Which of the following is NOT a Qualifying Asset?

• A) Power plan being in the process of manufacture
• B) Asset ready for use
• C) Inventories requiring a substantial period for manufacturing
• D) Special order for a special inventory that will be manufactured in 5 months

If:
Net profit of the year =Rs. 180,000
Total number of share outstanding during the year= 240,000 shares
Weighted average number of share outstanding during the year=200,000 shares
Basic Earning per Share =?

• A) Rs. 4.5 Per share
• B) Rs. 0.41 Per share
• C) Rs. 0.75 Per share
• D) Rs. 0.90 Per share

Borrowing cost is shown under benchmark treatment in:

• A) Balance sheet as a liability
• B) Profit and Loss Account as expense
• C) Balance sheet as an asset
• D) Profit and Loss Account as income

Which of the following IAS covers treatment of Accounting Policies?

• A) IAS 16
• B) IAS 8
• C) IAS 7
• D) IAS 18

Which of the following is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale?

• A) Intangible Asset
• B) Qualifying Asset
• C) Tangible Asset
• D) Outstanding Asset

Which of the following IAS covers treatment of Changes in Accounting Estimates?

• A) IAS 8
• B) IAS 7
• C) IAS 16
• D) IAS 18

Which of the following costs can be capitalized?

• A) Assets that are not currently in use because of excess capacity
• B) Assets under construction for entity’s own use
• C) Assets that are ready for intended use
• D) Assets intended for sale or use that are produced as discrete projects

Common share outstanding on January 01, 2005 =100,000 shares
Share issued on July 01, 2005= 50,000 shares
Weighted average number of share outstanding during the year?

• A) 125,000 shares
• B) 150,000 shares
• C) 100,000 shares
• D) 50,000 shares

Which of the following represents the interest and other costs incurred by an entity in connection with the borrowing of funds?

• A) Loan
• B) Outstanding interest on borrowed money
• C) Interest on borrowed money paid during the period
• D) Borrowing Costs

Basic earning per share is calculated by dividing profit or loss attributable to ordinary equity holders of the company by the:

• A) Potential ordinary share outstanding (as the denominator)
• B) Weighted average number of ordinary shares outstanding (as the denominator)
• C) Preference share outstanding (as the denominator)
• D) Total number of ordinary share outstanding (as the denominator)

When shall an entity change the accounting policy?

• A) If the change is required by interpretation
• B) All of the given options
• C) If the result in the financial statements providing reliable and more relevant information
• D) If the change is required by law

Which of the following IAS covers the retrospective restatements of prior period errors?

• A) IAS 18
• B) IAS 8
• C) IAS 16
• D) IAS 7

Ahmad & Co. changed LIFO method to FIFO method to account for its finished goods inventory. Whether it is:

• A) Change in accounting policy
• B) Irrelevant item
• C) Prior period error
• D) Change in accounting estimate

Which of the following fixed asset is shown at cost rather at book value?

• A) Machinery
• B) Vehicles
• C) Furniture
• D) Land

Under benchmark treatment borrowing costs are:

• A) Classified as contingent liability
• B) Classified as general
• C) Classified as specific
• D) Not classified

If:
Basic earning per share = Rs. 0.70 per share
Net profit of the year= Rs. 140,000
Total number of share outstanding during the year= 240,000 shares
Weighted average number of share outstanding during the year=?

• A) 200,000 shares
• B) 98,000 shares
• C) 240,000 shares
• D) 168,000 shares

The difference between the old ratio of the partners and his new ratio upon the admission of a new partner is called:

• A) Sacrifice ratio
• B) Declined ratio
• C) Improved ratio
• D) Profit ratio

Which of the following is/are related to the IAS-37?

• A) Contingent Liabilities
• B) Provisions
• C) All of the given options
• D) Contingent Assets

Which of the following IAS covers the treatment and recognition of Contingent Liabilities?

• A) IAS 38
• B) IAS 39
• C) IAS 37
• D) IAS 33

Which of the following is/are equal to “Capital”?

• A) Assets – Liabilities
• B) All of the given options
• C) Net worth of the firm
• D) Net Assets