisions contingent liabilities and contingent assets? Show Answer

Q107) The following are the benefits of Accounting Standards except: Show Answer

Q108) An accounting policy may be changed Show Answer

Q109) The aim of issuing accounting standards is Show Answer

Q110) The fair values of Pension plan assets of Milestones Ltd. at the beginning and the end of the year 2007-08 were Rs. 2,80,000 and Rs. 3,08,600 respectively. The employer's contribution to the plan during the year was Rs. 29,000. If benefit payments made to the retirees are Rs. 32,000, the actual return on Pension plan assets for the year will be (as per AS-15): Show Answer

Q111) As per AS-11 exchange differences arising on repayment of fixed asset - linked liabilities should be adjusted to Show Answer

Q112) On 1st December, 2017, Gruh Construction Company Limited undertook a contract to construct a building for Rs. 108 lakhs. On 31st March, 2018 the company found that it had already spent Rs. 83.99 lakhs on the construction. A prudent estimate of additional cost for completion was Rs. 36,01 lakhs. The amount of the provision for foreseeable loss, which must be made in the Final Accounts for the year ended 31st March, 2018 based on AS 7 "Accounting for Construction Contracts" is Show Answer

Q113) PRARTHANA Ltd. is in engineering industry. The company received an actuarial valuation for the first time for its pension scheme which revealed a surplus of Rs. 6 lakhs. It contributes Rs. 5 lakhs annually for its pension schemes. The average remaining life of the employee is estimated to be 6 years. As per AS 15 (Revised) Show Answer

Q114) The fair value of Plan assets of ARIMA LTD. at beginning and end of the year 2011-2012 were Rs. 4,00,000 and Rs. 5,70,000 respectively. The employer's contribution to the plan during the year was Rs. 1,40,000. If benefit payments to retirees were Rs. 1,00,000, what would be the actual return on plan assets (as per AS-15)? Show Answer

Q115) NANDITHA LTD. has imported $ 50,000 worth of goods from CHICAGO TRADERS of USA on 30.2.2012 when exchange rate was Rs. 54.60 per US $. The payment for imports was made on 30.6.2012 when exchange rate was Rs. 55.50 per US $. If the rate of exchange on 31.3.2012 is Rs. 55.00 per US $, the exchange difference to be charged/debited to Profit & Loss Account for the year 2012-13 as per AS-11 will be Show Answer

Q116) Chandra Ltd. purchased a machinery on 01.04.2013 for Rs. 35 Lakhs. Written down value of the machinery as on 31st March, 2017 is Rs. 18.27 Lakhs. The recoverable amount of the machinery is Rs. 12.45 Lakhs. The impairment loss as per AS- 28 will be Show Answer

Q117) As per AS-22, a deferred tax asset should be recognized only if there is a reasonable certainty that sufficient future taxable income will be available and such a conclusion is supported by Show Answer

Q118) Under AS-28, when goodwill and corporate assets cannot be allocated on a reasonable and consistent basis to cash-generating unit, to determine impairment loss. Show Answer

Q119) The objective of AS-1 is Show Answer

Q120) Contingent Assets as per AS-29 are Show Answer

Q121) Under the "Pooling of interest method" the difference between the purchase consideration and Share Capital of the transferee Company should be adjusted to (as per AS-14) Show Answer

Q122) As per AS-11 exchange differences arising on repayment of fixed asset- linked liabilities should be adjusted to Show Answer

Q123) Under AS-26, the normal period of amortisation for an intangible asset other than goodwill is Show Answer

Q124) APEX LTD. has an asset with W.D.V. of Rs. 50 lakh as on 31.03.2009 and its recoverable amount on 31.03.2009 is determined at Rs. 38 lakh. If the tax rate is 30% and carrying amount of the assets for tax purpose is Rs. 42 lakh, what would be Deferred Tax Asset as per AS-22? Show Answer

Q125) FINCORP LTD. holds 25% shares in SUNCORP LTD. at a cost of Rs. 5 lakh as on 31.3.2008, out of SUNCORP LTD.'s share capital and reserve of Rs. 20 lakh each. For the year ended 31.03.2009. SUNCORP LTD., made a profit to Rs. 80,000 and 50% distributed as dividend. What will be the amount of investment (carrying amount) in the Consolidated Financial Statement of FINCORP LTD. as on 31.03.2009. (as per AS-23)? Show Answer

Q126) In accordance with AS-20, if an enterprise has more than one class of equity shares, net profit or loss for the period is to be apportioned are the different classes of shares in accordance with Show Answer

