Social audit differs from financial audit mainly because: MCQ with Answer and Explanation

Social audit differs from financial audit mainly because:
A. It is done on a daily basis
B. It examines social impact and ethical behavior rather than just financial accuracy
C. It focuses solely on tax evasion
D. It is always conducted by the CAG
Answer: Option B
Solution (By JKSSB Mock Tests)
A social audit evaluates how well a company is achieving its social objectives and its impact on the community and environment.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is NOT a component of financial statements for a sole proprietorship?
A. Balance Sheet
B. Trading Account
C. Statement of Changes in Equity
D. Profit & Loss Account

Correct Answer: Option C


Explanation:
Statement of Changes in Equity is typically a required component for corporate entities under Ind AS, not for standard sole proprietorships.

Question #2
The 'Time of Supply' for services under forward charge, if invoice issued within prescribed period, is:
A. Date of invoice or date of provision of service, whichever is earlier
B. Date of completion of service
C. Due date of payment
D. Date of payment

Correct Answer: Option A


Explanation:
Time of supply is earliest of date of invoice or date of payment (if invoice not issued within period, date of provision).

Question #3
Which of the following is a feature of a cooperative society?
A. Profit maximization is the main motive
B. Managed by the government
C. Unlimited liability
D. Voluntary association with democratic management

Correct Answer: Option D


Explanation:
A cooperative society is a voluntary association of persons who join together with a service motive rather than profit, and it is managed democratically.