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




Question 31 :
ASB uses the following process in establshment of Accounting Standards

  1. Preliminary draft, Exposure draft, Final draft, Standard
  2. Standard, Exposure draft, Preliminary draft, Final draft
  3. Exposure draft, Preliminary draft, Standard and final draft
  4. None of the above
  

Question 32 :
Compliance of Accounting Standards

  1. Makes financial statements comparable
  2. Makes financial statements reliable
  3. Harmonises accounting policies
  4. All the above
  

Question 33 :
A change in accouning policy requires sanction of the Central government.

  1. TRUE
  2. FALSE
  

Question 34 :
Following factors should be considered in selection of accounting policies

  1. Liquidity
  2. Cost
  3. Materiality
  4. Morale of employees
  

Question 35 :
The factors to be considered while selecting accounting policies include '

  1. Morale of staff
  2. Materiality
  3. Liquidity
  4. Inflation
  

Question 36 :
Accounting policies are not _____ for all organisations.

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

Question 37 :
Accounting Standards laid down by IAS only are followed in India.

  1. TRUE
  2. FALSE
  

Question 38 :
The limitations of AS are

  1. AS may be applied mechanically
  2. Choice between treatments is difficult
  3. AS cannot supercede the law
  4. All the above
  

Question 39 :
GAAP are included in

  1. Accounting standards
  2. Accounting rules
  3. Guidance Notes
  4. Framework of Accounting
  

Question 40 :
There is a need to disclose change in accounting policies.

  1. TRUE
  2. FALSE
  

Question 41 :
AS 1 is _____.

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

Question 42 :
Different firms follow different accounting policies.

  1. TRUE
  2. FALSE
  

Question 43 :
Accounting standards are issued by _____.

  1. CEO
  2. Director
  3. All of the above
  4. ICAI
  

Question 44 :
AS _____ deals with disclosure of accounting policies.

  1. GAAP
  2. AS 1
  3. ASB
  4. None of the above
  

Question 45 :
The purpose of AS 1 is to establish a Standard as to

  1. The preparation of final statements
  2. Fundamental accounting assumptions
  3. Desirable accounting policies
  4. Disclosure of accounting policies
  

Question 46 :
Following is the example of accounting policy

  1. Consistency
  2. Goodwill treatment
  3. Cost
  4. Conservatism
  

Question 47 :
Accounting policies are

  1. Prescribed by AS–1
  2. Same for all the organisations
  3. Change from concern to concern
  4. Laid down by law
  

Question 48 :
Compliance of accounting standards is optional.

  1. TRUE
  2. FALSE
  

Question 49 :
The Rule followed in disclosure of accounting policies

  1. All significant policies should be disclosed
  2. Only a few policies should be disclosed
  3. Accounting policies should not be disclosed
  4. None of the above
  

Question 50 :
GAPPS are not included in accounting standards.

  1. TRUE
  2. FALSE
  

Question 51 :
As per AS 1 significant accounting policies should be disclosed at one place.

  1. TRUE
  2. FALSE
  

Question 52 :
There is need of _____ to accounts.

  1. Report
  2. Data
  3. notes
  4. None ot the above
  

Question 53 :
Accounting assumptions should be disclosed in auditor’s report.

  1. TRUE
  2. FALSE
  

Question 54 :
There is a need to recognise and disclose contingent liabilities.

  1. TRUE
  2. FALSE
  

Question 55 :
Standardisation of accounting policies is necessary to ensure.

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

Question 56 :
Following is the example of accounting policy

  1. Realisation
  2. Accrual
  3. Accounting period
  4. Recognition of profit on contract
  

Question 57 :
Inventories may be valued by the _____ methods.

  1. different
  2. Written down
  3. Stright
  4. None of the above
  

Question 58 :
Accounts must be prepared as per _____.

  1. Organisation
  2. All of the above
  3. Law
  4. None of the above
  

Question 59 :
As per AS–1, disclosure of accounting policies should form part of

  1. Financial statements
  2. Director’s Report
  3. Auditor’s Report
  4. Books of accounts
  

Question 60 :
There is a need to disclose accounting policies.

  1. TRUE
  2. FALSE
  
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