Q127) Shiva Ltd. has obtained an institutional loan of Rs. 60 Crores for machinery on 01.06.2016. The machinery installed on 1st February, 2017 with cost of Rs. 52 Crores and balance loan has been utilized for working capital. Interest on above loan is @ 11% per annum. As per AS-16 the amount of interest to be capitalized for the year ended 31st March, 2017 will be Show Answer

Q128) As per AS-22, justification for method of determining periodic deferred tax is based on the concept of Show Answer

Q129) Which one of the following intangibles should not be recognised as per AS-26? Show Answer

Q130) Which one of the following combination of accounting assumptions are fundarrientals as per AS-1? Show Answer

Q131) On 1.4.2010, RICH LTD. has 5,00,000 shares outstanding. On 1.6.2010, it issued one new share for each Five shares outstanding at Rs. 15. If Fair value of one Equity Share immediately before the right issue is Rs. 21, what would be the theoretical ex-rights fair value per share of RICH LTD.? As Per AS-20. Show Answer

Q132) The fair value of Pension Plan Assets of ROLTA LTD. at the beginning and end of the year 2009-10 were Rs. 3 lakh and Rs. 4.50 lakh respectively. Benefit payment made to retires were Rs. 75,000, what would be the employer's contribution to the Plan during the year, if the actual return on Pension Plan assets are Rs. 97,500? As per AS-15. Show Answer

Q133) STC LTD. had imported raw materials with US$ 1000 on 24.02.2009 when exchange rate was Rs. 46.60 per US$. The payment for imports was made on 15.6.2009 when exchange rate was Rs. 47.50 per US$. If the rate of exchange on 31.3.2009 is Rs. 47.00 per US$, the (Loss)/gain for the financial year 2009-10 will be (as per AS-11) Show Answer

Q134) As per AS-27, when two enterprises jointly control a property, each taking a share of the rents received and bearing a share of the expenses, the joint venture is of the form: Show Answer

Q135) As per AS-22, a deferred asset should be recognised only when there is a certainty of future taxable income to realise in known as Show Answer

Q136) As per AS-14, the type of Amalgamation are Show Answer

Q137) With which the AS-6 is concerned? Show Answer

Q138) GANGOTRI LTD. has provided depreciation as per Accounting records Rs. 4 lakhs and as per Tax records Rs. 7 lakh. Unamortised preliminary expenses, as per tax record is Rs. 5600. There is adequate evidence of future profit efficiency. If the tax rate applicable to the company is 40%, what would be deferred Tax liability as per AS-22. Show Answer

Q139) The fair market values of Pension Plan assets of ASILEENA LTD. at the beginning of year 2009-10 was Rs. 7,00,000. The employer contribution to the plan and Benefit payments made to retirer during the year were Rs. 1,00,000 and Rs. 40,000 respectively. If the actual return on pension Plan assets is Rs. 50,000, what would be the Fair market value of pension plan at end of year 2009-10 (As per-AS-15)? Show Answer

Q140) According to AS-29, Restructuring Cost does not include Show Answer

Q141) As per AS-26 when an intangible asset is required by issue of shares and other securities, the cost of intangible asset should be recorded at: Show Answer

Q142) Under the purchase method of accounting the transferee company incorporates into its books (As per AS-14): Show Answer

Q143) PRARTHANA LTD., a firm of contractors provides the following details for the year ended 31st March, 2011: Total Contract Price 11,000 lakhs, Work Certified Rs. 500 lakhs, Work not Certified Rs. 105 lakhs. Estimated further Cost to Completion Rs. 495 lakhs, Progress Payment: Received Rs. 400 lakhs. To be Received Rs. 140 lakhs. Amount due to customers as per AS -7 will be: Show Answer

Q144) According to AS-11 (Revised) the difference between the forward rate and the exchange rate at the date of transaction should be Show Answer

Q145) As per AS-3 (Revised) Interest and Dividends received in the case of a manufacturing enterprise should be classified as cash flow from Show Answer

Q146) M.S. GOYAL & A. JINDAL LTD. provides the following information: Accounting Profit Rs. 6,00,000, Book Profit as per MAT Rs. 3,50,000, Profit as per Income Tax Act Rs. 60,000, Tax Rate 20%, MAT Rate 7.50%. Deferred Tax Asset/Liability as per AS-22 will be: Show Answer

