Home » mcq » accounting » Match list-I with list-II and select the correct answer: List-I (Accounting Standards) List-II (Objects) a. AS-1 1. Valuation of inventory b. AS-2 2. Cash Flow Statement c. AS-3 3. Revenue Recognition d. AS-4 4. Disclosure of Accounting Policies
a-4, b-1, c-2, d-3
a-4, b-1, c-3, d-2
a-1, b-4, c-3, d-2
a-1, b-4, c-2, d-3
Answer is Wrong!
Answer is Right!
The correct answer is: C. a-1, b-4, c-3, d-2
AS-1 deals with the valuation of inventory. It prescribes the principles for determining the cost of inventory and
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the methods of accounting for it.
AS-2 deals with the preparation of cash flow statements. It prescribes the principles for determining the cash flows from operating, investing, and financing activities.
AS-3 deals with the recognition of revenue. It prescribes the principles for determining when revenue should be recognized.
AS-4 deals with the disclosure of accounting policies. It prescribes the principles for disclosing the accounting policies adopted by an entity.
Here is a brief explanation of each option:
- Option A: This option is incorrect because it assigns the wrong object to AS-2. AS-2 deals with the preparation of cash flow statements, not the valuation of inventory.
- Option B: This option is incorrect because it assigns the wrong object to AS-3. AS-3 deals with the recognition of revenue, not the preparation of cash flow statements.
- Option C: This option is correct because it assigns the correct object to each accounting standard.
- Option D: This option is incorrect because it assigns the wrong object to AS-4. AS-4 deals with the disclosure of accounting policies, not the recognition of revenue.