Income and Expenditure Account is equivalent to: MCQ with Answer and Explanation

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Income and Expenditure Account is equivalent to:

A. Profit and Loss Account

B. Cash Book

C. Trading Account

D. Balance Sheet

Answer: Option A

Solution (By JKSSB Mock Tests)

Income and Expenditure Account reveals surplus or deficit for a period, similar to P&L Account.

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

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Question #1

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S1: Income Tax is a direct tax. S2: Income Tax is levied by the State Governments in India. Which statement(s) is/are correct?

A. Neither S1 nor S2

B. S1 only

C. Both S1 and S2

D. S2 only

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Correct Answer: Option B

Explanation:
Income Tax is a direct tax levied on the income of individuals and entities. However, it is levied and collected by the Central Government, not the State Governments. S1 is correct, S2 is incorrect.

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Question #2

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The 'Joint Arrangements' (Ind AS 111) are classified as:

A. Only joint ventures

B. Associates

C. Only joint operations

D. Joint ventures and joint operations

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Correct Answer: Option D

Explanation:
Ind AS 111 classifies joint arrangements based on rights and obligations.

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Question #3

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The 'Concept of Prudence' under Ind AS is:

A. A fundamental accounting assumption

B. Not specifically identified as a separate concept; neutrality overrides prudence

C. An overriding principle

D. Always applied

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Correct Answer: Option B

Explanation:
The Conceptual Framework under Ind AS/IFRS does not include prudence as a separate qualitative characteristic; it emphasises neutrality.

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