A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 32 - 33 of 50

Question 32

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Question

MCQ▾

International Accounting Standard (IAS) 38 is for

Choices

Choice (4)
a.Inventories
b.Intangible assets
c.Financial institutions
d.Earning per share

Answer

b.

Explanation

IAS 38 allows entities to identify and recognize separate value of intangible assets. It enables users to assess more accurately the value and makeup of assets of the entity. All intangible assets are identifiable non-monetary assets from contractual or other legal rights and is capable of being separated from entity and sold or licensed. IAS 38 applies to all intangible assets arising from –

  • Insurance contracts
  • Goodwill
  • Patents
  • Employee benefits

Question 33

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Question

MCQ▾

The maximum amount of capital that a company can raise is called

Choices

Choice (4)
a.Subscribed capital
b.Paid-up capital
c.Issued capital
d.Authorised capital

Answer

d.

Explanation

Share capital means capital raised by a company by the issue of shares. There are various kinds of share capital of a company are following:

Types of Share Capital

Types of Share Capital

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Authorised capital refers to that amount which is stated in the memorandum of association. This is maximum capital for which a company is authorised to issue shares during its lifetime.

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