Tag: book keeping and accountancy

Questions Related to book keeping and accountancy

AS - 3 deals with __________________.

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

  1. Accounting for government grants

  2. Accounting for amalgamations

  3. Cash Flow statement

  4. Fund Flow statement

Show answer
Correct Option: C
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. 

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

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

  1. Sole proprietor

  2. Partnership firm

  3. Corporate body

  4. All the three

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Correct Option: C
Explanation:

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

Which one of the following accounting standards is not mandatory in India?

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

  1. Fixed assets accounting and revenue recognition.

  2. Inventory and depreciation accounting.

  3. Non-monetary assets and fixed assets.

  4. Monetary assets and depreciation accounting.

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Correct Option: C

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

  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)

Show answer
Correct Option: C
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

The basis for the payment of cash by contractee under contract is __________.

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

  1. work certified

  2. work uncertified

  3. contract cost

  4. value of plant used in the contract

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Correct Option: A

If an allocated indirect cost is 1500 and actual in curred indirect cost is 1500 and actual in curred in direct costis 1200, then this is classified as _____________.

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

  1. applied indirect cost

  2. applied direct cost

  3. incurred indirect cost

  4. over allocated indirect cost

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Correct Option: D

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

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

  1. manufacturing analysis method

  2. price analysis method

  3. unit analysis method

  4. account analysis method

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Correct Option: D

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

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

  1. Sale is made

  2. Cash is received

  3. Goods are delivered

  4. Services are rendered

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Correct Option: B

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:

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

  1. 4, 3, 2, l

  2. 3, 4, 2, 1

  3. 4, 3, 1, 2

  4. 3, 4, 1, 2

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Correct Option: C

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

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

  1. smaller standard deviation

  2. larger standard deviation

  3. smaller variance

  4. larger variance

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Correct Option: B