The 'Substantive Procedures' in audit include: MCQ with Answer and Explanation
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Question #1
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In the context of the Trial Balance, which of the following is correct?
Correct Answer: Option D
Explanation:
A Trial Balance is a statement (not an account) that summarizes all ledger balances to check arithmetical accuracy.
A Trial Balance is a statement (not an account) that summarizes all ledger balances to check arithmetical accuracy.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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Under Ind AS 2, which of the following costs are excluded from the cost of inventory and recognized as expenses in the period they are incurred?
Correct Answer: Option C
Explanation:
Ind AS 2 explicitly excludes abnormal waste, storage costs (unless necessary in the production process), administrative overheads not contributing to bringing inventories to their present location/condition, and selling costs from inventory cost.
Ind AS 2 explicitly excludes abnormal waste, storage costs (unless necessary in the production process), administrative overheads not contributing to bringing inventories to their present location/condition, and selling costs from inventory cost.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The 'Capital Redemption Reserve' is created when preference shares are redeemed out of:
Correct Answer: Option A
Explanation:
When redemption is out of profits, an equivalent amount is transferred to Capital Redemption Reserve.
When redemption is out of profits, an equivalent amount is transferred to Capital Redemption Reserve.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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