The 'Going Concern Concept' implies: MCQ with Answer and Explanation
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Practice More Accountancy and Book Keeping Questions
Question #1
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In the Trading Account, which of the following is not debited?
Correct Answer: Option B
Explanation:
Octroi on goods sold is a selling expense, debited to P&L Account, not Trading Account. Octroi on purchases is direct expense.
Octroi on goods sold is a selling expense, debited to P&L Account, not Trading Account. Octroi on purchases is direct expense.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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S1: Zero-Based Budgeting (ZBB) starts with a zero base for every new period. S2: Flexible Budget is prepared for a single level of activity. Which statement(s) is/are correct?
Correct Answer: Option B
Explanation:
ZBB requires justifying all expenses from scratch (zero base) for each period. A Flexible Budget is designed to change with different levels of activity, not a single level (which is a Fixed Budget). S1 is correct, S2 is incorrect.
ZBB requires justifying all expenses from scratch (zero base) for each period. A Flexible Budget is designed to change with different levels of activity, not a single level (which is a Fixed Budget). S1 is correct, S2 is incorrect.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The term 'Secret Reserves' are created by:
Correct Answer: Option C
Explanation:
Secret reserves are created by undervaluing assets or overvaluing liabilities, which reduces reported profits and hides the true financial position.
Secret reserves are created by undervaluing assets or overvaluing liabilities, which reduces reported profits and hides the true financial position.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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