CHAPTER -15

CURRENT DEVELOPMENTS IN ACCOUNTING

1) Which of the following approach excludes those types of employees who can be
hired from outside
a) Standard cost approach c) Replacement cost approach
b) Opportunity cost approach d) Present value cost approach

2) Which of the following are important models of Present value approach?

a) Net benefit model c) Reward valuation model
b) Total cost concept d) All the above

3) ____________ is the process of identifying and measuring data about human

resources for effective management within organization
a) NVA c) HRM
b) GVA d) HRA

4) Net Value added is derived by deducting the following from the gross value added
a) Commission c) Depreciation
b) Interest d) Tax

5) Human Resource Accounting provides useful information to

a) Management c) Employees
b) Financial analysis d) All the above

6) Human resource accounting helps individual employees in improving their

a) Purchasing power c) Performance
b) Bargaining power d) Both 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.
 7) In India, financial statements of companies have to be prepared as per the
provisions of Company’s Act
a) 1967 c) 1956
b) 1957 d) 1964

8) Importance of Human resource accounting in India is growing in all sectors

including
a) Private sector c) semi public
b) Public sector d) Both a & b

9) Forensic Accounting is also called as

a) Inflation accounting c) Investigation accounting
b) cost accounting d) Human resource accounting

10) Put the steps involved in the review carried out by the forensic accounting in
correct order
i) Collecting the evidence relevant to the problem
ii) Evaluation and Summarization of evidence
iii) Recognition of problem
iv) Preparation and submission of report
v) Plan for review
a) i, ii, v, iii, iv c) iii, v, i, ii, iv
b) iv, i, ii, v d) v, iii, iv, i

11) Evaluation and summarization of evidence is done by

a) Statistical techniques c) Quantitative techniques
b) Computer aided techniques d) both a & b

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.
 12) Inflation is the overall upward movement of prices of goods and services which is
measured by
a) Consumer price index c) both a & b
b) Producer price index d) only a

13) In absence of which factor from the balancesheet discloses the true financial
position of a company
a) Brand valuation c) Valuation of net present value
b) Valuation of asset d) both a & b

14) It has become necessary for companies to determine the values of their brand in
order to reflect its
a) Intrinsic value c) both a & b
b) Capital asset value d) None of the above

15) Which method of brand valuation is widely accepted in most of the markets around
the world
a) Intrinsic value method c) Present value method
b) Earning valuation method d) Net asset value method

16) How many stages does Earning valuation method has

a) Two stages c) one stage
b) Three stages d) six stages

17) Earning valuation method process involves

a) Determining the total earnings attributable to a brand
b) Applying an appropriate multiplier to determine its present value
c) Both a & b
d) None of 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.
 18) Which method involves in stating the brand value at its cost to the company is
a) Cost method c) Net value added method
b) Management accounting method d) none of above

KEY

1.b 2.d 3.d 4.c 5.d 6.d

7.c 8.b 9.c 10.c 11.d 12.c
13.a 14.a 15.b 16.a 17.c 18.a

Multiple Choice Questions on Current developments in Accounting prepared 4

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