Accounting data is considered 'Relevant' if it: MCQ with Answer and Explanation
Question
Report Error
Discuss this Question (0)
Practice More Accountancy and Book Keeping Questions
Question #1
Report Error
Which of the following is a 'period cost'?
Correct Answer: Option D
Explanation:
Period costs are not tied to production volume and are expensed in the period incurred. Office rent is a period cost.
Period costs are not tied to production volume and are expensed in the period incurred. Office rent is a period cost.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
Report Error
Which of the following statements best describes the 'Money Measurement Concept'?
Correct Answer: Option B
Explanation:
The money measurement concept states that only those transactions which can be expressed in monetary terms are recorded in the books of accounts.
The money measurement concept states that only those transactions which can be expressed in monetary terms are recorded in the books of accounts.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
Report Error
S1: Under GST, the Reverse Charge Mechanism (RCM) is applicable on the supply of notified services by an unregistered person to a registered person. S2: Under RCM, the recipient of the service is liable to pay GST and can also claim ITC on the same, subject to normal ITC rules. Which statement(s) is/are correct?
Correct Answer: Option D
Explanation:
Both statements are correct. RCM shifts the liability to pay GST to the recipient for notified services from unregistered suppliers, and the recipient can claim ITC if the service is used for business and not blocked under Section 17(5).
Both statements are correct. RCM shifts the liability to pay GST to the recipient for notified services from unregistered suppliers, and the recipient can claim ITC if the service is used for business and not blocked under Section 17(5).
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
No comments yet. Be the first to start the discussion!