BCOM AFM-1 (Disclosure of Accounting) MCQ's




Question 1 :
A company should select accounting policy which helps to hide losses.

  1. TRUE
  2. FALSE
  

Question 2 :
Accounting Standard 1 is

  1. Mandatory
  2. Optional
  3. Recommendatory
  4. No longer valid
  

Question 3 :
The _____ statements are prepared from the books of accounts and other records maintained by the enterprise.

  1. Leagal
  2. Non–Leagal
  3. None of the above
  4. financial
  

Question 4 :
Disclosure should form part of

  1. Directors report
  2. Auditor's report
  3. Final accounts
  4. Books of accounts
  

Question 5 :
Factors to be considered while selecting accounting policies

  1. Consistency
  2. Prudence
  3. Dual aspect
  4. Cost
  

Question 6 :
There is no need to establish accounting standards.

  1. TRUE
  2. FALSE
  

Question 7 :
Disclosure of Accounting Policies should form part of _____ _____.

  1. Directors report
  2. Auditor's report
  3. Final Accounts
  4. Books of accounts
  

Question 8 :
Different firms follow _____ policies.

  1. Same
  2. leagal
  3. None of the above
  4. Different
  

Question 9 :
It is difficult to follow a _____ accounting policy in all the circumstances.

  1. uniform
  2. Transperancy
  3. None of the above
  

Question 10 :
Compliance of Accounting Standard is _____.

  1. Recommendatory
  2. Optional
  3. None of the above
  4. Mandatory
  

Question 11 :
It is necessary to standardise the accounting principles and policies for ensuring

  1. Consistency
  2. Transperancy
  3. Comparability
  4. All of the above
  

Question 12 :
_____ _____ are laid down by law.

  1. Auditor's report
  2. Directors report
  3. Accounting Standards
  4. None of the above
  

Question 13 :
Accounting policies are laid down by law.

  1. TRUE
  2. FALSE
  

Question 14 :
As per AS 1 disclosure is needed if the following concept is not followed :

  1. Going concern
  2. Realisation
  3. Matching
  4. Cost
  

Question 15 :
There is need to _____ change in accounting policies

  1. Accural
  2. Realisation
  3. disclose
  4. All of the above
  

Question 16 :
As per AS–1, disclosure of accounting policies should be made

  1. At all relevant places
  2. At one place
  3. In Profit - Loss Account
  4. In Balance Sheet
  

Question 17 :
As per AS 1 the effect of any change in accounting policy on the value of any item in the final accounts should

  1. Be reported to directors
  2. Be reported to CEO
  3. Be disclosed
  4. Be ignored
  

Question 18 :
No purpose is served by issuing accounting standards by ICAI.

  1. TRUE
  2. FALSE
  

Question 19 :
Following factors should be considered in selection of accounting policies

  1. Consistency
  2. Prudence
  3. Dual aspect
  4. Cost
  

Question 20 :
It is necessary to standardise the accounting principles to ensure consistency.

  1. TRUE
  2. FALSE
  

Question 21 :
Following is an example of accounting policy

  1. Realisation
  2. Accrual
  3. Entity
  4. Valuation of fixed assets
  

Question 22 :
In case of conflict between Accounting Standards and law

  1. Accounts should be prepared as per law
  2. Accounts should be prepared as per Accounting Standards
  3. Either law or AS should be followed
  4. Both should be followed
  

Question 23 :
Following is an example of an accounting policy

  1. Going concern
  2. Entity
  3. Conservatism
  4. Conversion of foreign currency items
  

Question 24 :
If standards are not followed, the _____ has to make a disclosure in the accounting report in case of failure.

  1. Manager
  2. Employee
  3. auditor
  4. None of the above
  

Question 25 :
Following factors should be considered in selection of accounting policies

  1. Going concern
  2. Growth of business
  3. Substance over form
  4. Solvency
  

Question 26 :
Accounting standards are issued by Government of India.

  1. TRUE
  2. FALSE
  

Question 27 :
According to AS 1 the purpose of accounting assumptions should be disclosed.

  1. TRUE
  2. FALSE
  

Question 28 :
Accrual is a fundamental accounting assumption.

  1. TRUE
  2. FALSE
  

Question 29 :
Materiality has to be considered in selection of accounting policies.

  1. TRUE
  2. FALSE
  

Question 30 :
There is _____ to establish accounting standards.

  1. No need
  2. Important
  3. None of the above
  4. need
  
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