Which Of The Following Is An Example Of A Change In Accounting Principle?

Test: Bookkeeping Policies

15 Questions MCQ Exam Fundamentals of Accounting for CA CPT | Examination: Bookkeeping Policies

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Accounting principles and policies are to be standardised to achieve:

A.
Transparency
B.
Consistency
C.
Comparability
D.
All of theses

Solution:

Accounting policies refer to specific accounting

A.
Principles.
B.
Methods of applying those principles.
C.
Both (a) and (b).
D.
None of the above.

Solution:

Pick of an inappropriate accounting policy may lead to :

A.
Understatement of Functioning
B.
Overstatement of Performance
C.
Understatement or Overstatement of Financial Position
D.
None of the above

Solution:

Which is not an instance of an bookkeeping policy:

A.
Going Concern
B.
Valuation of Stock-still Avails
C.
Treatment of Retirement Benefits
D.
Valuation of Inventories

Solution:

The areas wherein different accounting policies can exist adopted are

A.
Providing depreciation.
B.
Valuation of inventories.
C.
Valuation of investments.
D.
All of the above.

Solution:

A Modify in accounting Policy is justified

A.
To comply with accounting standard.
B.
To ensure more appropriate presentation of the financial statement of the enterprise
C.
To comply with police force.
D.
All of the above.

Solution:

Which of the following is not an case of change in accounting policy?

A.
Alter in method of providing depreciation on fixed avails.
B.
Change in the method of providing inventory valuation.
C.
Adopting double Entry system of bookkeeping in place of Single Entry.
D.
Change in method of valuation of Investments.

Solution:

A.
Are prescribed by AS ane
B.
Are laid downwards by Law
C.
Are same for all concerns
D.
Changing from business organization to concern

Solution:

A change in Accounting Policy is justified to :

A.
Comply with accounting standard
B.
Comply with Law
C.
Ensure more than appropriate presentation of Fiscal Statements
D.
All of the in a higher place

Solution:

Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?

A.
Materiality.
B.
Prudence.
C.
Substance over form.
D.
All of above.

Solution:

The area wherein different accounting policies can be adopted are:

A.
Valuation of inventories
B.
Retirement benefits
C.
Handling of goodwill
D.
All of the above.

Solution:

Every bit per AS one disclosure should form role of :

A.
The Final Accounts
B.
The Accountant's Report
C.
The Director's Report
D.
The Books of Accounts

Solution:

Choice of an inappropriate accounting policy conclusion may

A.
Overstate the functioning and financial position a business entity.
B.
Understate/enlarge the performance and financial position a business organization entity.
C.
Overstate the performance a business organization entity.
D.
Understate financial position a business concern entity.