Assertion (A): Under Ind AS 38, an intangible asset with an indefinite useful life is not amortized. Reason (R): Its useful life cannot be foreseen, so it is tested for impairment annually under Ind AS 36. Choose the correct option. MCQ with Answer and Explanation
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Question #1
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The 'Minimum Alternate Tax' (MAT) rate for companies is:
Correct Answer: Option B
Explanation:
MAT is 15% of book profits (plus surcharge and cess).
MAT is 15% of book profits (plus surcharge and cess).
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A firm's assets ₹6,00,000, liabilities ₹1,00,000, normal rate 10%, average profit ₹75,000. Value of goodwill by capitalization of average profit method (total value less net assets) is:
Correct Answer: Option B
Explanation:
Capitalized value of average profit = 75,000 / 10% = ₹7,50,000. Net assets = 6,00,000 - 1,00,000 = ₹5,00,000. Goodwill = 7,50,000 - 5,00,000 = ₹2,50,000.
Capitalized value of average profit = 75,000 / 10% = ₹7,50,000. Net assets = 6,00,000 - 1,00,000 = ₹5,00,000. Goodwill = 7,50,000 - 5,00,000 = ₹2,50,000.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The 'Cash Budget' primarily helps in:
Correct Answer: Option A
Explanation:
Cash budget forecasts cash receipts and payments to ascertain cash surplus or deficit.
Cash budget forecasts cash receipts and payments to ascertain cash surplus or deficit.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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