A: The Accounting Equation is Assets = Liabilities + Capital. R: This equation is based on the Dual Aspect Concept. Choose the correct option. MCQ with Answer and Explanation

A: The Accounting Equation is Assets = Liabilities + Capital. R: This equation is based on the Dual Aspect Concept. Choose the correct option.
A. A is false but R is true
B. A is true but R is false
C. Both A and R are true but R is NOT the correct explanation of A
D. Both A and R are true and R is the correct explanation of A
Answer: Option D
Solution (By JKSSB Mock Tests)
The accounting equation represents the balance sheet. It is derived from the Dual Aspect Concept, which states that every transaction has two equal and opposite effects, ensuring the equation always balances. R correctly explains A.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Place of Supply' rules under GST determine:
A. Exemption
B. The tax rate
C. The value of supply
D. Whether supply is intra-state or inter-state

Correct Answer: Option D


Explanation:
Place of supply determines whether IGST or CGST+SGST applies.

Question #2
The full form of GAAP is:
A. Generally Accepted Accounting Procedures
B. Generally Accepted Auditing Principles
C. Global Accounting and Auditing Practices
D. Generally Accepted Accounting Principles

Correct Answer: Option D


Explanation:
GAAP stands for Generally Accepted Accounting Principles.

Question #3
The 'Segment Reporting' (AS 17) applies to:
A. All entities
B. Only non-profit organisations
C. Listed companies and those in the process of listing
D. Only small companies

Correct Answer: Option C


Explanation:
AS 17 is mandatory for listed and soon-to-be-listed enterprises.