Multiple choice

AS 7 deals with accounting for

  1. construction contracts

  2. research and development

  3. government grants

  4. investments
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A Correct answer
Explanation

AS 7 deals with accounting for construction contracts in the financial statements of enterprises undertaking such contracts (hereafter referred to as 'contractors'). The statement also applies to enterprises undertaking construction activities of the type dealt with in this statement not as contractors but on their own account as a venture of a commercial nature where the enterprise has entered into agreements for sale.

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