The 'Fair Value Hierarchy' under Ind AS 113 categorises inputs into: MCQ with Answer and Explanation
Question
Report Error
Discuss this Question (0)
Practice More Accountancy and Book Keeping Questions
Question #1
Report Error
A company's standard cost for a product includes 10 kg of material at ₹5 per kg. The actual production was 1,000 units, and 10,500 kg of material was used at ₹4.50 per kg. What is the Material Usage Variance?
Correct Answer: Option C
Explanation:
Standard Quantity for Actual Production (SQ) = 1,000 * 10 = 10,000 kg. Actual Quantity (AQ) = 10,500 kg. Standard Price (SP) = ₹5. Usage Variance = (SQ - AQ) * SP = (10,000 - 10,500) * 5 = -500 * 5 = ₹2,500 Adverse.
Standard Quantity for Actual Production (SQ) = 1,000 * 10 = 10,000 kg. Actual Quantity (AQ) = 10,500 kg. Standard Price (SP) = ₹5. Usage Variance = (SQ - AQ) * SP = (10,000 - 10,500) * 5 = -500 * 5 = ₹2,500 Adverse.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
Report Error
A: A Ledger account is opened for each type of asset, liability, equity, income, and expense. R: The Ledger is the principal book of accounts. Choose the correct option.
Correct Answer: Option D
Explanation:
A ledger account is indeed opened for every element of the financial statements to classify and summarize transactions. It is the principal book of accounts. Both are true, but R doesn't explain *why* accounts are opened for each element.
A ledger account is indeed opened for every element of the financial statements to classify and summarize transactions. It is the principal book of accounts. Both are true, but R doesn't explain *why* accounts are opened for each element.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
Report Error
An amount of Rs 5,000 received from Mohan was incorrectly credited to Sohan's account. This is an example of:
Correct Answer: Option A
Explanation:
Posting to the correct side but the wrong personal account is a clerical mistake classified as an error of commission.
Posting to the correct side but the wrong personal account is a clerical mistake classified as an error of commission.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
No comments yet. Be the first to start the discussion!