The 'Arm's Length Price' is: MCQ with Answer and Explanation

Question
The 'Arm's Length Price' is:
A. Price that would be charged between unrelated parties
B. Price charged between related parties
C. Market price
D. Government fixed price
Answer: Option A
Solution (By JKSSB Mock Tests)
Arm's length price is the price applied in a transaction between independent parties under similar conditions.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Taxpayer's Charter' in India is a part of:
A. Income Tax Act
B. Finance Act, 2020
C. Companies Act
D. GST Act
Discuss
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Correct Answer: Option B

Explanation:
Taxpayer's Charter was introduced as part of the Finance Act, 2020, outlining rights and obligations of taxpayers.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Employee Benefits' (Ind AS 19) includes:
A. Short-term benefits, post-employment benefits, other long-term benefits, termination benefits
B. Only pension
C. Only gratuity
D. Only wages
Discuss
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Correct Answer: Option A

Explanation:
Ind AS 19 covers various types of employee benefits.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
In 'Standard Costing', the formula for 'Material Usage Variance' is:
A. Standard Price × (Standard Quantity - Actual Quantity)
B. Standard Quantity × (Standard Price - Actual Price)
C. Actual Quantity × (Standard Price - Actual Price)
D. Actual Price × (Standard Quantity - Actual Quantity)
Discuss
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Correct Answer: Option A

Explanation:
Material usage variance = SP (SQ - AQ).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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