Under the double-entry system, a decrease in an asset is recorded by: MCQ with Answer and Explanation
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Question #1
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Which of the following is a capital profit?
Correct Answer: Option C
Explanation:
Profit on sale of a capital asset (like long-term investment) is capital profit. Profit on sale of goods is revenue.
Profit on sale of a capital asset (like long-term investment) is capital profit. Profit on sale of goods is revenue.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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Which of the following is NOT one of the 5 heads of income under the Income Tax Act?
Correct Answer: Option D
Explanation:
The 5 heads are: Salaries, House Property, Profits and Gains of Business/Profession, Capital Gains, and Other Sources.
The 5 heads are: Salaries, House Property, Profits and Gains of Business/Profession, Capital Gains, and Other Sources.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Which audit assesses whether management's policies and procedures are operating efficiently?
Correct Answer: Option C
Explanation:
Management audit focuses on the efficiency, effectiveness, and performance of management processes, beyond just financial accuracy.
Management audit focuses on the efficiency, effectiveness, and performance of management processes, beyond just financial accuracy.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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