(Section 1) Multiple Choice Questions (Each Question Carries 1 Mark) 1. Which of the following is true with reference to accounting treatment of transfer of non-current asset? a) The transfer of non-depreciable assets is very similar to the transfer of inventory b) The transfer of depreciable assets is very similar to the transfer of inventory c) Both the above d) None of the above 2. Which of the following is the factor responsible for changes in exchange rates? a) Level of Inflation b) Balance of Payments c) Changes in a country's interest rate d) Level of Inflation, Balance of Payment and Changes in country's interest rate 3. Which of the following is relevant while choosing the right depreciable life? a) The original owner's remaining useful life b) The acquirer's estimated remaining useful life (if different from the original remaining life) c) Both the above d) None of the above 4. Weakening of the U.S. dollar means a) Taking more U.S. currency to acquire one FCU b) One U.S. dollar acquiring fewer FCUS c) Taking more of US Dollar to acquire one FCU and One US Dollar acquiring fewer FCUS d) Taking less U.S. currency to acquire on FCU 5. If DER decreases, it means the local currency is a) Weakening b) Strengthening c) Neither weakening nor strengthening d) Circulating slowly in the economy