S1: Flexible budget is prepared for a single level of activity. S2: Flexible budget is prepared for a range of activity levels. Which statement(s) is/are correct? MCQ with Answer and Explanation

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S1: Flexible budget is prepared for a single level of activity. S2: Flexible budget is prepared for a range of activity levels. Which statement(s) is/are correct?

A. S1 only

B. Neither S1 nor S2

C. S2 only

D. Both S1 and S2

Answer: Option C

Solution (By JKExamLibrary)

A Fixed Budget is prepared for a single, predetermined level of activity. A Flexible Budget is designed to change with the level of activity and is prepared for a range of activity levels. S1 is incorrect, S2 is correct.

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

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The accounting treatment for loss by fire of uninsured goods is:

A. Debit Capital A/c

B. No entry

C. Debit Trading A/c

D. Debit Profit & Loss A/c

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Correct Answer: Option D

Explanation:
Loss by fire is abnormal loss, charged to Profit & Loss Account, not to Trading Account.

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

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The use of artificial intelligence (AI) in accounting is currently transforming:

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Explanation:
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