Recent developments in accounting include the increased use of: MCQ with Answer and Explanation

Recent developments in accounting include the increased use of:
A. Single entry only
B. Manual voucher posting
C. Paper-based ledgers
D. Cloud accounting and AI
Answer: Option D
Solution (By JKSSB Mock Tests)
Technological advancements like cloud accounting, artificial intelligence, and blockchain are recent trends.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
Under Ind AS 115, 'Variable Consideration' (like bonuses or penalties) can only be included in the transaction price if:
A. The entity has received the cash for the variable consideration.
B. The customer has explicitly agreed to the variable amount in the contract.
C. The performance obligation is fully satisfied.
D. It is highly probable that a significant reversal in the amount of cumulative revenue will not occur.

Correct Answer: Option D


Explanation:
Ind AS 115 imposes a constraint on variable consideration. It can only be included in the transaction price to the extent that it is highly probable that a significant reversal of revenue will not occur when the uncertainty is resolved.

Question #2
Under the Income Tax Act, the 'TDS' on payment of rent for plant and machinery exceeding ₹1,80,000 per annum is governed by which section, and what is the rate?
A. Section 194J at 10%
B. Section 194I at 10%
C. Section 194C at 2%
D. Section 194I at 2%

Correct Answer: Option D


Explanation:
Section 194I(a) mandates TDS at 2% on rent paid for the use of plant, machinery, or equipment, provided the rent exceeds ₹1,80,000 in a financial year.

Question #3
S1: Operating leverage measures the impact of fixed costs on operating profit. S2: Financial leverage measures the impact of fixed interest costs on earnings per share. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. Both S1 and S2
C. S1 only
D. S2 only

Correct Answer: Option B


Explanation:
Operating leverage arises from fixed operating costs and affects EBIT. Financial leverage arises from fixed financial charges (interest) and affects EPS. Both statements correctly define the respective leverages.