S1: Vouching is the examination of documentary evidence of transactions. R: Vouching ensures that transactions are authorized and properly recorded. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: Vouching is the examination of documentary evidence of transactions. R: Vouching ensures that transactions are authorized and properly recorded. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S1 only
C. Both S1 and S2
D. S2 only
Answer: Option C
Solution (By JKSSB Mock Tests)
Vouching is the primary audit procedure involving the inspection of vouchers (receipts, invoices) to verify the authenticity of transactions. It ensures transactions are authorized, accurate, and recorded. Both are correct.
Explanation:
If drawings are made in the beginning of every month, average period = (12+1)/2 = 6.5 months. Total drawings = 5000*12 = 60,000. Interest = 60,000 * 12% * 6.5/12 = 60000 * 0.12 * 0.54167 = ₹3,900.
Explanation:
Cash flow statements can be prepared using the Direct or Indirect method. FIFO is an inventory valuation method, not a cash flow statement method.
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