4. Contingent Assets/Liabilities, Accounting Policies, Accounting as a Measurement Discipline – Valuation Principles, Accounting Estimates & AS Basics

A contingent asset is defined as a possible asset that arises from:

Which of the following is true about contingent liabilities?

Contingent liabilities differ from provisions because:

When should a contingent asset be recognized in the financial statements?

Which statement about contingent liabilities is incorrect?

If the management estimates that a contingent liability is probable and can be reliably estimated, it should be:

Accounting policies refer to:

The selection of accounting policies is influenced by which of the following characteristics?

An inappropriate selection of accounting policies may lead to:

Accounting policies should be selected based on:

Which of the following is an example of a change in accounting policy?

A change in accounting policy is justified when:

Measurement in accounting primarily deals with:

Which of the following is not a generally accepted measurement base in accounting?

Historical cost in accounting refers to:

Realizable value is best described as:

Present value measurement involves:

The concept of prudence in accounting suggests that:

Which measurement base is commonly used for valuing inventory?

If a company changes its inventory valuation method from FIFO to weighted average, this is an example of:

The primary objective of Accounting Standards is to:

Accounting Standards in India are issued by:

Which of the following is not a benefit of Accounting Standards?

Accounting Standards cannot:

The process of setting Accounting Standards in India involves:

Which of the following is true about the list of Accounting Standards in India?

Which of the following best describes a liability?

A contingent liability is recognized when:

Provisions are created when:

Which of the following scenarios would result in the recognition of a provision?

In financial reporting, a provision differs from a liability in that:

An example of a provision is:

Which of the following is an element of measurement in accounting?

The money measurement concept in accounting implies that:

Which of the following measurement bases records assets at their acquisition price?

The dimension of measurement scales refers to:

Which concept deals with assigning numbers to objects and events according to specified rules?

Measurement scales in accounting often fluctuate due to:

An ideal measurement scale in accounting would be:

Under the historical cost principle, liabilities are recorded at:

Current cost valuation differs from historical cost in that it:

Which of the following best describes realizable value?

Present value is most closely associated with:

When an asset is recorded at the amount of cash expected to be received from its sale, it is measured at:

Which valuation principle is typically used when valuing investments and loans?

In accounting, the discounting of future cash flows to present value is done to reflect:

The method that typically values inventory at the lower of cost and net realizable value is:

Which principle states that an asset should be recorded at the amount that would be received in an orderly sale?

Accounting estimates are necessary because:

Which of the following is an example of an accounting estimate?

Changes in accounting estimates are applied:

If a company revises the estimated useful life of an asset, the change should be:

Which of the following might require the use of an accounting estimate?

A change in accounting estimate is recognized:

An accounting estimate is revised when:

Which of the following scenarios is an example of a change in accounting estimate?

The term ‘true and fair view’ in accounting refers to:

Ensuring a true and fair view in financial statements involves:

The matching principle in accounting states that:

Which of the following is true regarding the accrual basis of accounting?

Which accounting concept requires that the financial statements reflect the economic reality of transactions?

The going concern assumption in accounting implies that:

Which of the following is a primary financial statement?

The income statement primarily reflects:

The balance sheet provides information about:

The cash flow statement is useful for assessing:

Ensuring a true and fair view in financial statements involves:

The matching principle in accounting states that:

Which of the following is true regarding the accrual basis of accounting?

Which accounting concept requires that the financial statements reflect the economic reality of transactions?

The going concern assumption in accounting implies that:

Which of the following is a primary financial statement?

The income statement primarily reflects:

The balance sheet provides information about:

The cash flow statement is useful for assessing:

Which of the following is a limitation of financial statements prepared under GAAP?

Financial statements prepared under IFRS are primarily aimed at:

The primary purpose of the auditor’s report is to:

Which of the following is an example of an internal control?

The concept of materiality in accounting refers to:

Which of the following is a qualitative characteristic of financial information?

Which of the following is a fundamental accounting assumption?

Which of the following is a characteristic of useful financial information?

Which of the following is a primary objective of financial reporting?

The financial statements of a company are prepared to provide information primarily to:

Which of the following is a limitation of financial statements?

Which of the following is a qualitative characteristic of financial information?

The financial statements of a company are prepared to provide information primarily to:

Which of the following is a limitation of financial statements?

Which of the following is a limitation of financial statements prepared under GAAP?

Financial statements prepared under IFRS are primarily aimed at:

The primary purpose of the auditor’s report is to:

Which of the following is an example of an internal control?

The concept of materiality in accounting refers to:

Which of the following is a qualitative characteristic of financial information?

Which of the following is a fundamental accounting assumption?

Which of the following is a characteristic of useful financial information?

Which of the following is a primary objective of financial reporting?

The financial statements of a company are prepared to provide information primarily to:

Which of the following is a limitation of financial statements?