A 'Suspense Account' is a: MCQ with Answer and Explanation

A 'Suspense Account' is a:

A. Nominal account

B. Real account

C. Personal account

D. Temporary account

Answer: Option D

Suspense account is a temporary account opened to make trial balance agree.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1 Report Error

The 'Agriculture' (Ind AS 41) requires biological assets to be measured at:

A. Net realisable value

B. Fair value less costs to sell

C. Cost

D. Historical cost

Correct Answer: Option B

Explanation:
Ind AS 41 mandates fair value measurement for biological assets.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The 'Management Letter' in audit is:

A. Tax letter

B. Communication to management on internal control weaknesses and other observations

C. Engagement letter

D. The audit report

Correct Answer: Option B

Explanation:
Management letter (letter of weakness) suggests improvements in internal controls.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

The 'Social Welfare Surcharge' is levied on:

A. Basic customs duty

B. Income tax

C. All taxes

D. GST

Correct Answer: Option A

Explanation:
Social welfare surcharge is levied on the aggregate of duties of customs, except certain items.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping