JAIIB MCQs | Definition, Scope And Accounting Standards Including Ind AS

Definition, Scope and Accounting Standards including Ind AS is the First Unit (Unit 1) under Module A: Accounting Principles and Processes of Paper – III (Accounting & Financial Management for Bankers)

If you are appearing for the Upcoming JAIIB Exams, it is important to understand the fundamental concepts of the Topics and clear your doubts. We have prepare and collected some fundamental questions and answers in the form of MCQ Questions and Answers arranged into multiple Quizzes having 10 Questions in each Quiz. It can help you to understand the topics. A solid fundamental understanding will build your confidence and encourage you to think critically and enables you to answer the JAIIB MCQ Questions correctly in the Exam and increase your chances to pass the exam with flying colors. It is advisable to practice these Questions and Answers on regular basis to raise your confidence Level.

Practice MCQ Question and Answer – Definition, Scope and Accounting Standards including Ind AS

Quiz 3

1. What does GAAP stand for ?

(a) Generally Accepted Auditing Principles
(b) Generally Applicable Accounting Practices
(c) Generally Accepted Accounting Principles
(d) General Audit and Accounting Practices
….
Answer is (c)
Generally Accepted Accounting Principles

2. In the Resale Price Method, the transfer price is primarily derived by ?

(a) Subtracting an appropriate gross margin from the final sale price to a third party.
(b) Adding a fixed markup to the production cost.
(c) Negotiating a fair price between subsidiaries.
(d) Using an industry-standard rate for similar transactions.
….
Answer is (a)
Subtracting an appropriate gross margin from the final sale price to a third party.

3. What is transfer pricing primarily used for ?

(a) Determining the external market value of products
(b) Selling products between subsidiaries within the same company
(c) Selling products between unrelated companies
(d) Setting retail prices for customers
….
Answer is (b)
Selling products between subsidiaries within the same company

4. Which IAS standard addresses Accounting for Government Grants and Disclosure of Government Assistance ?

IAS 1
IAS 20
IAS 28
IAS 36

(a) Only (I)
(b) (I) and (III)
(c) Only (II)
(d) (II) and (IV)
….
Answer is (c)
IAS 20

5. How is accountancy different from bookkeeping ?

Accountancy includes compiling accounts to determine the state of affairs of a business.
Accountancy is limited to recording transactions in books of original entry.
Accountancy is a broader concept that encompasses bookkeeping.
Accountancy only deals with payroll management.

(a) Only (II)
(b) (I) and (III)
(c) (II) and (IV)
(d) Only (IV)
….
Answer is (b)
Accountancy includes compiling accounts to determine the state of affairs of a business and Accountancy is a broader concept that encompasses bookkeeping.

6. Which of the following standard provides guidelines for Earnings per Share ?

IAS 33
IFRS 08
IAS 21
IAS 32

(a) Only (I)
(b) Only (II)
(c) (II) and (III)
(d) (I) and (IV)
….
Answer is (a)
Set of rules and criteria that govern the recording of events in accounts and Guidelines that ensure financial statements are prepared consistently and transparently.

7. The IFRS Foundation aims to develop standards that are:

(a) Simple and region-specific
(b) Flexible for each country to modify
(c) Focused only on large-scale enterprises
(d) High quality, understandable, and globally accepted
….
Answer is (d)
High quality, understandable, and globally accepted

8. What responsibility does Section 134(5) of the Companies Act 2013 impose on the board of directors ?

(a) To provide additional training to auditors
(b) To check and qualify audit reports themselves
(c) To comply with mandatory accounting standards
(d) No responsibility is imposed on the board of directors
….
Answer is (c)
To comply with mandatory accounting standards

9. Which of the following is/are the purposes and the objectives of accountancy ?

To Keep a systematic record
To satisfy legal requirements
To invalidate the result of operation
To facilitate rational decision-making

(a) (I) and (II)
(b) Only (II)
(c) (I), (II) and (IV)
(d) (I), (II), (III) and (IV)
….
Answer is (c)
To Keep a systematic record, To satisfy legal requirements and To facilitate rational decision-making

10. Where is the headquarters of the IASB located ?

(a) New York, USA
(b) London, UK
(c) Geneva, Switzerland
(d) Paris, France
….
Answer is (b)
London, UK

Quiz Numbers

JAIIB MCQs | Definition, Scope and Accounting Standards including Ind AS | Quiz 3

Practice MCQ Question and Answer – Definition, Scope and Accounting Standards including Ind AS

1. What does GAAP stand for ?

2. In the Resale Price Method, the transfer price is primarily derived by ?

3. What is transfer pricing primarily used for ?

4. Which IAS standard addresses Accounting for Government Grants and Disclosure of Government Assistance ?

5. How is accountancy different from bookkeeping ?

6. Which of the following standard provides guidelines for Earnings per Share ?

7. The IFRS Foundation aims to develop standards that are:

8. What responsibility does Section 134(5) of the Companies Act 2013 impose on the board of directors ?

9. Which of the following is/are the purposes and the objectives of accountancy ?

10. Where is the headquarters of the IASB located ?

Read More: MCQ Type Questions and Answers from Paper – III (Accounting & Financial Management for Bankers)

Module A: Accounting Principles and Processes

Module B – Financial Statements and Core Banking Systems

Module C – Financial Management

Module D – Taxation and Fundamentals of Costing