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

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The 'Accounting Equation' remains intact under:

A. Cash system

B. All systems

C. Single entry only

D. Double entry system

Answer: Option D

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

The 'Modification of a Lease' is accounted for as:

A. Original lease continues

B. No accounting

C. A separate lease if it adds the right to use one or more underlying assets at a price commensurate with standalone price; otherwise remeasure

D. Termination of original lease

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Correct Answer: Option C

Explanation:
Ind AS 116 provides specific guidance for modifications.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

In the 'Finance Act, 2023', which change was introduced for the new income tax regime?

A. No change

B. Abolished the new regime

C. Increased tax rates

D. Made default tax regime with more exemptions

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Correct Answer: Option D

Explanation:
The new regime was made the default regime from FY 2023-24, with certain reliefs.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

Goodwill is classified as:

A. Current asset

B. Tangible asset

C. Intangible asset

D. Fictitious asset

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Correct Answer: Option C

Explanation:
Goodwill is an intangible asset representing the value of a business's reputation, customer relationships, etc.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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