A 'qualified audit report' means: MCQ with Answer and Explanation
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Practice More Accountancy and Book Keeping Questions
Question #1
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Which of the following errors does NOT affect the trial balance?
Correct Answer: Option B
Explanation:
Posting to the wrong account (error of principle or wrong personal account) keeps the debit and credit totals equal, so the trial balance still agrees.
Posting to the wrong account (error of principle or wrong personal account) keeps the debit and credit totals equal, so the trial balance still agrees.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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In the Trading Account, 'Consumable Stores' used in production are:
Correct Answer: Option B
Explanation:
Consumable stores are direct materials, so they are debited to Trading Account.
Consumable stores are direct materials, so they are debited to Trading Account.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Which of the following is an example of a 'Revenue Reserve'?
Correct Answer: Option A
Explanation:
General reserve is created from revenue profits, hence a revenue reserve. Securities premium and capital redemption reserve are capital reserves. Revaluation reserve arises from revaluation of assets, also capital.
General reserve is created from revenue profits, hence a revenue reserve. Securities premium and capital redemption reserve are capital reserves. Revaluation reserve arises from revaluation of assets, also capital.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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