Wednesday, 2 September 2015

Indian Accounting Standard Skills Test

Indian Accounting Standard Skills Test

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Which of the following is related to the Indian Accounting Standard 30?

a. Financial Instruments Recognition and measurement
b. Interim Financial Reporting
c. Financial Instruments - Presentation
d. Segment reporting

Indian Accounting Standard 6 deals with:

a. Depriciation Accounting.
b. Revenue Recognition.
c. Employees Benefit.
d. Intangible Assets.

Which of the following is true about the Interim period?

a. It is a financial reporting period shorter than a full financial year.
b. It is a financial reporting period greater than a full financial year.
c. It is a financial reporting period two times a full financial year.
d. It is a financial reporting period equal to a full financial year.

Revenue recognition is dealt with in which of the following Indian Accounting Standards?

a. IND AS 9
b. IND AS 10
c. IND AS 11
d. IND AS 17

Which of the following is the objective of the Indian Accounting Standards(IND AS) 17?

a. To prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation to leases.
b. To prescribe the accounting treatment of revenue and costs associated with construction contracts.
c. To prescribe the basis for presentation of general purpose financial statements.
d. To require the provision of information about the historical changes in cash and cash equivalents of an entity.

For the purpose of applicability of accounting standards, the entities and companies are classified into various categories by the ICAI. Based on this categorization, co-operative banks belong to which of the following categories?

a. Small and Medium Companies
b. Level 1 Entities
c. Level 2 Entities
d. Level 3 Entities

What is the minimum reporting period considered for presenting the financial statements by an entity?

a. 9 months
b. 12 months
c. 15 months
d. 18 months

According to the Indian Accounting Standard on Revenue Recognition, which of the following is recognized on time basis?

a. Interest
b. Royalties
c. Dividends
d. Rendering of services

Which of the following is an example of post-employment benefits?

a. wages
b. pensions
c. medical care
d. bonuses

Complete the following sentence:

If a parent loses control of a subsidiary, it:

a. recognizes the assets (including any goodwill) and liabilities of the subsidiary at their carrying amounts at the date when control is lost.
b. recognizes the carrying amount of any non-controlling interests in the former subsidiary at the date when control is lost (including any components of other comprehensive income attributable to them).
c. derecognizes any investment retained in the former subsidiary at its fair value at the date when control is lost.
d. recognizes any resulting difference as a gain or loss in profit or loss, attributable to the parent.

Which Indian Accounting Standard prohibits retrospective application of some aspects of other Ind-Ass?

a. IND AS 101
b. IND AS 103
c. IND AS 106
d. IND AS 108

Which of the following is the objective of Indian Accounting Standards (IND AS) 103?

a. to require entities to provide disclosures in their financial statements.
b. to improve the relevance, reliability, and comparability of the information that a reporting entity provides in its financial statements about a business combination and its effects.
c. to specify the financial reporting for insurance contracts by any entity that issues such contracts (described in this Indian Accounting Standard as an  insurer).
d. to specify the financial reporting by an entity when it undertakes a share-based payment transaction.

Which of the following defines an equity instrument?

a. Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
b. A financial instrument that gives the holder the right to put the instrument back to the issuer for cash or another financial asset or is automatically put back to the issuer on the occurrence of an uncertain future event or the death or retirement of the instrument holder.
c. Any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
d. The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

Statement on "Borrowing costs" is covered in:

a. Indian Accounting Standard 13
b. Indian Accounting Standard 16
c. Indian Accounting Standard 19
d. Indian Accounting Standard 27
e. Indian Accounting Standard 29

Indian Accounting Standard 28 deals with:

a. Financial reporting of assets in joint ventures
b. Accounting for intangible assets
c. Government grants
d. Earnings per share
e. Impairment of Assets

Which of the following is an example of cash flow arising from Investing activities?

a. cash payments to suppliers for goods and services.
b. cash payments to and on behalf of employees.
c. cash repayments of amounts borrowed.
d. cash advances and loans made to other parties (other than advances and loans made by a financial institution).

In how many categories the Employees Benefits have been classified according to the Indian Accounting Standard 15?

a. Two
b. Three
c. Four
d. Five

Which of the following Indian Accounting Standards is applicable only to Level 1 entities?

a. IND AS 19
b. IND AS 15
c. IND AS 26
d. None of the above

Which of the following information in the financial statements is not prepared by an entity using the Accrual basis of accounting?

a. Financial Position
b. Financial Performance
c. Cash Flow
d. None of the above

Which Indian Accounting Standard's requirements about changes in accounting policies do not apply in an entity's first Ind-AS financial statements?

a. IND AS 11
b. IND AS 7
c. IND AS 19
d. IND AS 8

Which of the following is the requirement for applying the Acquisition method?

a. To identify the acquirer.
b. To determine the acquisition date.
c. To recognize and measure the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree.
d. To recognize and measure goodwill or a gain from a bargain purchase.
e. All of the above.

What is the process of applying a new accounting policy to transactions, other events and conditions as if that policy had always been applied called?

a. Retrospective application
b. Retrospective restatement
c. Accounting estimate
d. Prospective application

Depreciation of an asset does not depend on:

a. historical cost.
b. life of the asset.
c. estimated residual value.
d. interim period.

When is the exchange of goods not regarded as the transaction which generates revenue?

a. when the goods are exchanged for similar type of goods.
b. when the goods are exchanged with dissimilar type of goods.
c. both a and b
d. none of the above

Complete the following sentence:

IND AS 21 does not apply:

a. when an entity translates amounts relating to derivatives from its functional currency to its presentation.
b. to the presentation of an entity's financial statements in a foreign currency and sets out requirements for the resulting financial statements to be described as complying with Indian Accounting Standards.
c. to hedge accounting for foreign currency items, including the hedging of a net investment in a foreign operation.

Is Prudence a fundamental accounting assumption?

a. Yes
b. No

Which of the following Indian Accounting Standards is applied in Accounting for Government Grants?

a. IND AS 10
b. IND AS 32
c. IND AS 29
d. IND AS 12

Which of the following standards has the objective to establish principles  for recognizing and measuring financial assets, financial liabilities, and some contracts to buy or sell non-financial items?

a. IND AS 24
b. IND AS 17
c. IND AS 39
d. IND AS 7

Which of the following standards is applied in identifying related party relationships and transactions?

a. IND AS 16
b. IND AS 24
c. IND AS 101
d. IND AS 107

Indian Accounting Standard 31 is applicable to all types of entities.

a. True
b. False
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