Notes to Accounts are provided to: MCQ with Answer and Explanation

Question
Notes to Accounts are provided to:
A. Make the balance sheet look longer
B. Replace the Trial Balance
C. Calculate daily cash flow
D. Provide detailed disclosures and accounting policies
Answer: Option D
Solution (By JKSSB Mock Tests)
Notes to Accounts offer detailed breakdowns, accounting policies, and explanatory information supporting the numbers in the financial statements.
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 'Presumptive Taxation' under Section 44AD is at 8% of turnover for:
A. All businesses
B. LLPs
C. Eligible businesses with turnover up to ₹2 crore
D. Companies
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Correct Answer: Option C

Explanation:
Section 44AD applies to resident individuals/HUFs/firms (except LLP) carrying on eligible business.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Under the Income Tax Act, the 'TDS' on payment of interest on securities (other than 8% taxable government securities) is governed by which section?
A. Section 194
B. Section 194A
C. Section 194C
D. Section 194J
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Correct Answer: Option A

Explanation:
Section 194 of the Income Tax Act mandates TDS on income by way of interest on securities (like debentures, corporate bonds) at the prescribed rates.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'External Confirmation' from a bank is an example of:
A. Internal evidence
B. External evidence obtained directly by the auditor
C. Analytical procedure
D. Oral evidence
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Correct Answer: Option B

Explanation:
Direct confirmation from bank is highly reliable.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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