Page 47 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

AIFS.14 SM21
All inventory units held by the audit entity and that should have been recorded, have been

recognized in the financial statements. The assertion involved is:
a) Existence
b) Completeness
c) Rights and Obligations
d) Valuation

AIFS.15 SM21/M23M
_________are charges against profits to provide for known liabilities for which amounts cannot be
determined with accuracy

a) Contingent Liabilities
b) Provision
c) Securities Premium Reserve.
d) Liabilities

AIFS.18 SM21/M22M/M23R
Which of the following is not correct:-
a) AS 18 – Related Party Disclosures
b) AS 10 – Property, Plant & Equipment
c) AS 28 – Impairment of Assets
d) AS 16 – Intangible Assets

AIFS.19 SM21
Which of the following item should not be treated as an asset, as per provisions of Accounting
Standard 26 :

a) Computer software
b) Internally generated goodwill
c) Fishing License
d) Brand Names

AIFS.20 M21R
………..is a possible obligation that arises from the past events and whose existence will be
confirmed only by the occurrence/ non-occurrence of one or more uncertain future events not
wholly within the control of the entity:-
a) Provisions
b) Reserves
c) Contingent Liabilities
d) Liability

AIFS.21 N21M
Statement I : A capital reserve cannot be utilised for writing down fictitious assets or losses or
(subject to provisions in the Articles) for issuing bonus shares if it is realized.
Statement II : The amount of securities premium or capital redemption reserve account can be
utilised only for the purposes specified in Sections 52 and 55 of the Companies Act, 2013,
respectively.
a) only Statement I is correct
b) only Statement II is correct
c) both the statements are correct
d) both the statements are incorrect.

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