Gujarat Board GSEB Class 11 Commerce Accounts Important Questions Part 2 Chapter 7 Accounting Standards: Concept and Objectives Important Questions and Answers.

GSEB Class 11 Accounts Important Questions Part 2 Chapter 7 Accounting Standards: Concept and Objectives

Answer the following question in one sentence :

Question 1.
Mention the full form of ASB.
Answer:
ASB means Accounting Standards Board.

Question 2.
What do you mean by IASB?
Answer:
IASB means International Accounting Standards Board.

Question 3.
Mention the full form of ICAI.
Answer:
Full form of ICAI is Institute of Chartered Accountants of India.

Question 4.
Mention the full form of IFRS.
Answer:
Full form of IFRS is International Financial Reporting Standards.

Question 5.
According to Kohlar, what are Accounting Standards?
Answer:
According to Kohlar, Accounting Standards are a Code of Conduct imposed on accountants by custom, law and a professional body.

Question 6.
What do you mean by NACAS?
Answer:
NACAS means National Advisory Committee on Accounting Standards.

Question 7.
What does Accounting Standards provide?
Answer:
Accounting Standards provide rules and guiding principles for preparation and presentation of financial statements.

Question 8.
When is the reliability of financial statements enhanced?
Answer:
When financial statements are prepared in compliance with accounting standards and auditors have certified such compliance, it enhances the reliability of financial statements.

Question 9.
What is the main objective of setting accounting standards?
Answer:
The main objective of setting accounting standards is to bring uniformity in accounting policies and practices and to ensure transparency, consistency and comparability.

Question 10.
When are the accounting standards revised?
Answer:
When business environment or laws change, then accounting standards are revised.

Question 11.
What are used in writing accounts and in preparing financial statements?
Answer:
Accounting principles, concepts and conventions are used in writing accounts and in preparing financial statements.

Question 12.
Why did ICAI set up the ASB?
Answer:
In India, the ICAI set up the ASB on 21st April 1977 to formulate accounting standards.

Question 13.
How are the Accounting Standards prepared?
Answer:
Accounting standards are prepared keeping in view the business environment and laws of the country.

Question 14.
Give full form of IASC.
Answer:
Full form of IASC is International Accounting Standard Committee.

Question 15.
In India, what is to be followed by companies while preparing books of accounts?
Answer:
In India, Indian Accounting Standards are to be followed by the companies while preparing books of accounts.

Question 16.
Are the Accounting Standards rigid or not?
Answer:
Accounting Standards are not rigid.

Question 17.
In case of conflict between the accounting standard and law, what shall prevail/be considered?
Answer:
In case of conflict between the accounting standard and law, the law shall prevail/be considered.

Question 18.
How are Accounting Standards prepared?
Answer:
Accounting Standards are prepared keeping in view the business environment and laws of the country.

Question 19.
What does Accounting Standards provide?
Answer:
Accounting Standards provide rules and guiding principles for preparation and presentation of financial statements.

Question 20.
Give title name of Ind AS-1, Ind AS-2 and Ind AS-7.
Answer:
1. Ind AS-1: Presentation of Financial Statements
2. Ind AS-2: Inventories
3. Ind AS-7: Statement of Cash Flows.

Write the correct option from those given below each question :

Question 1.
In which year was IASC established?
(a) 1970
(b) 1973
(c) 1977
(d) 1975
Answer:
(b) 1973

Question 2.
In which year was ASB set up by ICAI?
(a) 1970
(b) 1973
(c) 1975
(d) 1977
Answer:
(d) 1977

Question 3.
On which date, IASB took over the responsibility for setting International Accounting Standards?
(a) 1st March, 2001
(b) 1st April, 2001
(c) 1st March, 2002
(d) 1st April, 2002
Answer:
(b) 1st April 2001

Question 4.
On which date, ICAI set up the ASB?
(a) 21st April, 1970
(b) 21st April, 1973
(c) 21st April, 1975
(d) 21st April, 1977
Answer:
(d) 21st April 1977

Question 5.
What does the ICAI issue?
(a) International Financial Reporting Standards
(b) Indian Accounting Standards
(c) General Accounting Standards
(d) Special Accounting Standards.
Answer:
(b) Indian Accounting Standards

Question 6.
What does the ASB issue?
(a) Indian Financial Reporting Standards
(b) International Financial Reporting Standards
(c) General Financial Reporting Standards
(d) Special Financial Reporting Standards.
Answer:
(b) International Financial Reporting Standards

Question 7.
In India, in consultation with NACAS, notified companies (India Accounting Standards) Rule 2015, to come into force from ……………………….. .
(a) 1st April, 2005
(b) 1st April, 2010
(c) 1st March, 2015
(d) 1st April, 2015
Answer:
(d) 1st April 2015

Question 8.
Who issues Indian Accounting Standards?
(a) ICAI
(b) SBI
(c) IFRS
(d) IASB
Answer:
(a) ICAI

Question 9.
Accounting Standards ………………… .
(a) are rigid
(b) are not rigid
(c) are not useful
(d) are not hard.
Answer:
(b) are not rigid.

Question 10.
Accounting Standards provide rules and guiding principle for preparation and presentation of ………………… .
(a) non-financial statements.
(b) financial statements.
(c) trial balance and balance sheet.
(d) income-expenses statement.
Answer:
(b) financial statements.

Question 11.
From the following, which is not the objective of accounting standards?
(a) To bring uniformity in accounting policies.
(b) To allow flexibility of adopting a particular method.
(c) To enhance the reliability if financial statements.
(d) To decrease the credibility of financial statements.
Answer:
(d) To decrease the credibility of financial statements.

Question 12.
How many accounting standards are issued by the ICAI?
(a) 28
(b) 31
(c) 32
(d) 39
Answer:
(d) 39

Question 13.
In case of conflict between the accounting standards and law, ………………….. .
(a) the accounting standards shall prevail.
(b) the law shall prevail.
(c) the Central Government shall prevail.
(d) the Income Tax Authority shall prevail.
Answer:
(b) the law shall prevail.