The 'Cost Accounting Standards' are issued by: MCQ with Answer and Explanation

The 'Cost Accounting Standards' are issued by:

A. Institute of Cost Accountants of India (ICMAI)

B. MCA

C. ICAI

D. SEBI

Answer: Option A

ICMAI (formerly ICWAI) issues Cost Accounting Standards.

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

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Question #1 Report Error

The 'Income Tax Return' form for individuals having salary and one house property is:

A. ITR-2

B. ITR-3

C. ITR-4

D. ITR-1 (Sahaj)

Correct Answer: Option D

Explanation:
ITR-1 is for individuals with salary, one house property, other sources, total income up to ₹50 lakh.

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

Question #2 Report Error

Creating a provision for doubtful debts is an application of which accounting convention?

A. Conservatism

B. Consistency

C. Materiality

D. Full Disclosure

Correct Answer: Option A

Explanation:
Conservatism (Prudence) requires anticipating potential future losses (like bad debts) and providing for them immediately.

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

Question #3 Report Error

Which of the following is a method of costing used in the ship-building industry?

A. Contract costing

B. Job costing

C. Batch costing

D. Process costing

Correct Answer: Option A

Explanation:
Ship-building is a long-term contract, so contract costing is appropriate.

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