The 'Stratified Sampling' in audit: MCQ with Answer and Explanation

Question Report Error

The 'Stratified Sampling' in audit:

A. Selects all high-value items

B. Ignores low-value items

C. Selects items randomly

D. Divides the population into homogeneous subgroups and selects samples from each

Answer: Option D

Solution (By JKExamLibrary)

Stratification improves audit efficiency by grouping items with similar characteristics.

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

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

Which inventory valuation method is not permitted under Ind AS 2?

A. FIFO

B. LIFO

C. Specific identification

D. Weighted Average

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Correct Answer: Option B

Explanation:
Ind AS 2 does not permit LIFO as an acceptable method for inventory valuation.

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

Question #2 Report Error

The 'Financial Instruments' (Ind AS 109) classify financial assets into:

A. Amortised cost, Fair value through OCI, Fair value through P&L

B. Only HTM and trading

C. Only equity

D. Only loans and receivables

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Correct Answer: Option A

Explanation:
Ind AS 109 classification is based on business model and contractual cash flows.

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

Question #3 Report Error

The process of recording transactions in the journal is called:

A. Footing

B. Journalizing

C. Balancing

D. Posting

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Correct Answer: Option B

Explanation:
Journalizing is the process of recording business transactions chronologically in the journal, which is the book of original entry.

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

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