Register No ___________________
(23CMU303, 22AFU303)
KARPAGAM ACADEMY OF HIGHER EDUCATION
(Deemed to be University)
(Established Under Sec.3 of UGC Act, 1956)
Accredited with A+ Grade by NAAC in the Second Cycle
Coimbatore – 641021
(For candidates admitted from 2023 onwards)
Continuous Internal Assessment – II
II BCOM, II BCOM IAF
III SEMESTER
FINANCIAL REPORTING-I
Date: Time: 2 Hours
Session: Maximum Marks: 50
PART – A (20X1=20)
Answer All the Questions
1. Inventories must be measured at ______________
a) Cost
b) Lower of cost and estimated selling price less cost to complete and sell
c) Lower of cost and fair value less cost to complete and sell
d) None of these
2. An intangible asset is identifiable ......... asset
a) Monetary b) Non -Monetary c) Fictitious assets c) All of the above
3. If an entity does not expect to recover the carrying amount of an asset, the entity has
incurred
a) Depreciation expenses b) An amortization cost
b) An impairment of loss d) A loss on disposal
4. Borrowing cost are __________________
a) Interest and other cost that an entity incurs in connection with borrowing of funds
b) Dividend payments
c) Fine on delayed payments
d) None of the above
5. Events after the reporting period are .............. Events that occur between the end of the
reporting period and the date when the financial statements are authorized for issue
a) Predictable b) Favorable c) Unfavorable d) B&C
6. Events that provide evidence of conditions that existed at the end of the reporting period
a) Adjusting events b) Non-adjusting events
c) Recurring events d) None of the above
7. Ind AS 38 deals with ___________
a) Tangible assets b) Impairment
c) Intangible assets d) Borrowing cost
8. Which of the following cannot be a qualifying asset
a) Power generation facility b) Manufacturing plants
b) Intangible assets d) Financial assets
9. The matching concept matches which of the following
a) Asset with liabilities b) Capital with income
c) Revenues with expenses d) Expenses with capital
10. When revenue will be recognized under cash basis of accounting
a) Sale is made b) Cash is received
c) Goods are delivered d) Services are rendered
11. Revenue recognition methods are...............
a) Sales basis method b) Completed contract method
c) Installment method d) All of the above
12. Risk and reward ownership have been transferred from .........................
a) Seller to the buyer b) Buyer to seller
c) Seller to customer d) Customer to seller
13. According to the revenue recognition principle, deferred income is recorded as...........until
delivery is made
a) Asset b) Liability c) Expense d) Income
14. Deferred income is...........
a) Revenue b) Asset c) Liability d) Advance
15. Deferred revenue is a liability on a company ------
a) Profit &loss account b) Balance sheet
c) Cashflow statement d) Fund flow statement
16. Revenue advances are not B27recognised as -----------
a) Liability b) Revenue c) Expenses d) Assets
17. Which of the following accounts is a temporary account
a) Common Stock b) Retained Earnings c) Cash d) Dividends
18. Depreciation on fixed asset, is an example of
a) Capital expenditure b) Capital receipts
c) Revenue expenditure d) Revenue receipts
19. Capital expenditure is ----------------
a) Expenditure on sales b) Expenditure on employees
c) Expenditure on purchase of fixed assets d) All of the above
20. The general term employed to indicate an expense that has not been paid and has not yet
been recognized in the accounts by a routine entry is
a) Capital b) Deferral c) Accrual d) Inventory
PART – B (3X2 = 6 Marks)
Answer All the Questions
21. What is mean by Intangible Asset?
22. Define Impairment.
23. Illustrate the term Biological Asset.
PART – C (3X8 = 24 Marks)
Answer All the Questions
24. a) Explain how events after the reporting period are handled in financial statements.
(OR)
b) Discuss the different accounting policies.
25. a) Illustrate the steps involved in revenue recognition of goods and services.
(OR)
b) Demonstrate the concept of Deferred Income.
.
26. a) Discuss the criteria for revenue recognition.
(OR)
26. b) Explain the process of recognizing impairment of assets.
*************
