A 'Clean Report' issued by an auditor is also known as an: MCQ with Answer and Explanation

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A 'Clean Report' issued by an auditor is also known as an:

A. Disclaimer of Opinion

B. Adverse Opinion

C. Unqualified Opinion

D. Qualified Opinion

Answer: Option C

Solution (By JKSSB Mock Tests)

An unqualified opinion indicates the auditor found the financial statements to be free from material misstatements and in accordance with GAAP.

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

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Question #1

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A: Zero-Based Budgeting requires justification for all expenses. R: It starts with a zero base for every new period. Choose the correct option.

A. Both A and R are true and R is the correct explanation of A

B. A is false but R is true

C. A is true but R is false

D. Both A and R are true but R is NOT the correct explanation of A

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Correct Answer: Option A

Explanation:
ZBB requires managers to justify every item of expenditure from scratch. This is because it starts with a 'zero base' for each new period, rather than using the previous year's budget as a baseline. R correctly explains A.

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Question #2

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Direct taxes are progressive in nature because:

A. They are collected indirectly

B. Rate increases with income level

C. Rate is same for all

D. They are only on goods

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Correct Answer: Option B

Explanation:
Direct taxes like income tax have higher rates for higher income slabs, making them progressive.

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Question #3

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In partnership, the 'Goodwill' of the firm represents:

A. The physical assets of the firm

B. The liabilities of the firm

C. The cash balance of the firm

D. The reputation and brand value of the firm

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Correct Answer: Option D

Explanation:
Goodwill is an intangible asset that represents the value of the firm's reputation, customer attraction, and brand name.

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