S1: Revaluation Account is a nominal account. S2: Revaluation Account is prepared to ascertain the profit or loss on revaluation of assets and liabilities. Which statement(s) is/are correct? MCQ with Answer and Explanation
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Question #1
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If a transaction is recorded in the Journal Proper, which of the following is the most likely scenario?
Correct Answer: Option A
Explanation:
Credit purchases of assets (like machinery) do not go into the Purchases Book (which is only for trading goods) or Cash Book (as it's a credit transaction). They are recorded in the Journal Proper.
Credit purchases of assets (like machinery) do not go into the Purchases Book (which is only for trading goods) or Cash Book (as it's a credit transaction). They are recorded in the Journal Proper.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A social audit report is:
Correct Answer: Option D
Explanation:
Social audit is mandated for certain government schemes (e.g., MGNREGA) and may be voluntary for others. It is not universally mandatory for all companies.
Social audit is mandated for certain government schemes (e.g., MGNREGA) and may be voluntary for others. It is not universally mandatory for all companies.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Provision for doubtful debts created at the year-end is debited to:
Correct Answer: Option C
Explanation:
Creating a provision is an expected indirect loss based on conservatism, so it is charged to the Profit and Loss Account.
Creating a provision is an expected indirect loss based on conservatism, so it is charged to the Profit and Loss Account.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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