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CA Inter Framework for preparation and presentation of financial statements — practice questions — page 2

Explore 56 free Framework for preparation and presentation of financial statements questions in CA Inter Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Framework for preparation and presentation of financial statements questions and exercises with answers

Showing questions 31–56 of 56.

How is accrued revenue shown on the balance sheet?Read the answer and worked solution →A debit entry does what?Read the answer and worked solution →Which is usually a long-term liability?Read the answer and worked solution →The foreseeable future for a going concern is usually at least how long?Read the answer and worked solution →Which basis is used when an entity's liquidation becomes imminent?Read the answer and worked solution →Going concern lets a firm do what with prepaid expenses?Read the answer and worked solution →Compared with its breakup value, a going concern's value is generally what?Read the answer and worked solution →Which is a sign of doubt over an entity's going concern status?Read the answer and worked solution →Which ISA covers going concern reporting of material uncertainty?Read the answer and worked solution →Income earned but not yet received is termed what?Read the answer and worked solution →Goods are delivered this year but paid next year. When is revenue recognised?Read the answer and worked solution →Which liability has the most uncertain timing or amount?Read the answer and worked solution →At historical cost: cost Rs 1,00,000, market Rs 1,20,000, sold Rs 1,15,000. Gain?Read the answer and worked solution →In the cost of PPE, how are trade discounts treated?Read the answer and worked solution →Under IFRS, revaluing PPE to fair value is what?Read the answer and worked solution →How are derivative financial instruments reported under IFRS and US GAAP?Read the answer and worked solution →IAS 29 deals with reporting in which type of economy?Read the answer and worked solution →Cumulative inflation of what level over three years may signal hyperinflation?Read the answer and worked solution →Cost 1,000; sale 1,150; replacement cost 1,100. Profit on replacement basis?Read the answer and worked solution →In which year was the Accounting Standards Board constituted?Read the answer and worked solution →Ind AS are named and numbered in line with which standards?Read the answer and worked solution →Mandatory Ind AS from April 2016 applied to net worth of at least?Read the answer and worked solution →Once a company follows Ind AS, can it revert to the old method?Read the answer and worked solution →Which standards for computing taxable income were notified in February 2015?Read the answer and worked solution →Ind AS 107 deals with disclosures on which subject?Read the answer and worked solution →Before Ind AS, which accounting framework did Indian companies follow?Read the answer and worked solution →

Worked practice questions

How is accrued revenue shown on the balance sheet?

  1. As accounts receivable
  2. As share capital
  3. As accounts payable
  4. As retained earnings
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Correct answer: A. As accounts receivable

Income earned but not yet collected is a claim on the customer, so it appears as a receivable.

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A debit entry does what?

  1. Raises assets or cuts liabilities
  2. Cuts assets or raises liabilities
  3. Increases assets and liabilities
  4. Decreases assets and liabilities
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Correct answer: A. Raises assets or cuts liabilities

By double-entry convention a debit raises an asset account or reduces a liability account.

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Which is usually a long-term liability?

  1. Taxes due this quarter
  2. Trade accounts payable
  3. Issued long-term bonds
  4. Wages due this month
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Correct answer: C. Issued long-term bonds

Bonds repayable after more than a year are not expected to be settled within the operating cycle.

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More Accounting topics

AS 3 Cash Flow StatementSchedule III Division I Financial StatementsAS 19 LeasesValuation of Inventories (AS 2)AS 22 Taxes on IncomeAS 28 Impairment of AssetsProperty, Plant and EquipmentAS 17 Segment Reporting