MCQ-FINANCIAL REPORTING UNDER INDIAN ACCOUNTING STANDARDS (IND AS)
Which of the following is the primary objective of financial reporting under Ind AS?
a) To comply with tax regulations
b) To provide information useful for making economic decisions
c) To reduce the workload of accountants
d) To maintain secrecy of financial data
Answer: b) To provide information useful for making economic decisions
Ind AS is converged with which international standard?
a) IFRS
b) US GAAP
c) ASPE
d) UK GAAP
Answer: a) IFRS
Which Ind AS deals with the presentation of financial statements?
a) Ind AS 101
b) Ind AS 16
c) Ind AS 1
d) Ind AS 18
Answer: c) Ind AS 1
Ind AS 16 is related to which of the following?
a) Revenue from Contracts with Customers
b) Property, Plant and Equipment
c) Leases
d) Financial Instruments
Answer: b) Property, Plant and Equipment
Which of the following is NOT a component of financial statements under Ind AS 1?
a) Balance Sheet
b) Income Statement
c) Statement of Changes in Equity
d) Statement of Future Cash Flows
Answer: d) Statement of Future Cash Flows
Under Ind AS 7, which of the following activities is NOT classified as a cash flow activity?
a) Operating activities
b) Investing activities
c) Financing activities
d) Budgeting activities
Answer: d) Budgeting activities
Which Ind AS provides guidance on the recognition and measurement of financial instruments?
a) Ind AS 32
b) Ind AS 107
c) Ind AS 109
d) Ind AS 115
Answer: c) Ind AS 109
Which Ind AS deals with revenue recognition from contracts with customers?
a) Ind AS 18
b) Ind AS 37
c) Ind AS 115
d) Ind AS 38
Answer: c) Ind AS 115
Ind AS 21 deals with which of the following?
a) Income Taxes
b) The Effects of Changes in Foreign Exchange Rates
c) Borrowing Costs
d) Employee Benefits
Answer: b) The Effects of Changes in Foreign Exchange Rates
Which of the following is the correct order of preparing financial statements under Ind AS?
a) Income Statement, Balance Sheet, Cash Flow Statement, Statement of Changes in Equity
b) Balance Sheet, Income Statement, Statement of Changes in Equity, Cash Flow Statement
c) Statement of Changes in Equity, Income Statement, Cash Flow Statement, Balance Sheet
d) Cash Flow Statement, Income Statement, Balance Sheet, Statement of Changes in Equity
Answer: b) Balance Sheet, Income Statement, Statement of Changes in Equity, Cash Flow Statement
Which of the following entities are required to comply with Ind AS in India?
a) All companies
b) Companies listed on stock exchanges in India and their subsidiaries
c) Only small and medium enterprises
d) Companies engaged in manufacturing
Answer: b) Companies listed on stock exchanges in India and their subsidiaries
Ind AS 10 provides guidance on which of the following?
a) Consolidated Financial Statements
b) Events after the Reporting Period
c) Segment Reporting
d) Interim Financial Reporting
Answer: b) Events after the Reporting Period
Which Ind AS is concerned with segment reporting?
a) Ind AS 8
b) Ind AS 24
c) Ind AS 108
d) Ind AS 113
Answer: c) Ind AS 108
Ind AS 19 deals with which of the following topics?
a) Employee Benefits
b) Inventories
c) Provisions, Contingent Liabilities and Contingent Assets
d) Intangible Assets
Answer: a) Employee Benefits
Which of the following is NOT an example of an intangible asset under Ind AS 38?
a) Goodwill
b) Brand names
c) Research and development
d) Inventory
Answer: d) Inventory
Under Ind AS 23, borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset should be:
a) Expensed immediately
b) Capitalized as part of the cost of that asset
c) Deferred to future periods
d) Treated as a liability
Answer: b) Capitalized as part of the cost of that asset
Ind AS 36 is related to which of the following?
a) Impairment of Assets
b) Earnings Per Share
c) Revenue Recognition
d) Related Party Disclosures
Answer: a) Impairment of Assets
Which Ind AS deals with the accounting for government grants?
a) Ind AS 12
b) Ind AS 20
c) Ind AS 37
d) Ind AS 103
Answer: b) Ind AS 20
Ind AS 12 provides guidance on:
a) Employee Benefits
b) Income Taxes
c) Property, Plant and Equipment
d) Inventories
Answer: b) Income Taxes
Which of the following is NOT a disclosure requirement under Ind AS 24 for related party transactions?
a) Nature of the relationship
b) Amounts involved
c) Provisions for doubtful debts
d) Names of directors
Answer: d) Names of directors
Ind AS 40 relates to which type of assets?
a) Investment Property
b) Biological Assets
c) Financial Assets
d) Intangible Assets
Answer: a) Investment Property
Ind AS 101 deals with:
a) First-time Adoption of Indian Accounting Standards
b) Share-based Payment
c) Insurance Contracts
d) Fair Value Measurement
Answer: a) First-time Adoption of Indian Accounting Standards
Under Ind AS 2, which of the following is the correct method for valuing inventories?
a) Lower of cost and net realizable value
b) Lower of market value and cost
c) Higher of cost and net realizable value
d) Higher of market value and cost
Answer: a) Lower of cost and net realizable value
Ind AS 113 provides a framework for:
a) Presentation of Financial Statements
b) Fair Value Measurement
c) Consolidated Financial Statements
d) Operating Segments
Answer: b) Fair Value Measurement
Which of the following is a primary qualitative characteristic of financial information according to Ind AS?
