The 'Accounting Equation' remains intact under: MCQ with Answer and Explanation

Question
The 'Accounting Equation' remains intact under:
A. All systems
B. Cash system
C. Double entry system
D. Single entry only
Answer: Option C
Solution (By JKSSB Mock Tests)
Double entry system always maintains the balance of accounting equation. Single entry does not.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
Ind AS in India are converged with:
A. UK GAAP
B. US GAAP
C. ASB standards only
D. IFRS
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Correct Answer: Option D

Explanation:
Indian Accounting Standards (Ind AS) are converged with International Financial Reporting Standards (IFRS).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Labour Efficiency Variance' is computed as:
A. Standard Hours × (Standard Rate - Actual Rate)
B. Actual Hours × (Standard Rate - Actual Rate)
C. Standard Rate × (Standard Hours - Actual Hours)
D. Actual Rate × (Standard Hours - Actual Hours)
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Correct Answer: Option C

Explanation:
Labour efficiency variance = SR (SH - AH).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
If total assets are Rs 5,00,000 and outside liabilities are Rs 2,00,000, what is the owner's equity?
A. Rs 2,00,000
B. Rs 2,50,000
C. Rs 7,00,000
D. Rs 3,00,000
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Correct Answer: Option D

Explanation:
According to the accounting equation (Assets = Liabilities + Equity), Equity = 5,00,000 - 2,00,000 = Rs 3,00,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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