Tag: accounting systems and reporting standards

Questions Related to accounting systems and reporting standards

Accounting Standards (ASs) are written policy documents may be issued by :
X. Expert accounting body
Y. Government
Z. Other regulatory body
Select the correct answer from the options given below _______________.

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

  1. X but not Y and Z

  2. Y but not X and Z

  3. Z but not X and Y

  4. All X, Y & Z

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Correct Option: D

Accounting standards are ____________________.

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

  1. Written policy documents issued by expert accounting body

  2. Set of broad accounting policies to be followed by an entity.

  3. Set in the form of general principles

  4. All of the above

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Correct Option: D

Statements of Standard Accounting Practice and Financial Reporting Standards should be complied with when preparing the final accounts of a limited company because __________.

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

  1. The Companies Act $1985$ demands that they are used

  2. The auditors will insist they are followed

  3. The directors are under a legal obligation to ensure they are followed

  4. They ensure that the accounts present a 'true and fair view'

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Correct Option: D

The standard given by ICAI for calculation of depreciation is ________.

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

  1. Accounting standard 5 depreciation accounting

  2. Accounting standard 6 depreciation accounting

  3. Accounting standard 7 depreciation accounting

  4. Accounting standard 4 depreciation accounting

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Correct Option: B

Which one of the following is one of the major professional accountancy bodies in the India?

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

  1. Institute of Chartered Accountants of India

  2. Chartered Association of Accountants

  3. Indian Institute of Chartered Accountants

  4. Institute of Company Accountants

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Correct Option: A

The Institute of Chartered Accountants of India (ICAI) constituted the Accounting Standards Board (ASB) on _________, with a view to harmonizing the diverse accounting policies and practices in use in India.

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

  1. $2^{nd}$ Oct, 1977

  2. $21^{st}$ April, 1977

  3. $15^{th}$ Aug, 1977

  4. $21^{st}$ April, 1997

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Correct Option: B
Explanation:

The Council of the Institute of Chartered Accountants of India constituted Accounting Standards Board (ASB) on 21st April, 1977 recognising the need for Accounting Standards in India.

In India, Standards of Accounting is issued by the Institute of Chartered Accountants of India (ICAI). 

The Council of the Institute of Chartered Accountants of India has so far issued thirty two accounting standards.

How many accounting standards presently issued by ICAI and notified by CG?

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

  1. $29$

  2. $32$

  3. $31$

  4. $19$

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Correct Option: A
Explanation:

The Institute of Chartered Accountants of India (ICAI) constituted the Accounting Standards Board (ASB) on 21st April, 1977 ) to harmonise the diverse accounting policies and practices in use in India. ASB of the ICAI has been issuing accounting standards.

Since then, it has issued 32 Accounting Standards so far, out of which 29 are notified by Central Government.

The Institute of Chartered Accountants of India (ICAI) constituted the _________, with a view to harmonizing the diverse accounting policies and practices in use in India.

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

  1. Standards Board of Accounting (SBA)

  2. Accounting Standards Board (ASB)

  3. Accounting Standards Committee (ASC)

  4. Accounting Committee (AC)

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Correct Option: B
Explanation:

The Institute of Chartered Accountants of India (ICAI) constituted the Accounting Standards Board (ASB) on 21st April, 1977 ) to harmonise the diverse accounting policies and practices in use in India. 

ASB of the ICAI has been issuing accounting standards since then. It has issued 32 Accounting Standards so far.

Which of the following is not regarded as the fundamental concept that is identified by AS-1?

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

  1. Separate Entity Concept

  2. Prudence

  3. Going Concern Concept

  4. Accrual Concept

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Correct Option: A

Accounting Standards in India are issued by _________________.

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

  1. The Board of Studies - ICAI

  2. The Accounting Standards Board-ICAI

  3. The Expert Advisory Committee - ICAI

  4. The International Accounting Standards Committee (IASC)

Show answer
Correct Option: B
Explanation:

The Institute of Chartered Accountants of India (ICAI) constituted the Accounting Standards Board (ASB) on 21st April, 1977 ) to harmonise the diverse accounting policies and practices in use in India. 

ASB of the ICAI has been issuing accounting standards.

Since then, it has issued 32 Accounting Standards so far.