Solved Accounting Standards and GAAP (Accounting

Accounting Standards and GAAP MCQs for Competitive Exams

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Topic Notes: Accounting Standards and GAAP

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Accounting Standards and GAAP MCQs in Commerce are useful for candidates who need targeted practice for CSS, PMS, FPSC, PPSC, NTS, entry tests, and other competitive exams in Pakistan. This topic page is designed for quick revision, repeated practice, and exam-focused preparation.

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Which professional body was responsible for the establishment of the Accounting Standard Board?

Government of India

Institute of Company Secretaries of India

Institute of Chartered Accountants of India

Institute of Cost and Works Accountants of India

Report

According to accounting standards for construction contracts, which costs are generally attributable to contract activity and can be allocated to specific contracts?

1, 3 and 5

2, 3 and 4

1, 2 and 3

3, 4 and 5

Report

Under Ind AS, what are the specific conditions that exempt a parent company from the requirement to prepare consolidated financial statements?

Both 2 and 3

Both 1 and 2

All of these

Both 1 and 3

Report

What term defines the universally accepted rules of action or conduct followed by accountants when recording transactions?

None of these

Accounting principles

Accounting convention

Accounting concepts

Report

Which of the following practices is not considered a Generally Accepted Accounting Principle (GAAP)?

Non-recurring and extraordinary gains and losses should be recognised in the period they accrue, but should be shown separately from the usual operations

There must be proper cut off accounting for inventories and liabilities for costs and expenses

Sales, revenues and incomes should not be anticipated or materially overstated

Long-term investments in securities should ordinarily be carried at market quotations

Report

Which inflation accounting method was formally recommended by the Sandilands Committee in the United Kingdom?

Generally Accepted Accounting Principles

General Price Level Method

Specific Price Level Method

Current Cost Accounting Method

Report

Which accounting standard governs the preparation of a consolidated Balance Sheet for a holding company and its subsidiary?

AS 21

AS 23

AS 22

AS 11

Report

Which of the following statements accurately describes the role and purpose of accounting standards?

Accounting standards codify the generally accepted accounting principles

All of the above

Accounting standards lay down the norms of accounting policies and practices by way of codes or guidelines

The main purpose of accounting standards is to provide information to the user on the basis of which the accounts have been prepared

Report

Which specific entities are excluded from the scope of AS-37 regarding contingent liabilities?

small business

listed companies

unlisted companies

insurance companies

Report

Under the Current Cost Accounting (CCA) method, where should the surplus or deficit arising from asset revaluation be adjusted?

Revaluation Reserve A/c

General Reserve A/c

None of the above

Profit and Loss statement

Report

Accounting Standards and GAAP MCQs for Competitive Exams

Accounting Standards and GAAP MCQs for Competitive Exams

Topic Notes: Accounting Standards and GAAP

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