Test: Accounting As A Measurement Discipline- 1


15 Questions MCQ Test Principles and Practice of Accounting | Test: Accounting As A Measurement Discipline- 1


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QUESTION: 1

Book value of machinery on 31st March, 2011      10,00,000
Market value as on 31st March, 2011                   11,00,000
As on 31st March, 2011, if the company values the machinery
At Rs. 11,00,000 which of the following valuation principle is being followed?

Solution:
QUESTION: 2

The long term assets that have no physical existence but are rights that have value is known as

Solution:
QUESTION: 3

Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2001. On 31st March, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.

Q. The historical cost of machinery is:

Solution:
QUESTION: 4

 Change in Accounting estimate means:

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QUESTION: 5

ABC Ltd. purchased a building by paying Rs 50,00,000 as on 1st April, 2000. On 1st April, 2007 it found that it would cost Rs. 1,50,00,000 to purchase the similar building. This value of Rs. 1,50,00,000 is known as : 

Solution:
QUESTION: 6

Change in accounting estimate means : 

Solution:
QUESTION: 7

Gross Book value of a Fixed Asset is its: 

Solution:
QUESTION: 8

 Change in accounting estimate means:

Solution:
QUESTION: 9

Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2001. On 31st March, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.

Q. The realizable value of machinery is:

Solution:
QUESTION: 10

Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2001. On 31st March, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.

Q. The present value of machinery is 

Solution:
QUESTION: 11

All of the following are valuation principles except: 

Solution:
QUESTION: 12

In Accounting Money is the : 

Solution:
QUESTION: 13

Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2001. On 31st March, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.

Q. The current cost of the machinery is:

Solution:
QUESTION: 14

There are ________generally accepted measurement bases or valuation principles : 

Solution:
QUESTION: 15

Measurement discipline deals with:

Solution: