FR MCQ SET 1

What is the primary objective of accounting standards?

• To increase tax revenue

• To ensure consistency and comparability of financial statements

• To minimize regulatory oversight

• To reduce the cost of financial audits

Which of the following best defines IND AS (Indian Accounting Standards)?

• A set of rules for taxation in India

• A framework for financial reporting in India, converged with IFRS

• Guidelines for internal management accounting

• Regulations for corporate governance in India

What is the primary purpose of IFRS (International Financial Reporting Standards)?

• To standardize accounting practices worldwide

• To provide guidelines for company formation

• To set rules for mergers and acquisitions

• To establish tax reporting requirements

Which of the following is a benefit of adopting IFRS?

• Increased regional tax rates

• Enhanced comparability of financial statements across international borders

• Reduced compliance with local regulations

• Greater complexity in financial reporting

One limitation of accounting standards such as IND AS and IFRS is:

• Incompatibility with local business practices

• Increased transparency in financial reporting

• Enhanced comparability with global standards

• Lower compliance costs

Who is primarily responsible for formulating IFRS?

Evaluate responses using AI:

OFF

What is the primary body responsible for the formulation of IND AS in India?

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OFF

Which entity provides the roadmap for the implementation of IND AS in India?

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OFF

Which of the following is a key milestone in the IND AS implementation roadmap?

Evaluate responses using AI:

OFF

Net worth assessment for IND AS application is typically based on:

• Company's market capitalization

• Financial assets and liabilities

• Revenue from operations

• Total equity and reserves