Tag: accounting standards: concept and objectives

Questions Related to accounting standards: concept and objectives

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

Show answer
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.

Show answer
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