For CA FINAL, with 30 marks of MCQs in each of the 6 subjects, nailing this section is your smartest way to clearing exams effortlessly.
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Follow @camcqspractice for updates, amendment related MCQs and MCQ MTP & PP Analysis
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FR MCQ 4
ABC Ltd. has Indian Rupee (₹) as its functional currency. At the reporting date, ₹ cannot be exchanged directly into US Dollars (USD). However, ABC Ltd. can exchange ₹ into Euros (EUR) and then exchange EUR into USD through an exchange mechanism that creates enforceable rights and obligations.
Which of the following is correct as per IND AS 21?
A. ₹ is not exchangeable into USD because there is no direct exchange between ₹ and USD.
B. ₹ is exchangeable into USD because USD can be obtained indirectly through EUR.
C. ₹ is not exchangeable into USD because two separate exchange transactions are involved.
D. ₹ is exchangeable into USD only if ABC Ltd. intends to obtain USD through the indirect route.
ABC Ltd. has Indian Rupee (₹) as its functional currency. At the reporting date, ₹ cannot be exchanged directly into US Dollars (USD). However, ABC Ltd. can exchange ₹ into Euros (EUR) and then exchange EUR into USD through an exchange mechanism that creates enforceable rights and obligations.
Which of the following is correct as per IND AS 21?
A. ₹ is not exchangeable into USD because there is no direct exchange between ₹ and USD.
B. ₹ is exchangeable into USD because USD can be obtained indirectly through EUR.
C. ₹ is not exchangeable into USD because two separate exchange transactions are involved.
D. ₹ is exchangeable into USD only if ABC Ltd. intends to obtain USD through the indirect route.
🚨 IBS 🚨
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🔥 IBS MTP 1 MCQ Analysis - DROPPING TONIGHT!
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🔥 IBS MTP 1 MCQ Analysis - DROPPING TONIGHT!
STAY TUNED @CAMcqsPractice
🔥1
IDT MCQ 1🧾
A manufacturer in Chhatrapati Sambhajinagar sends goods to a buyer in Indore, 450 km away as per the e-way bill. The transporter first fills in Part B on 10 October 2025 at 11:00 am. The truck breaks down on 12 October, and the goods move in another truck at 6:00 pm on 13 October. What should the transporter do?
A) Generate a new e-way bill, because the old one is tied to the first truck.
B) Update Part B with the new truck; the e-way bill is valid until midnight of 13 October.
C) Update Part B with the new truck; the e-way bill is valid until 11:00 am on 13 October.
D) Cancel the e-way bill and generate a new one.
Answer the poll first📊 and then check this👇
Answer - Option B
Why it's a trap: An e-way bill is valid for 1 day per 200 km or part of it, so 450 km gives 3 days. The count starts when Part B is first filled in, and each day ends at midnight of the following day, so it is valid until midnight of 13 October. Changing the truck only needs Part B updated. Cancellation is allowed only within 24 hours, and here it isn't needed anyway.
📌 ICAI set this exact trap in the May 2026 CA Final exam, Paper 5 (Indirect Tax), Q4(b).
Find out which topics cost you marks: free MCQ 1 at camcqs.com
A manufacturer in Chhatrapati Sambhajinagar sends goods to a buyer in Indore, 450 km away as per the e-way bill. The transporter first fills in Part B on 10 October 2025 at 11:00 am. The truck breaks down on 12 October, and the goods move in another truck at 6:00 pm on 13 October. What should the transporter do?
A) Generate a new e-way bill, because the old one is tied to the first truck.
B) Update Part B with the new truck; the e-way bill is valid until midnight of 13 October.
C) Update Part B with the new truck; the e-way bill is valid until 11:00 am on 13 October.
D) Cancel the e-way bill and generate a new one.
Answer the poll first📊 and then check this👇
📌 ICAI set this exact trap in the May 2026 CA Final exam, Paper 5 (Indirect Tax), Q4(b).
Find out which topics cost you marks: free MCQ 1 at camcqs.com