Current Development In Accounting-02

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CHAPTER -15 CURRENT DEVELOPMENTS IN ACCOUNTING

1. A value added statement forms a part of ______________ ? a. Social responsibility. b. Inflation accounting. c. Human resource accounting. d. Forensic accounting. 2. The concept of value added is been used in measuring? a. Per capita income. b. National income c. GDP. d. NNP. 3. The concept of value added is been used in measuring national income at ______________? a. Micro level. b. Macro level. c. Both a & b. d. None of the above. 4. In which year all the German manufacturing companies are required by law to prepare the value added statements? a. 1980. b. 1967. c. 1966. d. 1965. Multiple Choice Questions on Current developments in Accounting prepared by the students of ICFAI National College- Mehdipatnam, under the guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.

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5. Which companies are required by law to prepare the value added statement? a. Finance companies. b. Electronic manufacturing companies. c. German manufacturing companies. d. IT companies. 6. Addition of wealth made by the organization with the efforts of management and employees using capital is called ? a. Price addition. b. Revenue addition. c. Value deletion. d. Value addition. 7. Value added is measured as ? a. Difference between the sales and cost of material and services purchased from outside. b. Difference between cost of material and sales and added services purchased from outside. c. Add cost of material and services purchased from outside and sales. d. None of these. 8. Pre – Tax profit plus labour, depreciation and interest is equal to ? a. Value in use. b. Value in exchange. c. Value additive method. d. None of these. Multiple Choice Questions on Current developments in Accounting prepared by the students of ICFAI National College- Mehdipatnam, under the guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.

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9. In additive approach all the item that create values are ? a. Wages and salaries. b. Depreciation, rent, rates & insurance. c. Employee benefit & profit before tax. d. All the above. 10. Increase or decrease in labour & relevant overheads in stock & work in progress are? a. Subtracted. b. Multiplied & then added. c. Added or deducted. d. None of the above. 11. The following ratios which are of great help to the Management and others, in making rational decisions? a. Value additive ratios. b. Value subjective ratios. c. Retained earning ratios. d. Value added ratios. 12. What is deducted from sales revenue and any other direct income and investment income__________? a. Gross realized value. b. Gross value added. c. Gross asset value. d. Gross income.

Multiple Choice Questions on Current developments in Accounting prepared by the students of ICFAI National College- Mehdipatnam, under the guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.

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13. Net value added is derived by ___________ ? a. Deducting depreciation from the gross value added. b. Adding depreciation to the gross value added. c. Gross value is multiplied to depreciation. d. All of the above. 14. Social responsibility concept says that the organization is a social institution working for? a. Benefit of small group of investors. b. Benefit of small scale industries. c. Benefit of interested groups in the society. d. Benefit of private & public sector companies. 15. Value added statement can be taken as a means to Introduce ____________________________? a. Productivity bonus schemes for employees. b. Productivity bonus schemes for employers. c. Productivity bonus scheme for customer. d. Productivity bonus scheme for society. 16. Value added ratio can be used for ________________? a. Comparison with other companies and for international comparisons. b. Comparison of incomes of other companies and international companies. c. Comparison between the total expenditure and total revenue of the company. d. None of these.

Multiple Choice Questions on Current developments in Accounting prepared by the students of ICFAI National College- Mehdipatnam, under the guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.

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17. Value added statement can be used to measure the ? a. Gross domestic product. b. Size and importance of a company. c. Total revenue of the company. d. All of the above. 18. The current balance sheets and income statements are based on general concept of _______________________ ? a. Business entity concept. b. Going concern, matching and consistency concept. c. Accounting period concept. d. None of these. 19. The ultimate risk takers in times of emergency are ______? a. Creditors. b. Debenture holders. c. Underwriters. d. Shareholders. 20. The value added statement can only be used as statement of financial in information and it cannot be used in no way as? a. In Lieu of profit and loss account and traditional income statement. b. In preparation of cash flow statement. c. In preparation of fund flow statement. d. All of the above.

