Welcome to a comprehensive exploration of the CA Intermediate New Course - Advanced Accounting, focusing specifically on the intricacies of Framework for Preparation and Presentation of Financial Statements. In this blog post, we're diving deep into the realm of objective-based questions – the perfect tool to sharpen your understanding of this critical subject.
As you journey through the world of accounting standards, we've curated a set of targeted Multiple-Choice Questions (MCQs) to serve as your practice companion. Whether you're gearing up for exams or looking to reinforce your grasp on these standards, this blog is designed with your success in mind.
The CA Intermediate New Course demands a thorough understanding of Framework for Preparation and Presentation of Financial Statements, and our objective-based questions are crafted to align with this requirement. From the conceptual foundation to practical applications, we're here to guide you every step of the way.
Join us on this learning adventure as we navigate through the nuances of Advanced Accounting and elevate your preparation with strategic MCQs. Our goal is to empower you with knowledge, boost your confidence, and equip you for success in your CA Intermediate journey.
Question 1: Liabilities are recorded at the undiscounted amount of cash expected to be paid on settlement of liability in the normal course of business under:
- a) Present value.
- b) Realizable value.
- c) Current cost.
- d) Fair value.
Question 2: Which of the following are underlying assumptions of financial statements?
- a) Relevance and reliability.
- b) Financial capital maintenance and physical capital maintenance.
- c) Accrual basis and going concern.
- d) Prudence and conservatism.
Question 3: Framework for preparation and presentation of financial statements suggests that the financial statements should observe
- a) Understandability.
- b) Relevance.
- c) Reliability.
- d) All the three.
Question 4: Which of the assumptions is not considered as a fundamental accounting assumption?
- a) Going Concern.
- b) Accrual.
- c) Reliability.
- d) Comparability.
Question 5: A machine was acquired in exchange for an old machine, and `20,000 paid in cash. The carrying amount of the old machine was `2,00,000, whereas its fair value was `1,50,000 on the date of exchange. The historical cost of the new machine will be taken as:
- a) `2,00,000.
- b) `1,70,000.
- c) `2,20,000.
- d) `1,80,000.
Question 6: An item that meets the definition of an element of financial statements should be recognized in the financial statements if:
- a) It is probable that any future economic benefit associated with the item will flow to the enterprise.
- b) The item has a cost or value that can be measured with reliability.
- c) Both a and b.
- d) It is probable that no future economic benefit associated with the item will flow to the enterprise.
Question 7: The 'going concern' concept assumes that:
- a) The business can continue in operational existence for the foreseeable future.
- b) The business cannot continue in operational existence for the foreseeable future.
- c) The business is continuing to be profitable.
- d) The business cannot continue if it is not able to earn profits.
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Question 8: Two principal qualitative characteristics of financial statements are:
- a) Understandability and materiality.
- b) Relevance and reliability.
- c) Relevance and materiality.
- d) Comparability and materiality.
Question 9: All of the following are components of financial statements except:
- a) Balance sheet.
- b) Statement of Profit and loss.
- c) Human responsibility report.
- d) Social responsibility report.
Question 10: An accounting policy can be changed if the change is required:
- a) By statute or accounting standard.
- b) For more appropriate presentation of financial statements.
- c) Both (a) and (b).
- d) By statute as well as accounting standards.
Question 11: Value of equity may change due to:
- a) Contribution from or Distribution to equity participants.
- b) Income earned.
- c) Expenses incurred.
- d) All the three.
In the dynamic landscape of CA Intermediate studies, we've strived to enhance your learning experience with our meticulously crafted objective-based questions. Navigating through the chapters of Advance Accounting and Business Growth, specifically delving into the nuances of Introduction to Framework for Preparation and Presentation of Financial Statements, our comprehensive set of MCQs aims to provide you with a quick yet thorough revision before your examination.
Remember, success in CA Intermediate requires not just theoretical understanding but also a strategic approach to mastering key concepts. We hope these tailored questions become a valuable asset in your preparation, aiding you in your journey to conquer the CA Intermediate examination.
Best wishes for your exams! 🌟
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