All MCQs for Competitive Exams

951

On what date was the initial phase of the PIFRA (Project to Improve Financial Reporting and Auditing) successfully concluded?

A

31st December, 2004

B

31st December, 2006

C

31st December, 2007

D

31st December, 2005

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952

Under AS 3 (Revised), what components are included in the definition of cash funds?

A

financial

B

Cash equivalent

C

Cash inflow, cash outflow

D

Cash equivalents

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953

If the budgeted input price is $80 and the price variance is $40, what is the actual price?

A

$40

B

$60

C

$120

D

$20

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954

In what year was the Project to Improve Financial Reporting and Auditing (PIFRA) initiated?

A

1996

B

1993

C

1995

D

1994

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955

What is the full form of the acronym GAAP in the context of accounting standards?

A

Grand Accounting Affects People

B

Generally acknowledged accounting principles

C

Generic Advice on Accounting Principles

D

Generally accepted accounting principles

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956

When assets are acquired by foreign branches on different dates, how should exchange rate fluctuations be accounted for?

A

The exchange rate on the earliest date of purchases should be used

B

An average exchange rate should be used to convert

C

The rates on the dates of purchase should be used for each asset bought

D

A weighted average should be used for the exchnage rate

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957

The transition to full accrual accounting is supported by the revision of which component, encompassing modified cash, commitment, and asset accounting?

A

Refund of Revenues

B

Chart of Accounts

C

Table of accounts

D

Period of Account

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958

What is the primary foundation upon which accounting principles are generally established?

A

Subjectivity

B

None of these

C

convenience in recording

D

Practicability

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959

Which of the following events requires disclosure in the notes to the financial statements according to Generally Accepted Accounting Principles (GAAP)?

A

Whether small but long-lived items, such as electric pencil sharpeners and handheld calculators, are charged to asset or expense accounts

B

The depreciation method in use, given that several different methods are acceptable under generally accepted accounting principles

C

As of year-end, the chief executive officer had been hospitalized due to chest pains

D

A target lawsuit was filed against the company two days after the balance sheet date

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960

Calculate the variance between an actual operating income of $250,000 and a static budget of $150,000.

A

$600,000

B

$500,000

C

$100,000

D

$400,000

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