Current Development In Accounting-03

MULTIPLE CHOICE QUESTIONS 1. Value added is measured as a difference between sales and a) Cost of Material b) Services purchased from outside c) cost of material & services purchased from outside d) only a e) Only b 2. value added statements forms a part of a) Social Responsibility Reporting b) Economic Responsibility Reporting c) Social & Economic Responsibility d) Economic Responsibility e) None of the above 3. computation of value added approaches are a) Additive approach b) Subtractive approach c) Social approach d) Additive Approach & Subtractive Approach e) None of the above 4. The concept of value added is being used for a long time measuring in a) State Income b) National Income c) Both a & b d) District Income e) None of the above 5. Which of the following methods involves stating the brand value at its cost of the company? a) cost Method b) value added Method c) Earning valuation Method d) Hybrid Method 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.

1

e) None of the above 6. Net value added (NVA) is derived by deducting a) Deprecation from the gross value Added b) Appreciation from gross value Added c) Depreciation & appreciation from the gross value added. d) None of the above 7. Value added Ratio’s can be used for comparison with a) Introduce the productivity b) Other Companies & for International comparisons c) Gross value Added d) None of the above 8. The two stage process involving a) Earnings valuation Method b) Cost Method c) Hybrid Method d) Brand valuation Method

e) None of the above 9. Brand valuation is the tool that a) Quantities the Economic value of Brand b) Quality the economic value of a Brand c) Quality & Quantity of economic value of a Brand

d) None of the above 10.Which of the following explains the increasing importance placed based on brand creation & management. a) Brand Valuation & Accounting b) Earnings valuation method c) Cost Method d) Hybrid Method e) None of the above 11. Value added can only be used as a 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.

2

a) Supplementary statement of Financial Information b) Supplementary statement of profit & loss account

c) It used as balance sheet d) None of the above 12.Which of the following methodology involves determining the cost incurred in developing the brands a) Costs Method b) Hybrid method c) Earnings value added method d) None of the above 13. Value added statement is formed on the basis of general concepts like a) Going concern concept b) Matching concept

c) Consistency concept d) All the Above 14.Inflation is the over all upward movement prices of goods & services which is measured by a) Price b) Consumer price c) Consumer price & producer price index d) Producer price index e) None of the above 15.Which of the following is illogical due to changes in specific & general price index a) Inflation b) Price c) Purchasing Power d) Specific Power e) None 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.

3

16. Which of the following are not relevant as they do not match with

a) b)

c) d) e)

current cost of Assets Costs Provision of Depreciation Unrealistic profits Current costs None of the above

17. Which of the following will be more accurate & closer to its intrinsic a) b)

c) d)

e)

value Financial statement Value of Assets Actual Profits Fixed Assets None of the above

18.Which of the following will approach to accounting for Price level changes a) Inflation Accounting b) Value of Assets c) Current Cost Accounting d) Intrinsic value e) None of the above 19.Under which accounting the historical accounting data is adjusted on the basis of the general price index a) Current Purchasing Power Accounting b) Current Cost Accounting c) Hybrid Method d) Cost Accounting Method e) None of the above 20. Which of the following is the adoption current cost is recommended to overcome the drawback of current purchasing power a) Current Purchasing Power Accounting b) Current Cost Accounting c) Hybrid Method d) Cost Accounting Method e) None 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.

4

21.Which of the following method is approach of accounting for price level changes combines the CPPA & CCA approach a) Current Purchasing power Accounting b) Current cost Accounting c) Hybrid Method d) Inflation e) None of the above 22. Which ratios help to Management and other is making rational a) b) c) d) e)

decisions Gross value Added Net value Added Value Added Ratio’s Current Cost Accounting Current purchasing power Accounting

23.In which statement all revenues , income cost of materials & other extra ordinary expenses are shown a) Inflation accounting b) Value Added Statement c) Brand valuation d) Value Added Ratios e) Gross value Added 24. This approach was developed by Brummet, Hamntoz & Pyle a) Additive Approach b) Subtractive Approach c) Historical cost Approach

d) None of the above 25.Cost associated with functions of Personnel Management Process in acquiring & developing Human Resources termed of a) Human resource Accounting b) Forensic Accounting c) Inflation Accounting d) Personal Cost Accounting e) All 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.

5

26.Approach of Accounting for price level changes combines the CPPA & CCA approaches a) Inflation Accounting b) Current purchasing power Accounting c) Human Resource Accounting d) Current Cost Accounting e) Hybrid Method 27. What type of an enterprise as measured with in balance sheet a) Value b) Capital

c) Tangible Assets d) Human resource e) None of these 28.What are added up to give the sum of value added such as a) Wages & salaries b) Insurance & rates c) Interest & Depreciation d) Rates& insurance e) All the above 29. This value added is arrived at by deducting from sales revenue & direct a)

b) c)

d) e)

income Net Value Added Gross value Added Value Added Ratios Value Added statement Interpretation of Value Added statement

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.

6