Q147) Accountants of NAVEEN ND Ltd. show a net profit of Rs. 7,20,000 for the third quarter of 2011 after incorporating the following:
(i) Bad debts of Rs. 40,000 incurred during the quarter. 50% of the bad debts have been deferred to the next quarter.
(ii) Extra ordinary loss of Rs. 35,000 incurred during the quarter has been fully recognized in this quarter.
(iii) Additional depreciation of Rs. 45,000 resulting from the change in the method of charge of depreciation.
The Correct Quarterly Income as per AS-25 is: Show Answer

Q148) RAJASTHALI Ltd. ordered 16,000 kg. of certain material at Rs. 160 per unit. The purchase price includes excise duty Rs. 10 per kg. in respect of which full CENVAT credit admissible. Freight incurred amounted to Rs. 1,40,160. Normal transit loss is 2%. The company actually received 15,500 kg. and consumed 13,600 kg. of material. The cost of inventory as per AS 2 will be Show Answer

Q149) BANSAL & JINDAL CONSTRUCTION Co. Ltd. undertook a contract on 1st January, 2011 to construct a building for Rs. 80 lakhs. The company found on 31st March, 2011 that it had already spent Rs. 58,50,000 on the construction. Prudent estimate of additional cost for completion was Rs. 31,50,000. Contract Value to be recognized as turnover in the final accounts for the year ended 31st March, 2011 as per AS 7 (revised) will be Show Answer

Q150) Moon Ltd. entered into agreement with Sun Ltd. for sale of goods of Rs. 8 lakhs as a profit of 20% on cost. The sale transaction took place on 1st February, 2011. On the same day Sun Ltd. entered into another agreement with Moon Ltd. to resell the same goods at Rs. 10.80 lakhs on 1st August, 2011. The pre-determined reselling price covers the holding cost of Sun Ltd. Treatment as per AS 9 in the books of Moon Ltd. Show Answer

Q151) PRARTFIANA Ltd. is in engineering industry. The company received an actuarial valuation for the first time for its pension scheme which revealed a surplus of Rs. 6 lakhs. It contributes Rs. 5 lakhs annually for its pension schemes. The average remaining life of the employee is estimated to be 6 years. As per AS 15 (Revised) Show Answer

Q152) M/s. XYZ Ltd. has three segments namely X, Y, Z. The total assets of the Company are: Segment X Rs. 1.00 crore, Segment Y Rs. 3.00 crores and Segment Z Rs. 6.00 crores. Deferred tax assets included in the assets of each Segments are: X Rs. 0.50 crore, Y Rs. 0.40 crore and Z Rs. 0.30 crore. As per AS 17 Show Answer

Q153) NIKITA Limited wishes to obtain a machine costing Rs. 30 lakhs by way of lease. The effective life of the machine is 15 years, but the company requires it only for the first 5 years. It enters into an agreement with Ashok Ltd., for a lease rental for Rs. 3 lakhs p.a. payable in arrears and the implicit rate of interest is 15%. Treatment as per AS 19 in the books of Lessee Show Answer

Q154) RAKESH BEHARI Lid. has provided the following information: Depreciation as per accounting records Rs. 2,00,000, Depreciation as per income tax records Rs. 5,00,000, Unamortized preliminary expenses as per income tax records Rs. 30,000, Tax rate 50%. There is adequate evidence of future profit sufficiency. As per AS 22 Deferred Tax Asset/Liability to be recognized will be Show Answer

Q155) Mr. Rajiv Gupta, CEO of Indraprastha Co-operative Bank reports quarterly and estimates an annual income of Rs. 100 crores. Assume tax rates on first Rs. 50 crores at 30% and on the balance income at 40%. The estimated quarterly incomes are Rs. 7.5 crores, Rs. 25 crores, Rs. 37.5 crores and Rs. 30 crores. The tax expense to be recognized in last quarter as per AS 25 is Show Answer

Q156) S. S. CORPORATE SECURITIES Ltd. is showing an intangible asset at Rs. 72 lakhs as on 01.04.2011 and that item was acquired for Rs. 96 lakhs on 01.04.2008 and that item was available for use from that date. It has been following the policy of amortization of the intangible asset over a period of 12 years on straight line basis. As per AS 26 Show Answer

Q157) An asset of PELF FINSTOCK Ltd. does not meet the requirements of environment laws which have been recently enacted. The asset has to be destroyed as per the law. The asset is carried in the Balance Sheet - at the year end at Rs. 6,00,000. The estimated cost of destroying the asset is Rs. 70,000. Impairment Loss to be recognized as an expense immediately in the Statement of Profit and Loss as per AS 28 is Show Answer

