The 'Operating Profit' is calculated as: MCQ with Answer and Explanation
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Question #1
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If rent paid is Rs 10,000 and prepaid rent at year-end is Rs 2,000, what is the rent expense for the current year under accrual accounting?
Correct Answer: Option D
Explanation:
Current year expense = Paid amount - Prepaid for next year = 10,000 - 2,000 = Rs 8,000.
Current year expense = Paid amount - Prepaid for next year = 10,000 - 2,000 = Rs 8,000.
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Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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S1: Ind AS 1 deals with Presentation of Financial Statements. S2: Ind AS 101 deals with First-time Adoption of Ind AS. Which statement(s) is/are correct?
Correct Answer: Option C
Explanation:
Ind AS 1 prescribes the basis for presentation of general purpose financial statements. Ind AS 101 provides the procedures for an entity adopting Ind AS for the first time. Both statements correctly identify the standards.
Ind AS 1 prescribes the basis for presentation of general purpose financial statements. Ind AS 101 provides the procedures for an entity adopting Ind AS for the first time. Both statements correctly identify the standards.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The term 'Outstanding Expense' is treated as:
Correct Answer: Option D
Explanation:
Outstanding expenses are expenses incurred but not yet paid, making them a current liability for the business.
Outstanding expenses are expenses incurred but not yet paid, making them a current liability for the business.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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