The 'Analytical Procedures' are required: MCQ with Answer and Explanation

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The 'Analytical Procedures' are required:

A. At planning, as substantive procedures, and at final review stage

B. Never

C. Only as substantive

D. Only at planning stage

Answer: Option A

Solution (By JKExamLibrary)

SA 520 mandates analytical procedures at these stages.

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

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

In the financial statements of a non-profit organisation, 'Capital Fund' is equivalent to:

A. Current liabilities

B. Partners' capital

C. Share capital

D. Owner's equity (net worth)

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Correct Answer: Option D

Explanation:
Capital fund represents the accumulated surplus and contributions, i.e., the net worth.

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

Question #2 Report Error

Voucher approach implies that every financial transaction must be supported by:

A. A trial balance

B. Verbal approval

C. Documentary evidence

D. An audit report

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Correct Answer: Option C

Explanation:
The essence of the voucher system is to ensure no entry is made in the books without an authentic, authorized documentary evidence (voucher).

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

Question #3 Report Error

Which of these is a Direct Tax?

A. Goods and Services Tax

B. Excise Duty

C. Customs Duty

D. Income Tax

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Correct Answer: Option D

Explanation:
Income tax is a direct tax because the liability and burden of the tax fall on the same individual.

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

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