Q158) X Ltd. holds 51 % of Y Ltd., Y Ltd. holds 51 % of W Ltd., Z Ltd. holds 49% of W. Ltd. As per AS 18, Related Parties are: Show Answer

Q159) As per records of NAVEEN ND Ltd. Accounting Profit Rs. 12,00,000, Book Profit as per MAT Rs. 7,00,000, Profit as per Income Tax Act Rs. 1,20,000, Tax Rate 20%, MAT Rate 7.50%. As per AS 22, Deferred Tax Asset/Liability will be: Show Answer

Q160) As per records of PELF FIN STOCK Ltd. Net Profit for the current year Rs. 199.20 lakhs, No. of Equity Shares outstanding 100 lakhs, No. of 12% Convertible Debentures of Rs. 100 each 2 lakhs, Each Debenture is convertible into 10 equity shares, Tax Rate 30%, As per AS 20, Diluted Earnings Per Share is: Show Answer

Q161) Accountants of M. K. SHARDA Ltd. show a Net Profit of Rs. 14,40,000 for the third quarter of 2011 after incorporating the following:
(i) Bad debts of Rs. 80,000 incurred during the quarter. 50% of the bad debts have been deferred to the next quarter.
(ii) Extra ordinary loss of Rs. 70,000 incurred during the quarter has been fully recognized in this quarter.
(iii) Additional depreciation of Rs. 90,000 resulting from the change in the method of charge of depreciation.
As per AS 25, the Correct Quarterly Income is: Show Answer

Q162) SRIJAN Ltd. wishes to obtain a machine costing Rs. 60 lakhs by way of lease. The effective life of the machine is 15 years, but the company requires it only for the first 5 years. It enters into an agreement with Ashok Ltd., for a lease rental for Rs. 6 lakhs p.a. payable in arrears and the implicit rate of interest is 15%. As per AS 19, what should be recognized as an expense in the Statement of Profit and Loss in the books of Lessee: Show Answer

Q163) SOFTEX LTD. is having a plant (asset), carrying amount of which is Rs. 40 lakh on March 31,2012. Its balance useful life is 3 years and residual value at the end of 3 years is Rs. 3 lakh. Estimated future cash flow from using the plant will be Rs. 10 lakh per annum for 3 years. If the discount rate is 10% "the Value in Use" for the plant as per AS-28 will be [Given : PVIFA (10%, 3 yrs) = 2.487 and PVIF (10%, 3 yrs) = 0.7513] Show Answer

Q164) HILL LTD. has provided depreciation in accounts for Rs. 80 lakhs, but as per tax records it is Rs. 120 lakhs. Unamortized preliminary expenses, as per tax records is Rs. 40,000. There is adequate evidence of future Profit sufficiently. Tax rate is 30%. How much deferred tax assets/liability should be recognized as per AS-22? Show Answer

Q165) AKASH LTD. set up a new factory in the backward area and purchased Plant for Rs. 500 lakhs for the purpose. Purchases were entitled for CENVAT credit of Rs. 10 lakhs and Government also agreed to extend 25% subsidy for backward area development. Determine the depreciable value of the asset. Show Answer

Q166) As per AS-10 Fixed Assets that have been retired from active use and held for disposal should be stated in Balance Sheet at Show Answer

Q167) Under AS-26, brand generating costs Show Answer

Q168) As per AS-22, a Deferred tax Asset should be recognized only when there is certainty of future taxable income to realize. This is based on the consideration of Show Answer

Q169) SMITH LTD. had 1000000 equity shares outstanding on April 01, 2012. The average fair value per share during the year 2012-13 was Rs. 50. The Company has given share option to its employees of 2,00,000 shares at option price of Rs. 40. If net profit attributable to equity shareholders for the year ended March 31, 2013 is Rs. 21 lakh, what would be DILUTED EPS as per AS-20? Show Answer

Q170) VASUDA CONSTRUCTION LTD. undertook a contract on. January 1, 2013 to construct a building for Rs. 70 lakh. The Company found on March 31, 2013 that it had already spent Rs. 52 lakh on the construction. Prudent estimate of additional cost for completion was Rs. 28 lakh. Contract value to be recognized as Turnover in the final accounts for the year ended March 31, 2013 as per AS-7 (revised) will be Show Answer

