A 'Change in Accounting Estimate' is applied: MCQ with Answer and Explanation

A 'Change in Accounting Estimate' is applied:
A. Adjusting opening reserves
B. With restatement
C. Prospectively
D. Retrospectively
Answer: Option C
Solution (By JKSSB Mock Tests)
Changes in accounting estimates are recognized prospectively in current and future periods.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Health and Education Cess' is levied at:
A. 4% of tax
B. 2% of tax
C. 1%
D. 10%

Correct Answer: Option A


Explanation:
Health and Education Cess at 4% is levied on income tax (including surcharge).

Question #2
S1: GST is a destination-based consumption tax. S2: GST is levied only at the central level. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S2 only
C. Both S1 and S2
D. S1 only

Correct Answer: Option D


Explanation:
GST is a destination-based tax, meaning the revenue goes to the state where the goods are consumed, not where they are produced. It is a dual GST, levied by both the Centre (CGST) and States (SGST). S1 is correct, S2 is incorrect.

Question #3
S1: In the context of PFMS, the 'Aadhaar Enabled Payment System' (AePS) allows bank transactions using only the Aadhaar number. S2: AePS requires the beneficiary to have a micro-ATM or PoS device for authentication. Which statement(s) is/are correct?
A. Both S1 and S2
B. S2 only
C. S1 only
D. Neither S1 nor S2

Correct Answer: Option A


Explanation:
AePS allows online interoperable financial inclusion transactions at micro-ATMs/PoS using Aadhaar authentication. Both statements accurately describe the AePS mechanism under PFMS/DBT.