S1: Vouching checks the arithmetical accuracy of the books. S2: Vouching checks the authenticity of the transactions. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: Vouching checks the arithmetical accuracy of the books. S2: Vouching checks the authenticity of the transactions. Which statement(s) is/are correct?
A. Both S1 and S2
B. Neither S1 nor S2
C. S1 only
D. S2 only
Answer: Option D
Solution (By JKSSB Mock Tests)
Vouching is the examination of documentary evidence to verify the authenticity and accuracy of transactions, not their arithmetical accuracy (which is checked by the Trial Balance). S1 is incorrect, S2 is correct.

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B. Cash basis and Accrual basis
C. Indian GAAP and IFRS
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Correct Answer: Option B


Explanation:
In a hybrid system, typically incomes are recorded on a cash basis while expenses are recorded on an accrual basis.

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Correct Answer: Option C


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Section 80D allows deduction for medical insurance premium.

Question #3
The 'Closing Stock' is valued on the basis of:
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C. Net realizable value only
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Correct Answer: Option B


Explanation:
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