Q171) The fair values of Pension Plan Assets of ZOOM LTD. at the beginning and end of the year 2012-13 were Rs. 5,60,000 and Rs. 6,20,000 respectively. The actual return on Pension Plan Assets for the year was Rs. 63,000. If benefit payments made to the retirees are Rs. 64,000, the employer's contribution to the plan during the year as per AS-15 would be Show Answer

Q172) MS. DEEPASHREE purchased 1000 shares in SPECTRUM LTD. at Rs. 600 per share in 2010. There was a rights issue in 2013 at one share for every two held at price of Rs. 150 per share. If Ms. Deepashree subscribed to the rights, what would be carrying cost of 1,500 shares as per AS-13. Show Answer

Q173) SWIFT LTD. has-an asset, which is carried in the Balance Sheet on 31.3.2013 at Rs. 600 lakh. As at that date value in USE is Rs. 400 lakh. If the net selling price is Rs. 450 lakh, Impairment loss of the Asset as per AS-28 will be Show Answer

Q174) PARTHAN LTD. reports quarterly and estimates an annual income of Rs. 200 crores. Assume Tax rates on first Rs. 100 crores at 30% and on the balance income at 40%. The estimated quarterly incomes are Rs. 15 crores, Rs. 50 crores, Rs. 75 crores and Rs. 60 crores respectively. The Tax expenses to be recognized in the last quarter as per AS-25 is Show Answer

Q175) BHARAT LTD. bought a forward contract for three months of US $ 150000 on 1st March, 2013 at 1 US $ = Rs. 54.10 when exchange rate was 1 US $ = Rs. 54.12. On 31st March, 2013 when the books were closed forward exchange rate for two months was US $ 1 = Rs. 54.16. On 30th April, 2013 the contract was sold at Rs. 54.20 per US Dollar. As per AS-30 the profits from sale of contract to be recognized in the Profit & Loss A/c will be Show Answer

Q176) The Accounting Standards Board was constituted by the Institute of Chartered Accountants of India in the year: Show Answer

Q177) Which of following Section of Companies Act, 2013, is required that the auditor has to report whether in his opinion the financial statements comply with the Accounting Standards referred in Section 133 of the Companies Act, 2013: Show Answer

Q178) Which of the following is not included in the conditions satisfied by the small and medium companies (SMCS) with reference to applicability of Accounting Standards? Show Answer

Q179) Which of the following International Accounting Standard (IAS) is related to Earning per share'? Show Answer

Q180) Which of the following is a Small and Medium Sized Company (SMC) as per the Companies (Accounting Standards) Rules, 2006: Show Answer

Q181) AS 3 and AS 17 are not applicable in their entirety to: Show Answer

Q182) AS 18 and AS 24 are not applicable in their entirety to:
Show Answer

Q183) AS-7 issued by ICAI deals with Show Answer

Q184) GAAP stands for: Show Answer

Q185) X Ltd. has 5,000 AC in stock on 31st March, 2019. The cost of each AC amount to 10,000. There is firm commitment of sale of 1,000 AC by the company in April, 2019 @ 15,000 per AC. However, the general price of this AC at year end amounts to 9,500 per AC. Calculate the Value of Closing Stock as per AS-2. Show Answer

Q186) AS-11 issued by ICAI deals with Show Answer

Q187) Ravi Ltd. purchased goods at the cost of 40 lakh in October 2019. Till March 2020, 75% of the stocks were sold. The Company wants to disclose closing stock at 10 lakh. The expected sale value is 11 lakh and a commission at 10% on sale is payable to the agent. What is the correct closing stock to be disclosed as at 31.3.2020 as per AS-2? Show Answer

Q188) Ind. AS-2 provides for reversal of the write down of inventories to:
Show Answer

Q189) Declared dividend must be paid within _____ of declaration. Show Answer

Q190) As per IFRS disclosure to be made in only consolidated
financial of the parent company for: Show Answer

Q191) X Ltd. purchased goods at the cost of 60 lakh in November, 2020. Till March, 2021, 75% of the stock was sold. The company wants to disclose stock at 15 lakh. The expected sale value is 16.50 lakh and a commission at 10% on sale value is payable to the agent. What is the correct closing stock to be disclosed as at 31st March, 2021 as per AS-2 ? Show Answer

Q192) AS-7 issued by the ICAI deals with _____ Show Answer

Q193) Which of the following Section of the Companies Act, 2013, requires that the auditor has to report whether in his opinion the financial statements comply with the Accounting Standards referred in Section 133 of the Companies Act, 2013: Show Answer