A: Internal check is a system of routine checks on the work of staff. R: Internal check is the same as internal audit. Choose the correct option. MCQ with Answer and Explanation

A: Internal check is a system of routine checks on the work of staff. R: Internal check is the same as internal audit. 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. Both A and R are true but R is NOT the correct explanation of A
D. A is true but R is false
Answer: Option D
Solution (By JKSSB Mock Tests)
Internal check is a continuous, routine system where the work of one employee is automatically checked by another. Internal audit is a separate, continuous appraisal system by specialized staff. They are not the same. A is true, R is false.

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Practice More Accountancy and Book Keeping Questions

Question #1
In financial management, the 'Degree of Operating Leverage' (DOL) at a given level of sales is calculated as:
A. Contribution / Net Profit
B. Contribution / EBIT
C. Sales / Contribution
D. EBIT / Net Profit

Correct Answer: Option B


Explanation:
The Degree of Operating Leverage (DOL) measures the sensitivity of EBIT to changes in sales. It is calculated as Contribution divided by EBIT (Earnings Before Interest and Taxes).

Question #2
A debit balance in a personal account of a creditor indicates:
A. Amount payable to him
B. Amount receivable from him
C. Both B and C
D. He has become debtor

Correct Answer: Option C


Explanation:
A creditor account with debit balance means the firm has paid excess or he owes money, so he is a debtor.

Question #3
The debt-equity ratio is calculated as:
A. Total Debts / Shareholders' Equity
B. Long-term Debts / Shareholders' Equity
C. Total Assets / Shareholders' Equity
D. Current Liabilities / Shareholders' Equity

Correct Answer: Option B


Explanation:
The debt-equity ratio typically measures long-term solvency and is calculated as Long-term Debts divided by Shareholders' Equity.