Which of the following is/are represent(s) the “Losses” with respect to the IASB’s Framework?

• A) All of the given options
• B) Disposal of assets at a value lesser than its carrying amount
• C) Discharge of liabilities at a value higher than its carrying amount
• D) Disposal of assets at a value lesser than its book amount

With respect to IAS 10, a major business takeover after the balance sheet date or disposing of a major subsidiary is considered as which of the following Adjusting Event?

• A) Contingent Event
• B) Bogus Event
• C) Adjusting Event
• D) Non-Adjusting Event

Which of the following is/are the event/s after the balance sheet date with respect to IAS 10?

• A) Adjusting events only
• B) Both Adjusting and Non-adjusting events
• C) None of the given options
• D) Non-adjusting events only

Which of the following option is TRUE about the Draft Financial Statements?

• A) Draft statements are put in front of the Board of Directors for approval
• B) All of the given options
• C) Draft statements are prepared by the accounts department
• D) Draft statements are audited by the external auditors

Which of the following is/are represent the “Gains” with respect to the IASB’s Framework?

• A) Disposal of assets at a value higher than its book value
• B) All of the given options
• C) Disposal of assets at a value higher than its carrying amount
• D) Discharge of liabilities at a value lessor than its carrying amount

With respect to IAS 10, business announcing a plan to discontinue an operation after the balance sheet dates is considered as which of the following?

• A) Contingent Event
• B) Non-Adjusting Event
• C) Bogus Event
• D) Adjusting Event

Which of the following consist of money owing for goods supplied to the firm and for expenses & loans?

• A) Capital
• B) Asset
• C) Income
• D) Liability

Which of the following is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence of one or more uncertain future events not wholly within the control of the entity?

• A) Current asset
• B) Floating asset
• C) Fixed asset
• D) Contingent asset

Which of the following statement shows the financial position of the business?

• A) Balance Sheet
• B) Cash Flows Statement
• C) Statement of Owner's equity
• D) Income Statement

Payments made for the initial expenses incurred for the formation of a company refer to:

• A) Preliminary expenses
• B) Implicit expenses
• C) Start up expenses
• D) Explicit expenses

In perpetual inventory system; If we take goods for own use we should:

• A) Debit - Drawings Account: Credit - Purchases Account
• B) Debit - Drawings Account: Credit - Stock Account
• C) Debit - Purchases Account: Credit - Drawings Account
• D) Debit - Sales Account: Credit - Stock Account

What will be the affect of dividends paid on the book value of a company?

• A) It depends upon the situation
• B) It will increase
• C) It will decrease
• D) It will heave no effect

Accelerated depreciation method is mostly used for ____________.

• A) Inventory valuation
• B) Assets valuation
• C) Financial statements
• D) Income tax returns

Suppose that an investor buys shares for Rs. 15 per share from a company whose stock's par value is stated at Rs. 10 per share, then what will be the value of paid in capital for each share sold?

• A) Rs. 15
• B) Rs. 5
• C) Rs. 10
• D) Rs. 25

Even though LIFO generally results in lower reported earnings, firms will use LIFO because it will:

• A) Decrease cash flows due to lower taxes
• B) Decrease cash flows due to higher taxes
• C) Increase cash flows due to lower taxes
• D) Increase cash flows due to higher taxes

ABC Company sold a plant asset that originally cost Rs. 60,000 for Rs. 25,000 cash. If the company correctly reports a Rs. 5,000 gain on this sale, the accumulated depreciation on the asset at the date of sale must have been:

• A) Rs. 40,000
• B) Rs. 25,000
• C) Rs. 35,000
• D) Rs. 55,000

Under the income statement approach to adjusting entries, the receipt of Rs. 5,000 of unearned revenue would be recorded by debiting Cash. Which account should be credited?

• A) Prepaid Revenue
• B) Unearned Revenue
• C) Revenue
• D) Cash

Which of the following is another name of the authorized capital?

• A) Outstanding capital
• B) Registered capital
• C) Paid in capital
• D) Listed capital

How would the sale of merchandise on account be represented in the seller's records?

• A) Increase assets and decrease liabilities
• B) Increase assets and increase paid-in capital
• C) Increase assets and increase income
• D) Increase assets and decrease revenues

If the ending inventory is understated in the year; the cost of goods sold will be _______ and gross profit __________.

• A) Understated, understated
• B) Overstated, understated
• C) Overstated, Overstated
• D) Understated, Overstated