Advanced Corporate Accounting MCQs : This section focuses on the "Advanced Corporate Accounting". These Multiple Choice Questions (MCQs) should be practiced to improve the Advanced Corporate Accounting skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.
Question 1
_______________ are the financial statements of a group of companies.
A. Subsidiary Accounts
B. Group Accounts
C. Holding Accounts
D. None of the above
Question 2
___________ establishes principles for presenting and preparingconsolidated financial statements when an entity controls one or more other entities.
A. IFRS 12
B. IFRS 17
C. IFRS 10
D. IFRS 11
Question 3
A _________ includes the income and expenses of a subsidiary in theconsolidated financial statements from the date it gains control until the date when the reporting entity ceases to control the subsidiary.
A. Holding entity
B. Reporting entity
C. Group Accounts
D. AS 110
Question 4
______________ is an asset representing the future economic benefitsarising from other assets acquired in a business combination that are not individually identified and separately recognized.
A. Goodwill
B. Capital Reserve
C. Plant and Machinery
D. Drawings
Question 5
___________ transactions are transactions between entities within a groupof entities and that group is consolidated into one set of Consolidated Financial Statements.
A. Inter-group
B. Intra-group
C. Group
D. Financial
Question 6
The _____________ account appear in the Balance Sheet of the Holdingcompany at the time of consolidation.
A. Bonus Share
B. Security Premium
C. share premium
D. Capital Reserve
Question 7
__________ is the corporate management term for the act of reorganizingthe legal, ownership, operational or other structures of a company for the purpose of making it more profitable or better organized for its present needs.
A. Merger
B. Restructuring
C. External Reconstruction
D. Consolidation
Question 8
A merger is defined as the joining of two or more companies to form asingle legal entity.
A. Acquisition
B. Restructuring
C. Merger
D. Internal Construction
Question 9
All business combinations must be treated as _________ for accountingpurposes.
A. Acquisition
B. Restructuring
C. Merger
D. Internal Construction
Question 10
In external reconstruction, the liquidated company is called______________________.
A. Purchasing Company
B. Vendor Company
C. Holding Company
D. Group Company
Question 11
The tax effect on the timing differences is termed as ___________________.
A. Current Tax expense
B. Income tax
C. Deferred Tax
D. Provision for tax
Question 12
The objective of ________________is to prescribe, for lessees and lessors,the appropriate accounting policies and disclosures to apply in relation to finance and operating leases.
A. IAS 11
B. IAS 17
C. IAS 7
D. IAS 19
Question 13
In finance lease agreement, the option for the lessee to purchase theproperty or equipment at a specific price is known as __________________________.
A. Balloon
B. Operating Leasing
C. Running Cost
D. Administrative Expense
Question 14
________________ provides information to the management regardinghuman resource cost and value.
A. MIS
B. Human Resource Accounting
C. Financial Statements
D. Cost Sheet
Question 15
______________________is the assistance of finance professionals to settledisputes concerning allegations, fraudulence, suspicion of fraud and misconduct in business.
A. Forensic accounting
B. Human Resource Accounting
C. Financial Accounting
D. Cost Accounting
Question 16
____________ aims to measure and inform the general public about thesocial welfare activities undertaken by the enterprise and their effects on the society
A. Corporate Accounting
B. Forensic Accounting
C. Social Audit
D. Environmental Accounting
Question 17
________________ also called green accounting.
A. Corporate Social Responsibility
B. Corporate Accounting
C. Environmental accounting
D. Forensic Accounting
Question 18
______________manages business finances effectively, make the rightdecisions and maximize your profits.
A. Corporate Accounting
B. Inflation Accounting
C. Environmental Accounting
D. Proactive Accounting
Question 19
_____________ refers to the process of adjusting the financial statements ofa company to show the real financial position of the company during the inflationary period.
A. Corporate Accounting
B. Inflation Accounting
C. Environmental Accounting
D. Proactive Accounting
Question 20
Increase in the price of various goods and services over a period of time isknown as ___________________
A. Deflation
B. Price Level Changes
C. Shift
D. Inflation
Question 21
During inflation the purchasing power of money ___________________.
A. Increases
B. Does not change
C. Shift
D. Decreases
Question 22
Price for changes accounting can be done by the followingmethod__________________.
A. Current purchasing power, Current Value Accounting
B. Replacement Cost Accounting, Current Cost Accounting
C. Both a and b
D. None of the Above
Question 23
_________________Accounting deals with employees and management inan organization.
A. Inflation
B. Human Resource
C. Environment
D. Forensic
Question 24
Forensic Accounting is very much useful to _____________ industry.
A. Banking
B. Communication
C. Insurance
D. None of the above
Question 25
A branch of accounting which decodes the human nature to hide failures,conceal problems, defend wrong decisions, and cover up mistakes is known as___________________.
