Assertion (A): Single Entry System is considered unscientific. Reason (R): It does not strictly follow the dual aspect principle for all transactions. MCQ with Answer and Explanation
Assertion (A): Single Entry System is considered unscientific. Reason (R): It does not strictly follow the dual aspect principle for all transactions.
A. Both A and R are true and R is the correct explanation of A
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. A is false but R is true
Answer: Option A
Solution (By JKSSB Mock Tests)
Single entry is unscientific and incomplete because it ignores the two-fold aspect (debit and credit) for many transactions, maintaining only cash and personal accounts.
The 'Audit Documentation' should be sufficient to:
A.Only remind the auditor
B.Enable an experienced auditor, having no previous connection with the audit, to understand the nature, timing, extent of procedures, results, and conclusions
Explanation:
Statutory audit of public sector banks is conducted by chartered accountant firms appointed by RBI/Central Government; CAG conducts supplementary audit.
Under the Companies Act 2013, the 'National Company Law Tribunal' (NCLT) has the power to approve schemes of amalgamation. Before approving, it must receive a report from:
A.The Securities and Exchange Board of India
B.The Reserve Bank of India
C.The Registrar of Companies
D.The Official Liquidator or a person designated by the Central Government
Explanation:
Section 232 of the Companies Act requires the NCLT to receive a report from the Official Liquidator or a designated expert regarding the affairs of the company and whether the scheme prejudices the interests of members or creditors.
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