The audit of a company's accounts is conducted by: MCQ with Answer and Explanation

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The audit of a company's accounts is conducted by:

A. Government auditor

B. Statutory auditor appointed by shareholders

C. Internal auditor

D. Cost auditor

Answer: Option B

Solution (By JKSSB Mock Tests)

Statutory audit is carried out by an independent auditor appointed by the shareholders.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

Which of the following is a feature of standard costing?

A. It is a historical cost system

B. It is used for external reporting

C. It ignores variances

D. It uses predetermined costs for control purposes

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Correct Answer: Option D

Explanation:
Standard costing uses predetermined (standard) costs to compare with actual costs, allowing for variance analysis and cost control.

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

Question #2

If a partner's capital account shows a debit balance at the end, it means:

A. The firm owes money to the partner

B. Partner has withdrawn less

C. The partner owes money to the firm

D. Partner has made profit

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Correct Answer: Option C

Explanation:
A debit balance in a partner's capital (current) account indicates a net debit, i.e., the partner is indebted to the firm.

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

Question #3

Which of the following is an 'Accounting Estimate'?

A. Revenue recognition policy

B. Depreciation method

C. Useful life of an asset

D. Inventory valuation method

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Correct Answer: Option C

Explanation:
Useful life is an estimate; depreciation method is an accounting policy.

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

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