The 'Confirmation' from debtors is an example of: MCQ with Answer and Explanation

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The 'Confirmation' from debtors is an example of:

A. Internal evidence

B. Oral evidence

C. No evidence

D. External evidence

Answer: Option D

Solution (By JKSSB Mock Tests)

Direct confirmation from third parties provides reliable external audit evidence.

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

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Question #1

The 'Faceless Penalty' scheme under income tax was introduced in:

A. 2020

B. 2021

C. 2017

D. 2019

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Correct Answer: Option B

Explanation:
Faceless penalty scheme was launched in 2021 to impart transparency.

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

Question #2

An 'Adverse Opinion' is issued when:

A. Financial statements are true and fair

B. Misstatements are pervasive and material, and financial statements do not present a true and fair view

C. Auditor is unable to obtain evidence

D. There is a limitation of scope

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Correct Answer: Option B

Explanation:
Adverse opinion indicates that financial statements are materially misstated.

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Question #3

Cash Flow Statement as per AS 3 classifies activities into:

A. Direct and Indirect

B. Operating, Investing, and Financing

C. Current and Non-current

D. Revenue and Capital

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Correct Answer: Option B

Explanation:
AS 3 requires classification into operating, investing, and financing activities.

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

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