Multiple Choice Questions on Current developments in Accounting prepared by the students of ICFAI National College- Mehdipatnam, under the guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.

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21. Different components of the value added statement can be related to the total value added number? a. Government share to value added. b. Interest and dividends to value added. c. Employee benefit to value added. d. All of the above. 22. Value added statement are______________? a. Standardized. b. Non- standardized. c. Both a & b. d. Only b. 23. In the Interpretation of value added statements the contribution made by which factor costs must also be considered? a. Net value added. b. Net present value. c. Future value. d. Present value. 24. The important factor components of value addition reveal more information about ____________________________ ? a. The absolute value of net value added and its proportion to gross output. b. The Gross output is equal to absolute value. c. Only a. d. Both a & b. Multiple Choice Questions on Current developments in Accounting prepared by the students of ICFAI National College- Mehdipatnam, under the guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.

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25. In which year a survey was conducted in 36 public sector companies are producing value added statements. a. 1990. b. 1988. c. 1989. d. 1900. 26. Which companies value added statements include? a. CCI, SAIL, ACC. b. BHEL, BPCL, Indian Rayon. c. SPIC, Britannia, Infosys. d. All of the above. 27. The idea of brands as financial assets emerged in mid ? a. 90’s. b. 80’s. c. 70’s. d. All of the above. 28. Under current Purchasing Power Accounting the historical accounting data is adjusted on the basis of ______________? a. General price index. b. Common price index. c. Whole sale price index. d. Retail price index.

Multiple Choice Questions on Current developments in Accounting prepared by the students of ICFAI National College- Mehdipatnam, under the guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.

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29. In current cost accounting method, the current values of individual items are taken as the basis of preparing ? a. Trading and profit and loss Accounts. b. Profit and loss appropriation account and balance sheet. c. Profit and loss account and balance sheet. d. Profit and loss account and Profit and loss appropriation account. 30. Under current cost accounting method, the adoption current cost is recommended to overcome the drawback of? a. Current selling power. b. Future selling power. c. Future purchasing power. d. Current purchasing power. 31. In Hybrid method financial statements can be prepared by combining the factors of? a. Both CCA and CPPA. b. Only CPPA. c. Only CCA. d. None of the above. 32. The number of approaches to accounting for price level changes is __________? a. 4. b. 2. c. 3. d. 5.

Multiple Choice Questions on Current developments in Accounting prepared by the students of ICFAI National College- Mehdipatnam, under the guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.

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33. In human resource accounting (HRA) the emergence of methods for accounting human resources aimed at measuring, developing and managing the following in an enterprise? a. Human capital. b. Working capital. c. Share capital. d. All the above. 34. The primary purpose of HRA is to facilitate the management of people are? a. Human resources. b. Financial resources. c. Organizational resources. d. Capital resources. 35. Among the following aspects HRA comprises of ? a. CPPA. b. CCA. c. Valuation of human resources. d. Hybrid method. 36. Historical cost approach was developed by? a. Brummet, Flamhtoz & Pyle. b. Hekimian & Jones. c. David Watson. d. Rennies Likert & Eric.

Multiple Choice Questions on Current developments in Accounting prepared by the students of ICFAI National College- Mehdipatnam, under the guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.

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37. Human resources of an Organization are to be valued at their present ? a. Opportunity Cost. b. Standard Cost. c. Historical Cost. d. Replacement Cost.

Multiple Choice Questions on Current developments in Accounting prepared by the students of ICFAI National College- Mehdipatnam, under the guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.

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KEY 1.a

2.b

3.b

4.d

5.c

6.d

7.a

8.d

9.d

10.c

11.d

12.b

13.a

14.c

15.a

16.a

17.b

18.b

19.d

20.a

21.d

22.d

23.a

24.c

25.c

26.d

27.b

28.a

29.c

30.d

31.a

32.c

33.a

34.c

35.c

36.a

37.d

Multiple Choice Questions on Current developments in Accounting prepared by the students of ICFAI National College- Mehdipatnam, under the guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.