Corporate Accounting MCQS With Answers

26. Which of the following is not a component of cost of an asset?

A. purchase price

B. refundable sales tax

C. import duties

D. estimate of compulsory future dismantling costs

B. refundable sales tax

27. When an item of property, plant and equipment is revalued, what should be revalued?

A. a selection of assets decided by management

B. a selection of assets picked at random

C. the whole class of assets to which it belongs

D. the individual asset

C. the whole class of assets to which it belongs

28. Which of the following is not an asset that falls under the scope of Ind AS 16?

A. assets held for sale in the normal course of business

B. tangible assets

C. assets expected to be used for more than one period

D. assets held for the production or supply of goods or services

A. assets held for sale in the normal course of business

29. How should an asset be initially recognised in the financial statements?

A. measure at market value

B. measure at cost

C. measure at net realisable value

D. measure at fair value

B. measure at cost

30. Where is the amortisation of an intangible asset recognised?

A. equity

B. profit or loss

C. statement of financial position

D. statement of cash flows

B. profit or loss

31. Which of the following is not a requirement to capitalise development costs under Ind AS 38Intangible Assets?

A. the commercial feasibility for the asset may be uncertain

B. it must be technically feasible

C. the entity intends to sell the completed intangible asset

D. the entity can demonstrate how the asset will generate future economic benefits

A. the commercial feasibility for the asset may be uncertain

32. An intangible asset with a finite useful life should be amortised over

A. a period determined by management

B. five years

C. its expected useful life

D. no foreseeable limit

C. its expected useful life

33. What are intangible assets?

A. nonmonetary assets without physical substance

B. monetary assets without physical substance

C. monetary assets with physical substance

D. nonmonetary assets with physical substance

A. nonmonetary assets without physical substance

34. Which of the following is an intangible asset under Ind AS 38?

A. patent rights

B. market share

C. customer loyalty

D. technical knowledge training

A. patent rights

35. Which of the following measurement models is not permitted for the subsequentmeasurement of intangible assets under Ind AS 38?

A. revaluation model

B. fair value model

C. cost model

D. capital assets pricing model

Corporate Accounting

Thursday, January 13, 2022

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