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. Both S1 and S2
C. S1 only
D. Neither S1 nor 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.
S1: Under Ind AS 109, the Expected Credit Loss (ECL) model requires recognition of 12-month ECL for all financial assets initially. S2: If there is a significant increase in credit risk since initial recognition, lifetime ECL must be recognized. Which statement(s) is/are correct?
Explanation:
Ind AS 109 mandates a three-stage ECL model. Stage 1 requires 12-month ECL initially, and Stage 2 requires lifetime ECL if there is a significant increase in credit risk. Both statements are correct.
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