MULTIPLE CHOICE QUESTIONS ON CURRENT DEVELOPMENTS IN

ACCOUNTING

1. A value added concept forms part of _____

a. social responsibilities
b. infrastructure facilities
c. economic activities
d. individual responsibilities
e. none of the above

2. In which concept of value added is being used for a long time in measuring
National income

a. micro level
b. historical back ground
c. macro level
d. both a and b
e. both a and c

3. which of the following items doesn’t belong to additive approach

a. wages
b. salaries
c. interest
d. consumable stores
e. over head expenses

4. The items that create value such as wages, salaries, interest, depreciation, react,
insurance, employee benefits, other overhead expenses and profit before tax are
added up to give the sum of
a. value added
b. gross value added
c. net value added
d. cost method
e. none of the above

5. Which of the following help to management and others in making rational

decisions
a. government share to value added
b. interest and dividends to value added
c. output to value added
d. only a and b
e. a, b and c

Multiple Choice Questions on Current developments in Accounting prepared 1

by the students of ICFAI National College- Mehdipatnam, under the
guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.
 6. Which of the following statements is false
a. VA statement can be taken as a means to introduce the productivity linked
bonus share for employees
b. VA based ratios can be used for comparisons with other companies and for
international comparisons
c. VA concept is most relevant concept of the social responsibility concept of
the enterprise
d. VA statement can be used to measure the size and importance of the
company in economy
e. VA statement leads to erosion of operating capacity as the unrealistic
profits are paid in the form of dividends

7. Which of the following items belongs to subtractive approach?

a. Insurance
b. Employee benefits
c. Consumable stores
d. salaries
e. Profit before tax

8. Which of the following are not the aspects of HRA

a. valuation of human resources
b. recording the valuation in the books of accounts
c. presenting the information in the financial statements for communication
d. collecting the evidence relevant to the problem
e. none of the above

9. which of the following approaches belong to valuation of human resources

a. historical cost approach
b. standard cost approach
c. replacement cost approach
d. subtractive approach
e. additive approach

10. Present value of future earnings model, reward valuation models, net benefit
model, and total cost concept. The value models belongs to which approach
a. historical cost approach
b. present value of approach
c. opportunity cost approach
d. standard cost approach
e. replacement cost approach

Multiple Choice Questions on Current developments in Accounting prepared 2

by the students of ICFAI National College- Mehdipatnam, under the
guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.
 11. From the given below, which is the accounting that, deals with criminal matters
relating to employee theft, securities, insurance frauds.
a. litigation support
b. forensic accounting
c. investigative accounting
d. both a and b
e. both b and c

12. What are the branches of forensic accounting

a. Investigative Accounting
b. Litigation Accounting
c. Inflation Accounting
d. a and c
e. a and d

13. What are the steps involved in the review carried out by a forensic accountant
a. Recognition problem
b. Plan for the review
c. Collecting the evidence relevant to the problem
d. Preparation and submission of report
e. All the above

14. According to survey conducted in 1989 , how many public sector companies
producing VA statements
a. 36
b. 28
c. 14
d. 52
e. 30

15. Survey conducted in ……year, 14 companies producing VA statements

a. 1990
b. 1987
c. 1972
d. 1979
e. 1989

16. The statement can only be used as a supplementary of financial information is..
a. Value Added Statement
b. Reconciliation Statement
c. Accounting Statement
d. Trail Balance Statement
e. None of the above

Multiple Choice Questions on Current developments in Accounting prepared 3

by the students of ICFAI National College- Mehdipatnam, under the
guidance of Mr. Mohd. Nazeer Ahmed, Faculty Member for Finance.