Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

86:  
Which of the following assets are dealt with by AS - 10 (Accounting Standard on Fixed Assets)?
A.
Land, building, plant and machinery, vehicles, furniture and fittings
B.

Goodwill and patents

C.

Trademarks and designs

D.

All of the above

 
 

Option: D

Explanation :


87:  

Cost of inventories includes

A.

Direct Material + Direct Expenses

B.

Direct Labour + Direct Expenses

C.
All costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition
D.

Direct material only

 
 

Option: C

Explanation :


88:  

Closing stock is valued at

A.

Cost

B.

Market value

C.

Cost or market price whichever is lower

D.

None of the above

 
 

Option: C

Explanation :


89:  

Choose the correct statement:

A.
According to AS - 6, depreciation is to be provided on land
B.
According to AS - 6, depreciation is not to be provided on land under any situation
C.
According to AS - 6, depreciation is not to be provided on land unless it has a limited useful life for the enterprise
D.
AS - 6 is silent on the question of providing depreciation on land
 
 

Option: C

Explanation :


90:  
Match List I with List II and select correct answer using the codes given below:
            List l                                       List II
(Accounting Convention)        (Principles Involved)
a. Consistency                       I. Losses are an ticipated and accounted for in advance but profits are not accotrnted
                                                     for until realised.
b. Comparability                    II. All the relevant financial information should be summarised and presented in the                                                          accounting statements.
c. Conservatism                   III. Accounting procedures in an entity should be followed uniformly from period to                                                              period.
d. Disclosure                         IV. Accounting statements of different periods of an entity and those of different                                                                     entities of a period should be based on the same accounting principles and                                                                   procedures.

 

A.

 a   b   c    d

IV   III   I    II

B.

 a   b   c    d

III   IV   I    II

C.

 a   b   c    d

IV   III   II    I

D.

 a   b   c    d

III   IV   II    I

 
 

Option: B

Explanation :




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