The 'Safe Harbour Rules' under transfer pricing provide: MCQ with Answer and Explanation
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Practice More Accountancy and Book Keeping Questions
Question #1
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Which of the following is not a purpose of financial audit?
Correct Answer: Option B
Explanation:
Preparation of financial statements is management's responsibility. Auditor expresses opinion on them.
Preparation of financial statements is management's responsibility. Auditor expresses opinion on them.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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Which of the following is a fixed cost?
Correct Answer: Option D
Explanation:
Depreciation on plant (usually calculated on a straight-line basis) is a fixed cost as it does not vary with the level of production in the short term.
Depreciation on plant (usually calculated on a straight-line basis) is a fixed cost as it does not vary with the level of production in the short term.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Interest on a bank loan accrued but not paid at year-end is shown in the final accounts by:
Correct Answer: Option D
Explanation:
Accrued interest is an expense for the year (Debit P&L) and an outstanding liability (Added to loan or shown separately in Balance Sheet).
Accrued interest is an expense for the year (Debit P&L) and an outstanding liability (Added to loan or shown separately in Balance Sheet).
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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