An auditor is considered a 'watchdog and not a bloodhound'. This implies: MCQ with Answer and Explanation
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Question #1
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S1: In the absence of a partnership deed, interest on partner's loan is allowed at 6% per annum. S2: In the absence of a partnership deed, interest on partner's capital is not allowed. Which statement(s) is/are correct?
Correct Answer: Option C
Explanation:
The Partnership Act 1932 mandates that if the deed is silent, interest on a partner's loan is allowed at 6% p.a., but no interest on capital is allowed. Both statements are correct.
The Partnership Act 1932 mandates that if the deed is silent, interest on a partner's loan is allowed at 6% p.a., but no interest on capital is allowed. Both statements are correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A 'Cash Generating Unit' is defined under:
Correct Answer: Option A
Explanation:
CGU is a concept used in impairment testing under AS 28.
CGU is a concept used in impairment testing under AS 28.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The 'Deferred Tax Asset' arises when:
Correct Answer: Option B
Explanation:
Deferred tax asset is recognized when accounting profit is lower than taxable profit due to timing differences, resulting in future tax savings.
Deferred tax asset is recognized when accounting profit is lower than taxable profit due to timing differences, resulting in future tax savings.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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