The 'Audit Documentation' (working papers) is the property of: MCQ with Answer and Explanation
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Question #1
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Under the Single Entry System, if opening capital is Rs 1,00,000, closing capital is Rs 90,000, and drawings are Rs 30,000 (no fresh capital), the profit is:
Correct Answer: Option D
Explanation:
Profit = Closing Cap + Drawings - Opening Cap = 90,000 + 30,000 - 1,00,000 = Rs 20,000.
Profit = Closing Cap + Drawings - Opening Cap = 90,000 + 30,000 - 1,00,000 = Rs 20,000.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The 'Return on Investment' (ROI) formula is:
Correct Answer: Option A
Explanation:
ROI = Net profit before interest and tax / Capital employed, or sometimes PAT/CE. Typically, Net profit / Capital employed.
ROI = Net profit before interest and tax / Capital employed, or sometimes PAT/CE. Typically, Net profit / Capital employed.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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An 'Error of Principle' occurs when:
Correct Answer: Option D
Explanation:
Error of principle violates accounting principles, e.g., incorrect classification between capital and revenue.
Error of principle violates accounting principles, e.g., incorrect classification between capital and revenue.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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