S1: Cost audit is mandatory for all companies in India. S2: Cost audit is conducted to verify the accuracy of cost records. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: Cost audit is mandatory for all companies in India. S2: Cost audit is conducted to verify the accuracy of cost records. Which statement(s) is/are correct?
A. S2 only
B. Neither S1 nor S2
C. S1 only
D. Both S1 and S2
Answer: Option A
Solution (By JKSSB Mock Tests)
Cost audit is not mandatory for all companies; it is only required for specific classes of companies (like those in regulated sectors or manufacturing) as prescribed by the Central Government. S2 is correct as it verifies cost records. S1 is incorrect.
Explanation:
Cash-based accounting is very simple to maintain as it only records actual cash inflows and outflows, ignoring credit transactions and accruals.
No comments yet. Be the first to start the discussion!