The 'Consistency' concept means that: MCQ with Answer and Explanation

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The 'Consistency' concept means that:

A. Same accounting policies should be applied from one period to another

B. Different methods can be used arbitrarily

C. Accounting policies should be changed every year

D. Only cash basis should be used

Answer: Option A

Solution (By JKExamLibrary)

Consistency ensures comparability; accounting policies should be consistently applied over time, changes only for valid reasons.

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

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The 'Test of Controls' is performed when:

A. Auditor intends to rely on the entity's internal controls

B. Internal controls are weak

C. No controls exist

D. Never performed

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Correct Answer: Option A

Explanation:
Test of controls evaluates the operating effectiveness of internal controls.

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

Question #2 Report Error

The 'Sabka Vishwas' scheme was related to:

A. Customs only

B. GST only

C. Income tax

D. Indirect tax legacy disputes

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Correct Answer: Option D

Explanation:
Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 covered service tax and excise disputes.

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Question #3 Report Error

Which of the following is a personal account?

A. Rent A/c

B. Discount A/c

C. Furniture A/c

D. Capital A/c

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Correct Answer: Option D

Explanation:
Capital account represents the proprietor, hence personal account. Others are nominal or real.

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

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