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

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A 'Change in Accounting Estimate' is applied:

A. Retrospectively

B. Adjusting opening reserves

C. Prospectively

D. With restatement

Answer: Option C

Solution (By JKSSB Mock Tests)

Changes in accounting estimates are recognized prospectively in current and future periods.

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

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Question #1

The 'Stratified Sampling' in audit is used to:

A. Ignore sampling

B. Select all items

C. Select a representative sample from sub-populations

D. Audit only large value items

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Correct Answer: Option C

Explanation:
Stratification divides population into subgroups with similar characteristics to improve audit efficiency.

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

Question #2

In the context of recent developments, what is the convergence of Ind-AS with?

A. Chinese Accounting Standards

B. US GAAP

C. IFRS

D. UK GAAP

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Correct Answer: Option C

Explanation:
Ind-AS (Indian Accounting Standards) are converged with IFRS (International Financial Reporting Standards) issued by the IASB.

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Question #3

The 'Faceless Assessment' in income tax aims to:

A. Decrease tax rates

B. Eliminate physical interface between taxpayer and tax authorities

C. Increase face-to-face meetings

D. Simplify GST

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Correct Answer: Option B

Explanation:
Faceless assessment uses technology-driven anonymized scrutiny to reduce corruption and harassment.

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

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