Advanced Corporate Accounting MCQs [set-1]

1. _______________ are the financial statements of a group of companies.

A. Subsidiary Accounts

B. Group Accounts

C. Holding Accounts

D. None of the above

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Answer: B
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2. ___________ establishes principles for presenting and preparing
consolidated financial statements when an entity controls one or more
other entities. c
A. IFRS 12
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B. IFRS 17

C. IFRS 10

D. IFRS 11

Answer: C

3. A _________ includes the income and expenses of a subsidiary in the

consolidated 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

Answer: B

4. ______________ is an asset representing the future economic benefits

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arising 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

Answer: A

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5. ___________ transactions are transactions between entities within a
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group of entities and that group is consolidated into one set of
Consolidated Financial Statements.
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A. Inter-group
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B. Intra-group
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C. Group M
D. Financial

Answer: B

6. The _____________ account appear in the Balance Sheet of the Holding

company at the time of consolidation.

A. Bonus Share

B. Security Premium

C. share premium

D. Capital Reserve

Answer: C

7. __________ is the corporate management term for the act of

reorganizing the 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

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 B. Restructuring

C. External Reconstruction

D. Consolidation

Answer: B

8. A merger is defined as the joining of two or more companies to form a

single legal entity.

A. Acquisition

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B. Restructuring
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C. Merger
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D. Internal Construction

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Answer: C
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9. All business combinations must be treated as _________ for accounting
purposes.

A. Acquisition

B. Restructuring

C. Merger

D. Internal Construction

Answer: A

10. In external reconstruction, the liquidated company is called

______________________.

A. Purchasing Company

B. Vendor Company

C. Holding Company

D. Group Company

Answer: B

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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

Answer: C

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12. The objective of ________________is to prescribe, for lessees and
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lessors, the appropriate accounting policies and disclosures to apply in
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relation to finance and operating leases.

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A. IAS 11
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B. IAS 17
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C. IAS 7

D. IAS 19

Answer: B

13. In finance lease agreement, the option for the lessee to purchase the
property or equipment at a specific price is known as
__________________________.

A. Balloon

B. Operating Leasing

C. Running Cost

D. Administrative Expense

Answer: A

14. ________________ provides information to the management regarding

human resource cost and value.

A. MIS

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 B. Human Resource Accounting

C. Financial Statements

D. Cost Sheet

Answer: B

15. ______________________is the assistance of finance professionals to

settle disputes concerning allegations, fraudulence, suspicion of fraud
and misconduct in business.

A. Forensic accounting
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B. Human Resource Accounting
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C. Financial Accounting a
D. Cost Accounting
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Answer: A c
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16. ____________ aims to measure and inform the general public about the
social welfare activities undertaken by the enterprise and their effects on
the society

A. Corporate Accounting

B. Forensic Accounting

C. Social Audit

D. Environmental Accounting

Answer: C

17. ________________ also called green accounting.

A. Corporate Social Responsibility

B. Corporate Accounting

C. Environmental accounting

D. Forensic Accounting

Answer: C

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18. ______________manages business finances effectively, make the right
decisions and maximize your profits.

A. Corporate Accounting

B. Inflation Accounting

C. Environmental Accounting

D. Proactive Accounting

Answer: D

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19. _____________ refers to the process of adjusting the financial
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statements of a company to show the real financial position of the
company during the inflationary period. a
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A. Corporate Accounting
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B. Inflation Accounting
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C. Environmental Accounting

D. Proactive Accounting

Answer: B

20. Increase in the price of various goods and services over a period of
time is known as ___________________

A. Deflation

B. Price Level Changes

C. Shift

D. Inflation

Answer: D

21. During inflation the purchasing power of money ___________________.

A. Increases

B. Does not change

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 C. Shift

D. Decreases

Answer: A

22. Price for changes accounting can be done by the following

method__________________.

A. Current purchasing power, Current Value Accounting

B. Replacement Cost Accounting, Current Cost Accounting

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C. Both a and b
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D. None of the Above
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Answer: C

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23. _________________Accounting
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management in an organization.

A. Inflation

B. Human Resource

C. Environment

D. Forensic

Answer: B

24. Forensic Accounting is very much useful to _____________ industry.

A. Banking

B. Communication

C. Insurance

D. None of the above

Answer: C

25. A branch of accounting which decodes the human nature to hide

failures, conceal problems, defend wrong decisions, and cover up

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mistakes is known as___________________.

A. Inflation Accounting

B. Human Resource Accounting

C. Environment Accounting

D. Forensic Accounting

Answer: D

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