Tag: book keeping and accountancy
Questions Related to book keeping and accountancy
Changes in accounting policies can be made only _________.
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To comply with accounting standards
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To ensure better presentation of the financial statement
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To comply with law
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All of the above
Consistency is the basic assumption and it is assumed that various policies or methods adopted by the firm while preparing the financial statement are consistent from one period to another.
As per AS-1 significant accounting policies may not be ________.
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Disclosed at all
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Omitted from financial disclosure
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Selected on random basis
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Changed from time to time
Financial statement must be prepared with a true and fair view. All the relevant information which is of the interest of the owner, investors, creditors should be fully disclosed. All the significant policies should also be disclosed.
Inappropriate selection of the accounting policy decision may lead to _________.
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Overstating the financial position performance
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Over/understating the performance of financial position
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Overstatement of losses
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Understatement of profit
As per AS-2, cost of inventory is determined by applying___________.
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FIFO
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LIFO
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highest in first out
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next in first out
According to AS-2 inventories means tangible property held_________.
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For sale in the ordinary course of business
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In the process of production of such goods or
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In the production of goods or services for sale including maintenance supplies and consumables other than machinery spares
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All of the above
According to AS 2 inventory means tangible property held for sale in the ordinary course of business or in the process of production of such goods or in the production of goods or services for sale including maintenance supplies and consumables other than machinery spares.
AS-2 is not applicable to________.
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Financial instruments held as stock in trade
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Live-stock,agricultural and forest products, mineral oils, ores and gases
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Work in progress arising under construction contracts.
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All the three
As per AS-2, Valuation of inventories prescribed the accounting treatment for inventories and sets the guidance to determine the value at which the inventories are carried in the financial statement.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs.
The cost of inventories should comprise all costs of purchase, Costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
Hence, it does not include any of the items given in the options.
AS-2 requires that the financial statements should disclose________.
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The accounting policies adopted in measuring inventories, including the cost formula
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The total carrying amount of inventories and classification appropriate to the enterprise
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Both (a) & (b)
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Either (a) or (b)
According to AS - 2 financial statements should disclose the accounting policies adopted in measuring inventories, including the cost formula and the total carrying amount of inventories and classification appropriate to the enterprise.
Which of these AS deals with inventory valuation?
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AS-13
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AS-12
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AS-2
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AS-5
As per AS-2, Valuation of inventories prescribed the accounting treatment for inventories and sets the guidance to determine the value at which the inventories are carried in the financial statement.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs.
The cost of inventories should comprise all costs of purchase, Costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
As per AS-2, "Inventories should be valued at the lower of cost and net realisable value."
As per AS-2, inventories are valued at lower of cost or_______.
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Realisable value
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Replacement value
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Net realisable value
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Market value
As per AS-2, Valuation of inventories prescribed the accounting treatment for inventories and sets the guidance to determine the value at which the inventories are carried in the financial statement.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs.
The cost of inventories should comprise all costs of purchase, Costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
As per AS-2, "Inventories should be valued at the lower of cost and net realisable value."
As per AS-2, inventory means goods_______.
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Spare parts held for break down of machinery
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Held for sale in the ordinary course of business
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Fixed assets purchased for sale
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Shares purchased for sale
As per AS-2, Valuation of inventories prescribed the accounting treatment for inventories and sets the guidance to determine the value at which the inventories are carried in the financial statement.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs.
The cost of inventories should comprise all costs of purchase, Costs of conversion and other costs incurred in bringing the inventories to their present location and condition.