Tag: accounting systems and reporting standards

Questions Related to accounting systems and reporting standards

In accordance with IAS 1 Presentation of Financial Statements, which one of the following items must not be separately presented in the statement of financial position? 

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

  1. Net Assets

  2. Non financial Assets

  3. Asset revaluation surplus

  4. Issued capital and reserves

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Correct Option: D
Explanation:

In accordance with IAS 1 Presentation of financial statements, Issued share capital and reserves are not to be separately presented in the statement of financial position. 

Which one of the following statements is correct? When creditors' velocity or creditors' turnover is higher as compared to debtors' velocity, it would ______________.

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

  1. improve liquidity

  2. reduce liquidity

  3. have no effect on liquidity

  4. improve financial position

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Correct Option: C

If book value is greater than market value comparison with investors for future stock are considered as _____________.

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

  1. pessimistic

  2. optimistic

  3. experienced

  4. inexperienced

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Correct Option: A

X & Y entered a Joint Venture for export of Indian Handicraft items to overseas customers. X sends goods worth Rs. 2,00,000 to Y for export to USA. Y exported goods Worth Rs. 1,75,000 to USA for Rs. 2,10,000 and agreed to take away the remaining goods at the same gross profit as in the case of other exports. The goods will be valued at _______________.

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

  1. Rs. 25,000

  2. Rs. 30,000

  3. 27,500

  4. 22,500

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Correct Option: B

The objective of accounting standard is to ___________.

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

  1. bring uniformity in financial reporting

  2. ensure consistency and comparability of data with earlier years on with similar organizations

  3. both a & b

  4. establishment of law

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Correct Option: C

The first account standard (AS-I) issued by the Institute of Chartered Accountants of India is _________________.

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

  1. Valuation of Inventories

  2. Revenue Recognition

  3. Change in Financial Position

  4. Disclosure of Accounting Policies

Show answer
Correct Option: D
Explanation:


To ensure proper understanding of financial statements, it is necessary that all significant accounting policies adopted in the preparation and presentation of financial statements must be disclosed.
Such disclosure should form part of the financial statements.
It would be helpful to the reader of financial statements if they are all disclosed in one place instead of being scattered over several statements, schedules and notes.

Accounting policies followed by organizations ______________.

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

  1. Can be changed every year

  2. Should be consistently followed from year to year

  3. Can be changed after 5 year

  4. None of the above

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Correct Option: B

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 :-

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

  1. (a) only

  2. (b) only

  3. (c) only

  4. All of the above

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Correct Option: C

The ICAI so far has issued ______ accounting standards.

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

  1. 29

  2. 30

  3. 32

  4. 35

Show answer
Correct Option: C
Explanation:

Accounting Standards (i.e. AS 1~32) have been issued/ amended by the Accounting Standards Board of ICAI from time to time, to establish uniform standards for preparation of financial statements, in accordance with generally accepted accounting practices (GAAP) in India and for better understanding of the users.

According to _____ Dictionary for Accountants, an account has been defined as a formal record of a particular type of transactions expressed in money. 

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

  1. Kohler's

  2. Oxfords

  3. Chate

  4. Taxmann

Show answer
Correct Option: A