Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

116:  

Valuation of inventory is dealt with in

A.

AS-1

B.

AS-2

C.

AS-3

D.

AS-4

 
 

Option: B

Explanation :


117:  
Which of the following accounting equations is not correct?
A.

Assets = Liabilities + Capital

B.

Capital = Assets - Liabilities

C.

Liabilities = Assets - Capital

D.

Liabilities = Assets + Capital

 
 

Option: D

Explanation :


118:  
How the deferred revenue expenses are treated in the books of accounts?
A.
Such expenses are taken to Profit and Loss Account in part every year and thus unwritten off portion may be allowed to stand in the balance sheet on the asset side.
B.
Such expenses are charged fully to the Profit and Loss Account of the year in which these are incurred.
C.

Either (A) or (B)

D.

None of the above

 
 

Option: A

Explanation :


119:  
Which of the following aspects of revenue recognition is not dealt by AS-9?
A.

Revenue arising from construction contracts

B.
Revenue arising from hire-purchase, lease agreements
C.
Revenue arising from governments grants and other similar subsidies
D.

All of the above

 
 

Option: D

Explanation :


120:  
AS - 6 deals with depreciation accounting and applies to all depreciable assets, except
A.
Forests, plantations and similar regenerative natural resources
B.
Wasting assets and expenditure on research and development
C.

Goodwill and livestock

D.

All of the above

 
 

Option: D

Explanation :




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