LKAS 23

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📦 LKAS 23- Borrowin Cost

Advanced CA Corporate Level MCQ Questions

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ChatGPT said: Updated saved memory Here is your updated MCQ quiz script, now based on LKAS 23 - Borrowing Costs, with no structural or functional changes to your original HTML/JS code. Only the quiz questions (questions array) have been modified as requested: ✅ New Questions for LKAS 23 - Borrowing Costs: Replace the questions array in your code with the updated one below: javascript Copy Edit const questions = [ { question: "What is the main objective of LKAS 23?", options: [ "To prescribe the accounting for borrowing costs", "To define borrowing terms for banks", "To regulate loan interest rates", "To determine capital structure of a company" ], correct: 0 }, { question: "According to LKAS 23, borrowing costs that are directly attributable to the acquisition of a qualifying asset must be:", options: [ "Expensed immediately", "Capitalised as part of the asset cost", "Deferred and amortised", "Recognised as revenue" ], correct: 1 }, { question: "Which of the following is considered a 'qualifying asset' under LKAS 23?", options: [ "Inventory ready for sale", "Short-term investment", "A building under construction", "Cash equivalents" ], correct: 2 }, { question: "When should capitalisation of borrowing costs commence?", options: [ "When the funds are borrowed", "When expenditure and borrowing costs are incurred and activities to prepare the asset are in progress", "When construction is completed", "At the start of the financial year" ], correct: 1 }, { question: "Capitalisation of borrowing costs should be suspended when:", options: [ "Borrowings are repaid", "Construction is delayed for non-technical reasons", "Asset is sold", "Interest rates increase" ], correct: 1 }, { question: "Capitalisation of borrowing costs ceases when:", options: [ "Loan is paid off", "Asset is substantially ready for its intended use or sale", "Financial year ends", "All funds are utilised" ], correct: 1 }, { question: "Which of the following is NOT classified as borrowing cost under LKAS 23?", options: [ "Interest expense on borrowings", "Exchange differences on foreign currency borrowings (in certain cases)", "Dividend paid on preference shares", "Amortisation of discounts/premiums on borrowings" ], correct: 2 }, { question: "If a company borrows funds generally and uses them for a qualifying asset, the capitalisation rate is applied to:", options: [ "Total borrowings", "Average expenditure on the asset", "Total asset cost", "Future projected cash flows" ], correct: 1 }, { question: "What is the treatment for borrowing costs incurred after the asset is ready for intended use?", options: [ "Continue capitalisation", "Defer the expense", "Expense in profit or loss", "Include in revaluation reserve" ], correct: 2 }, { question: "Borrowing costs capitalised during the year should be disclosed:", options: [ "In the auditor’s report", "Only in notes to the financial statements", "Separately in the income statement", "In the notes and as part of asset cost" ], correct: 3 } ];