Assertion (A): Under Ind AS 21, the functional currency of an entity is the currency of the primary economic environment in which the entity operates. Reason (R): The presentation currency can be different from the functional currency, and financial statements can be translated into any currency for presentation. Choose the correct option. MCQ with Answer and Explanation
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Question #1
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A 'Letter of Credit' is a:
Correct Answer: Option B
Explanation:
Letter of credit is a bank's commitment to pay the seller on behalf of buyer, reducing risk.
Letter of credit is a bank's commitment to pay the seller on behalf of buyer, reducing risk.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The 'Duty Drawback' scheme under Customs provides:
Correct Answer: Option D
Explanation:
Duty drawback refunds customs/excise duties paid on inputs used in exported products.
Duty drawback refunds customs/excise duties paid on inputs used in exported products.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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If the Trial Balance totals do not match, the difference is temporarily transferred to:
Correct Answer: Option A
Explanation:
When the Trial Balance disagrees, the difference is placed in a Suspense Account to allow the preparation of final accounts. The suspense account is cleared once the errors are located and rectified.
When the Trial Balance disagrees, the difference is placed in a Suspense Account to allow the preparation of final accounts. The suspense account is cleared once the errors are located and rectified.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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