MCQ for CA Intermediate Adv. Accounts - Chapter 1 - APPLICATION OF ACCOUNTING STANDARDS

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 5 - ADVANCED ACCOUNTING - Chapter 1: APPLICATION OF ACCOUNTING STANDARDS - For Practice relevant for May/November 23 Examinations

 

Q1. AB Company Ltd. had 1,00,000 shares of common stock outstanding on January 1. Additional 50,000 shares were issued on July 1, and 25,000 shares were re-acquired on September 1. The weighted average number of shares outstanding during the year on Dec. 31 is

  1. 1,40,000 shares.
  2. 1,25,000 shares.
  3. 1,16,667 shares.

Answer: 3

Q2.  As per AS 20, potential equity shares should be treated as dilutive when, and only when, their conversion to equity shares would

  1. Decrease net profit per share from continuing ordinary operations.
  2. Increase net profit per share from continuing ordinary operations.
  3. Make no change in net profit per share from continuing ordinary operations.

Answer: 1

Q3.  As per AS 17, reportable segments are those whose total revenue from external sales and inter-segment sales is

  1. 10% or more of the total revenue of all segments
  2. 15% or more of the total revenue of all segments
  3. 20% or more of the total revenue of all segments

Answer: 1

Q4.  As per AS 20, equity shares which are issuable upon the satisfaction of certain conditions resulting from contractual arrangements are

  1. Dilutive potential equity shares
  2. Contingently issuable shares
  3. Contractual issued shares

Answer: 2

Q5.  As per AS 26 there is a rebuttable presumption that the useful life of an intangible asset will not exceed

  1. 2 years
  2. 5 years
  3. 10 years

Answer: 3

Q6.  A company receives the membership fee which entitles the members to services or publications to be provided during the year. It should be

  1. capitalized
  2. recognised on a systematic and rational basis having regard to the timing and nature of all services provided.
  3. Recognized over period of 5 years

Answer: 2

 

CA Intermediate ADV. ACCOUNTS - MCQ for Chapter 2 -   

To get back to the Chapterwise MCQ List Page       

Hope you can find this article helpful. If you did like the content then Share it with your friends who are preparing for CA Inter Exams or who will be giving their CA Inter Exams in the near future.