Application of Accounting Standards MCQ

Question 1

1. Non-corporate entities which are not Level I entities whose turnover (excluding other income) exceeds rupees ___________ but does not exceed rupees two-fifty crores in the immediately preceding accounting year are classified as Level II entities.

A) five crores.

B) two crores.

D) ten crores.

Answer

C) fifty crores. ✓

Question 2

2. All non-corporate entities engaged in commercial, industrial and business reporting entities, whose turnover (excluding other income) exceeds rupees 250 crores in the immediately preceding accounting year, are classified as

A) Level II entities.

C) Level III entities.

D) Level IV entities.

Answer

B) Level I entities. ✓

Question 3

3. All non-corporate entities engaged in commercial, industrial or business activities having borrowings (including public deposits) in excess of rupees two crores but does not exceed rupees ten crores at any time during the immediately preceding accounting year.

A) Level II entities. ADVANCED ACCOUNTING

B) Level IV entities.

D) Level I entities. 5. “Small and Medium Sized Company” (SMC) means, a company- (a) which may be a bank, financial institution or an insurance company. (b) whose turnover (excluding other income) does not exceed rupees two-fifty crores in the immediately preceding accounting year; (c) whose turnover (excluding other income) does not exceed rupees fifty crores in the immediately preceding accounting year; (d) whose turnover (excluding other income) does not exceed rupees five hundred crores in the immediately preceding accounting year. Theoretical Questions

Answer

C) Level III entities. ✓

Application of Accounting Standards MCQ

Sample Questions: Application of Accounting Standards