A. Inflation Accounting
B. Human Resource Accounting
C. Environment Accounting
D. Forensic Accounting
Question 26
A ______________Accounting signifies the activities related to theconservation of Environment.
A. Inflation
B. Human Resource
C. Environment
D. Forensic
Question 27
The main elements of environmental accountingare______________________.
A. Environmental Conservation costs and activities and environmental benefits
B. Environmental activities and environmental benefits
C. Environmental conversion costs and environmental benefits
D. None of the above
Question 28
What is the classical view of management's social responsibility?
A. To create specific environment in work place
B. To maximize profit
C. To protect and improve society’s welfare
D. All of the above
Question 29
__________ is when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities
A. SocialObligation
B. Social Responsibility
C. Social Responsiveness
D. None of the above
Question 30
The recognition of the close link between an organisation's decisions andactivities and its impact on the natural environment is called __________.
A. Global Environment
B. Greening of management
C. Social actions
D. None of the above
Question 31
The stakeholder view of social responsibility states that organisations mustrespond to the needs of
A. employees and customers
B. shareholders and owners
C. all interested parties
D. all those who might sue the organisation
Question 32
_____________ establishes the principles that an entity applies whenreporting information about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer.
A. IFRS 18
B. IFRS 14
C. IFRS 15
D. IFRS 17
Question 33
The objective of _________ is to establish the principles that an entity shallapply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.
A. Ind AS 115
B. Ind AS 100
C. Ind AS 110
D. Ind AS 114
Question 34
_________is about the measurement of the items in the consolidatedfinancial statements, such as goodwill, non-controlling interest, etc.
A. IFRS 4
B. IFRS 10
C. IFRS 9
D. IFRS 3
Question 35
Goodwill on amalgamation can rise only if ________Method is followed.
A. Valuation
B. Percentage
C. Purchase
D. Merger
Question 36
_____________ is the process of significantly changing a company'sbusiness model, management team or financial structure to address challenges and increase shareholder value.
A. Corporate restructuring
B. Corporate reporting
C. Amalgamation
D. Reconstruction
Question 37
A merger of two or more companies that compete in the same industry.
A. Horizontal
B. Conglomerate
C. Vertical
D. None of the above
Question 38
Merger where two companies are in the same or related industries but do notoffer the same products, but related products and may share similar distribution channels, providing synergies for the merger is known as ____________ Merger.
A. Horizontal
B. Co generic
C. Vertical
D. Conglomerate
Question 39
A form of corporate restructuring in which the entity's business operationsare segregated into one or more components is known as __________________.
A. Horizontal
B. Disinvestment
C. Demerger
D. Takeover
Question 40
When one company takes over the management of the target company withthe permission of the board, it is known as ________________ takeover.
A. Friendly
B. Hostile
C. Acquiring
D. Disinvestment
Question 41
Any agreement between two or more parties to collaborate with each other,in order to achieve certain objectives while continuing to remain independent organizations is called _______________.
A. Strategic alliance
B. Franchising
C. Joint Venture
D. Disinvestment
Question 42
________________accounting is the process by which companies andorganizations record the financial impact of agreements to rent or finance the rights to use specific assets.
A. Corporate
B. Responsibility
C. Green
D. Lease
Question 43
A ______________ is defined as an entity that provides the right to use anasset for a period of time in exchange for consideration.
A. Contractor
B. lessor
C. Lessee
D. None of the above
Question 44
A ____________ is a lease that transfers substantially all the risks andrewards incidental to ownership of an asset. Title may or may not eventually be transferred.
A. Finance lease
B. Operating lease
C. Lessor
D. Contract
Question 45
____________ is the estimated remaining period, from the commencement ofthe lease term, without limitation by the lease term, over which the economic benefits embodied in the asset are expected to be consumed by the entity.
A. Economic Life
B. Useful Life
C. Fair value
D. None of the above
Question 46
______________ is a term used in the field of accounting which measuresthe environmental and natural resources accounting, which tends to incorporate the natural and environmental assets of the firm and it’s resources.
A. Social Accounting
B. Green Accounting
C. Inflation Accounting
D. None of the above
Question 47
_________ highlights both the contribution of business enterprises toeconomic wellbeing and the costs imposed in the form of pollution or resource degradation.
A. Social Accounting
B. Environmental Accounting
C. Inflation Accounting
D. None of the above
Question 48
_______________ is concerned with the development of measurementsystem to monitor social performance.
A. Social Accounting
B. Environmental Accounting
C. Inflation Accounting
D. None of the above
Question 49
__________ is the method were all assets and liabilities are recorded on abalance sheet according to the cost of replacing them rather than their historical costs.
A. Replacement Cost Accounting
B. Current Value
C. Current Cost Accounting
D. None of the above
Question 50
___________ acts as an evidence of social commitment.
A. Social Accounting
B. Environmental Accounting
C. Inflation Accounting
D. None of the above