Tag: book keeping and accountancy

Quizzes (126) Questions (1524)

Questions Related to book keeping and accountancy

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

AS - 3 deals with __________________.

  1. Accounting for government grants

  2. Accounting for amalgamations

  3. Cash Flow statement

  4. Fund Flow statement
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Accounting standards are rules and guidelines set up by the governing bodies, to keep accounting practices consistent and understandable across all companies and industries. 

Accounting standards in India are issued by the Institute of Chartered Accountants of India. At present, there are 30 Accounting Standards. 
Out of these, AS- 3 deals with Cash Flow Statement. 

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

Accounting Standards issued by the Institute of Chartered Accountants of India are mandatory to which of the following _______________.

  1. Sole proprietor

  2. Partnership firm

  3. Corporate body

  4. All the three
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Institute of Chartered Accountants of India has formed Accounting Standards which are mandatory for all the body corporate. 

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

Match List-I(Items) with List-II(Standards) and select the correct answer using the codes given the lists.

List-I(Items) List-II(Standards)
I. Accounting for fixed assets (a) AS-9
II. Revenue recognition (b) AS-10
III. Depreciation accounting (c) AS-3
IV. Cash flow statement (d) AS-6

  1. I-(b), II-(c), III-(d), IV-(a)

  2. I-(d), II-(a), III-(b), IV-(c)

  3. I-(b), II-(a), III-(d), IV-(c)

  4. I-(d), II-(c), III-(b), IV-(a)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Indian accounting standard is the accounting standard adopted by companies in India and issued under the supervision of accounting standards board (ASB) which was constituted as a body in the year 1977.
1. Accounting for fixed assets - AS-10
2. Revenue recognition - AS-9
3. Depreciation accounting - AS-6
4. Cash flow statement - AS-3
Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

An analysis and estimation method of cost, by classifying cost accounts as fixed or variable with respect for specific output level is considered as ______________.

  1. manufacturing analysis method

  2. price analysis method

  3. unit analysis method

  4. account analysis method
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Account analysis involves examining each cost account to determine whether it is fixed or variable relative to output levels.

Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

Under cash basis of accounting, revenue is recognized when _____________.

  1. Sale is made

  2. Cash is received

  3. Goods are delivered

  4. Services are rendered
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cash basis accounting recognizes revenue only when cash is actually received, regardless of when the sale occurred or services were rendered.

Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

Consider the following steps:

  1. Analysis of variances
  2. Initiating corrective action
  3. Measurement of actual performance
  4. Establishment of standards
The correct sequence of these steps in process of the following:

  1. 4, 3, 2, l

  2. 3, 4, 2, 1

  3. 4, 3, 1, 2

  4. 3, 4, 1, 2
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The standard process is: 1) Establish standards, 2) Measure actual performance, 3) Analyze variances, 4) Initiate corrective action.

Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

Greater chance of lower actual return than expected return and greater variation is indicated by _____________________.

  1. smaller standard deviation

  2. larger standard deviation

  3. smaller variance

  4. larger variance
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Standard deviation measures the dispersion of returns. A larger standard deviation indicates higher volatility and a greater range of potential outcomes, including lower returns.