Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

106:  
Which of the following is not deferred revenue expenditure?
A.

Heavy advertisement expenditure.

B.
Expenses incurred in removing the business to more convenient premises.
C.

Preliminary expenses.

D.

Depreciation on fixed assets.

 
 

Option: D

Explanation :


107:  
Assessment of depreciation and the amount to be charged in respect thereof in an accounting period are usually not based on
A.

Market value of the asset

B.
Historical cost or other amount substituted for the historical cost of the depreciable asset when the asset had been revalued
C.
Expected useful life of the depreciable asset
D.
Estimated residual value of the depreciable asset
 
 

Option: A

Explanation :


108:  

Accounting Standard Board was set up by

A.
Institute of Chartered Accountants of India
B.
Institute of Cost and Works Accountants of India
C.
Institute of Company Secretaries of India
D.

Government of India

 
 

Option: A

Explanation :


109:  
Which of the following cannot be treated as revenue expenditure?
A.

Cost of goods purchased for resale.

B.
Wages paid for the erection of plant and machinery.
C.

Obsolescence cost.

D.
Expenses incurred by way of repairs of existing assets which do not in any way add to their earning capacity.
 
 

Option: B

Explanation :


110:  
In reference to the accounting standards, choose the correct statement:
A.
Accounting standards codify the generally accepted accounting principles
B.
They lay down the norms of accounting policies and practices by way of codes or guidelines
C.
The main purpose of accounting standards is to provide information to the user as to the basis on which the accounts have been prepared
D.

All of the above

 
 

Option: D

Explanation :




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