The concept of 'Going Concern' assumes that: MCQ with Answer and Explanation

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The concept of 'Going Concern' assumes that:

A. The business will continue operations indefinitely

B. Profits are not important

C. The business will be liquidated soon

D. The business is not viable

Answer: Option A

Solution (By JKSSB Mock Tests)

Going concern concept assumes that the enterprise will continue in operation for the foreseeable future, and has no intention to liquidate.

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

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Question #1

The 'Physical Verification' of inventory is a part of:

A. Substantive procedure

B. None

C. Internal control evaluation

D. Compliance procedure

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Correct Answer: Option A

Explanation:
Physical verification is a substantive audit procedure to verify existence of inventory.

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

Question #2

The 'FEMA' (Foreign Exchange Management Act) came into effect in:

A. 2000

B. 2013

C. 1999

D. 1991

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Correct Answer: Option C

Explanation:
FEMA was enacted in 1999, replacing FERA.

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Question #3

The 'Retention Period' for audit working papers is generally:

A. No requirement

B. 1 year

C. 10 years

D. 7 years (or as per SQC 1)

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Correct Answer: Option D

Explanation:
As per ICAI's Standard on Quality Control, retention period is at least 7 years.

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

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