Legacy donation is generally treated as: MCQ with Answer and Explanation

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Legacy donation is generally treated as:

A. Capital receipt

B. Revenue receipt

C. Deferred revenue

D. Liability

Answer: Option A

Solution (By JKSSB Mock Tests)

Legacy is a voluntary contribution of a significant nature, usually treated as capital receipt.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

The 'Management Letter' in audit is:

A. Tax letter

B. The audit report

C. Communication to management on internal control weaknesses and other observations

D. Engagement letter

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Correct Answer: Option C

Explanation:
Management letter (letter of weakness) suggests improvements in internal controls.

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

Question #2

The term 'Audit' originates from the Latin word:

A. Audire

B. Audito

C. Auditas

D. Auditare

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Correct Answer: Option A

Explanation:
The word 'audit' comes from the Latin 'audire' meaning 'to hear'.

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

Question #3

The term 'Amalgamation' in partnership refers to:

A. Insolvency of a partner

B. Retirement of a partner

C. Combination of two or more partnership firms

D. Dissolution of the firm

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Correct Answer: Option C

Explanation:
Amalgamation occurs when two or more existing partnership firms decide to merge their businesses into a new partnership firm.

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

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