a) Verifiability
b) Understandability
c) Comparability
d) Faithful representation
Answer: d) Faithful representation
Ind AS 27 deals with:
a) Separate Financial Statements
b) Joint Arrangements
c) Consolidated Financial Statements
d) Disclosure of Interests in Other Entities
Answer: a) Separate Financial Statements
Which Ind AS covers leases?
a) Ind AS 16
b) Ind AS 19
c) Ind AS 17
d) Ind AS 102
Answer: c) Ind AS 17
Ind AS 105 deals with:
a) Non-current Assets Held for Sale and Discontinued Operations
b) Investment Property
c) Consolidation
d) Provisions and Contingencies
Answer: a) Non-current Assets Held for Sale and Discontinued Operations
Ind AS 34 is related to:
a) Interim Financial Reporting
b) Consolidated Financial Statements
c) Segment Reporting
d) Employee Benefits
Answer: a) Interim Financial Reporting
Under Ind AS, which of the following is classified as an investing activity in the cash flow statement?
a) Sale of goods
b) Payment of dividends
c) Purchase of property, plant, and equipment
d) Issuance of shares
Answer: c) Purchase of property, plant, and equipment
Ind AS 41 deals with:
a) Agriculture
b) Insurance Contracts
c) Investment Property
d) Intangible Assets
Answer: a) Agriculture
Which of the following is NOT a financial statement as per Ind AS 1?
a) Statement of Financial Position
b) Statement of Profit or Loss
c) Statement of Cash Flows
d) Statement of Accounting Policies
Answer: d) Statement of Accounting Policies
Ind AS 8 deals with:
a) Accounting Policies, Changes in Accounting Estimates and Errors
b) Inventories
c) Revenue Recognition
d) Leases
Answer: a) Accounting Policies, Changes in Accounting Estimates and Errors
Ind AS 103 relates to:
a) Business Combinations
b) Revenue from Contracts with Customers
c) Borrowing Costs
d) Earnings Per Share
Answer: a) Business Combinations
Which of the following is a key principle of Ind AS 115?
a) Revenue should be recognized at the point of sale
b) Revenue should be recognized over time
c) Revenue should be recognized when control of goods or services is transferred to the customer
d) Revenue should be recognized when cash is received
Answer: c) Revenue should be recognized when control of goods or services is transferred to the customer
Ind AS 20 deals with the accounting of which of the following?
a) Employee Benefits
b) Government Grants and Disclosure of Government Assistance
c) Leases
d) Revenue
Answer: b) Government Grants and Disclosure of Government Assistance
Which of the following Ind AS deals with joint arrangements?
a) Ind AS 111
b) Ind AS 28
c) Ind AS 27
d) Ind AS 113
Answer: a) Ind AS 111
Ind AS 102 deals with:
a) Share-based Payment
b) Borrowing Costs
c) Consolidated Financial Statements
d) Revenue Recognition
Answer: a) Share-based Payment
Under Ind AS 37, a provision should be recognized when:
a) There is a possible obligation
b) There is a present obligation arising from past events
c) There is a future obligation
d) There is no obligation
Answer: b) There is a present obligation arising from past events
Which Ind AS provides guidance on financial instruments: recognition and measurement?
a) Ind AS 32
b) Ind AS 39
c) Ind AS 107
d) Ind AS 109
Answer: d) Ind AS 109
Ind AS 24 deals with which of the following?
a) Related Party Disclosures
b) Financial Instruments
c) Consolidated Financial Statements
d) Revenue
Answer: a) Related Party Disclosures
Which of the following is NOT a component of other comprehensive income under Ind AS?
a) Foreign currency translation differences
b) Changes in revaluation surplus
c) Actuarial gains and losses on defined benefit plans
d) Revenue from sales of goods
Answer: d) Revenue from sales of goods
Ind AS 16 requires that property, plant, and equipment be initially measured at:
a) Fair value
b) Historical cost
c) Net realizable value
d) Replacement cost
Answer: b) Historical cost
Which Ind AS deals with the effects of changes in foreign exchange rates?
a) Ind AS 21
b) Ind AS 23
c) Ind AS 29
d) Ind AS 41
Answer: a) Ind AS 21
Ind AS 33 is related to:
a) Earnings Per Share
b) Borrowing Costs
c) Employee Benefits
d) Leases
Answer: a) Earnings Per Share
Ind AS 105 requires assets held for sale to be measured at:
a) Carrying amount
b) Fair value
c) Lower of carrying amount and fair value less costs to sell
d) Higher of carrying amount and fair value
Answer: c) Lower of carrying amount and fair value less costs to sell
Ind AS 2 inventories are valued using which cost formula?
a) FIFO
b) LIFO
c) Weighted average cost
d) Both a) and c)
Answer: d) Both a) and c)
Under Ind AS 36, an impairment loss is recognized when:
a) The carrying amount of an asset exceeds its recoverable amount
b) The carrying amount of an asset is less than its recoverable amount
c) The fair value of an asset is more than its historical cost
d) The net realizable value of an asset is higher than its carrying amount
Answer: a) The carrying amount of an asset exceeds its recoverable amount
Ind AS 12 requires deferred tax assets and liabilities to be measured based on:
a) Tax rates that are enacted or substantively enacted by the reporting date
b) Tax rates that are expected to be enacted in the future
c) Historical tax rates
d) Average tax rates
Answer: a) Tax rates that are enacted or substantively enacted by the reporting date
Ind AS 7 requires cash flows to be classified into which of the following categories?
a) Operating, Investing, and Financing activities
b) Operating, Financing, and Dividend activities
c) Investing, Financing, and Dividend activities
d) Operating, Investing, and Tax activities
Answer: a) Operating, Investing, and Financing activities
