Test: Accounting As A Measurement Discipline- 1

Question 1

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

Accepted Answer

Current Cost.

Answer

Historical Cost.

Answer

Present value.

Answer

Reaslisable Value.

Question 2

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

Accepted Answer

Intangible assets

Answer

Current assets

Answer

Fixed assets

Answer

Investments

Question 3

Mohan purchased a machinery amounting Rs. 10,00,000 on 1^st April, 2001. On 31^st 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:

Accepted Answer

Rs. 10,00,000

Answer

Rs. 20,00,000

Answer

Rs. 15,00,000

Answer

Rs. 12,00,000

Question 4

Change in Accounting estimate means:

Accepted Answer

Both (a) and (b)

Answer

Difference arising between certain parameters estimated earlier and re-estimated during the current period.

Answer

Difference arising between certain parameters estimated earlier and actual results achieved during current period.

Answer

Difference arising between certain parameters during the current period and actual results achieved during the previous period.

Question 5

ABC Ltd. purchased a building by paying Rs 50,00,000 as on 1^st April, 2000. On 1^st 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 :

Accepted Answer

Current Cost

Answer

Historical Cost

Answer

Realizable value

Answer

Present Cost

Question 6

Change in accounting estimate means :

Accepted Answer

Both (b) and (c)

Answer

Differences arising between certain parameters re-estimated during the current period and actual results achieved during the current period

Answer

Differences arising between certain parameters estimated earlier and re-estimated during the current period

Answer

Differences arising between certain parameters estimated earlier and actual results achieved during the current period

Question 7

Gross Book value of a Fixed Asset is its:

Accepted Answer

Historical Cost

Answer

Cost less depreciation

Answer

Fair Market Value

Answer

Realizable value

Question 8

Change in accounting estimate means:

Accepted Answer

Both (a) and (b)

Answer

Differences arising between certain parameters estimated earlier and re- estimated during the current period.

Answer

Differences arising between certain parameters estimated earlier and actual results achieved during the current period.

Answer

Differences arising between certain parameters re-estimated during the current period and actual results achieved during the current period.

Question 9

Mohan purchased a machinery amounting Rs. 10,00,000 on 1^st April, 2001. On 31^st 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:

Accepted Answer

Rs. 15,00,000

Answer

Rs. 10,00,000

Answer

Rs. 20,00,000

Answer

Rs. 12,00,000

Question 10

Mohan purchased a machinery amounting Rs. 10,00,000 on 1^st April, 2001. On 31^st 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

Accepted Answer

Rs.12,00,000.

Answer

Rs. 10,00,000.

Answer

Rs.20,00,000.

Answer

Rs.15,00,000.

Question 11

All of the following are valuation principles except:

Accepted Answer

Future value

Answer

Historical Cost

Answer

Present value

Answer

Realizable value

Question 12

In Accounting Money is the :

Accepted Answer

Scale of Measurement

Answer

Measurement Value

Answer

Scale of Social Measurement

Answer

Store of Value

Question 13

Mohan purchased a machinery amounting Rs. 10,00,000 on 1^st April, 2001. On 31^st 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:

Accepted Answer

Rs. 20,00,000

Answer

Rs. 10,00,000

Answer

Rs. 15,00,000

Answer

Rs. 12,00,000

Question 14

There are ________generally accepted measurement bases or valuation principles :

Accepted Answer

Four

Answer

Two

Answer

Three

Answer

Five

Question 15

Measurement discipline deals with:

Accepted Answer

All of the above.

Answer

Identification of objects and events.

Answer

Selection of scale.

Answer

Evaluation of dimension of measurement scale.

Accounting As A Measurement Discipline- 1 - Free MCQ Practice Test

MCQ Practice Test & Solutions: Test: Accounting As A Measurement Discipline- 1 (15 Questions)

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

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

Change in Accounting estimate means:

ABC Ltd. purchased a building by paying Rs 50,00,000 as on 1^st April, 2000. On 1^st 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 :

Change in accounting estimate means :

Gross Book value of a Fixed Asset is its:

Change in accounting estimate means:

All of the following are valuation principles except:

In Accounting Money is the :

There are ________generally accepted measurement bases or valuation principles :

Measurement discipline deals with:

Accounting for CA Foundation

Accounting for CA Foundation

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Accounting As A Measurement Discipline- 1 - Free MCQ Practice Test

MCQ Practice Test & Solutions: Test: Accounting As A Measurement Discipline- 1 (15 Questions)

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?

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

Change in Accounting estimate means:

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 :

Change in accounting estimate means :

Gross Book value of a Fixed Asset is its:

Change in accounting estimate means:

All of the following are valuation principles except:

In Accounting Money is the :

There are ________generally accepted measurement bases or valuation principles :

Measurement discipline deals with:

Accounting for CA Foundation

Accounting for CA Foundation

Top Courses for CA Foundation

About this CA Foundation Practice Test

Explore more CA Foundation Study Resources

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

ABC Ltd. purchased a building by paying Rs 50,00,000 as on 1^st April, 2000. On 1^st 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 :