An audit that is conducted between two annual audits is called: MCQ with Answer and Explanation

An audit that is conducted between two annual audits is called:

A. Interim audit

B. Final audit

C. Statutory audit

D. Continuous audit

Answer: Option A

Interim audit is performed in between the year, often for dividend declaration or half-yearly results.

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

No comments yet. Be the first to start the discussion!

Question #1 Report Error

If fixed costs are Rs 1,00,000, selling price is Rs 20, and variable cost is Rs 10 per unit, the Break-Even Sales in Rupees is:

A. Rs 1,00,000

B. Rs 2,00,000

C. Rs 50,000

D. Rs 10,000

Correct Answer: Option B

Explanation:
Contribution per unit = 20 - 10 = Rs 10. BEP (Units) = 1,00,000 / 10 = 10,000 units. BEP (Sales) = 10,000 * 20 = Rs 2,00,000.

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

Question #2 Report Error

An unregistered partnership firm cannot sue third parties, but:

A. It cannot be sued

B. It has no legal existence

C. It cannot enter contracts

D. It can be sued

Correct Answer: Option D

Explanation:
An unregistered firm cannot sue, but third parties can sue the firm.

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

Question #3 Report Error

Under 'Operating Lease', the asset is shown in the books of:

A. Lessee

B. Both

C. Lessor

D. None

Correct Answer: Option C

Explanation:
In operating lease, lessor retains ownership and asset is in his books.

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