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.

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Practice More Accountancy and Book Keeping Questions

Question #1
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
C. Satisfy management
D. Meet legal requirement

Correct Answer: Option B


Explanation:
As per SA 230, working papers must stand alone.

Question #2
The 'Comptroller and Auditor General' (CAG) is not responsible for audit of:
A. Government departments
B. Government companies
C. Autonomous bodies substantially financed by government
D. Public sector banks (statutory audit by CA firms)

Correct Answer: Option D


Explanation:
Statutory audit of public sector banks is conducted by chartered accountant firms appointed by RBI/Central Government; CAG conducts supplementary audit.

Question #3
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

Correct Answer: Option D


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.