Depreciation is provided on: MCQ with Answer and Explanation
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Question #1
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S1: Vouching is the examination of documentary evidence. S2: Verification is the proof of ownership, existence, and valuation of assets. Which statement(s) is/are correct?
Correct Answer: Option C
Explanation:
Vouching involves checking vouchers to verify the authenticity of transactions. Verification goes beyond vouching to confirm the physical existence, legal ownership, and proper valuation of assets and liabilities at the balance sheet date. Both are correct.
Vouching involves checking vouchers to verify the authenticity of transactions. Verification goes beyond vouching to confirm the physical existence, legal ownership, and proper valuation of assets and liabilities at the balance sheet date. Both are correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A favourable variance in materials cost indicates that:
Correct Answer: Option A
Explanation:
Favourable means beneficial to profit, which happens when actual costs are lower than standard expected costs.
Favourable means beneficial to profit, which happens when actual costs are lower than standard expected costs.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Under the Income Tax Act, if a house property is self-occupied, what is the Annual Value of that property?
Correct Answer: Option D
Explanation:
Under Section 23(2) of the Income Tax Act, if a house property is used for the owner's own residence (self-occupied), its Annual Value is taken as Nil (Zero).
Under Section 23(2) of the Income Tax Act, if a house property is used for the owner's own residence (self-occupied), its Annual Value is taken as Nil (Zero).
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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