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

The 'Confirmation' from debtors is an example of:
A. Internal evidence
B. Oral evidence
C. External evidence
D. No evidence
Answer: Option C
Solution (By JKSSB Mock Tests)
Direct confirmation from third parties provides reliable external audit evidence.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is NOT a type of audit report?
A. Profitable Report
B. Unqualified Report
C. Qualified Report
D. Adverse Report

Correct Answer: Option A


Explanation:
Audit reports can be unqualified (clean), qualified, adverse, or a disclaimer of opinion. There is no such thing as a 'Profitable Report'.

Question #2
Under the Income Tax Act, the 'TDS' on payment of professional fees exceeding ₹30,000 in a financial year is governed by which section, and what is the rate for individuals/HUFs?
A. Section 194C at 1%
B. Section 194J at 2%
C. Section 194Q at 0.1%
D. Section 194J at 10%

Correct Answer: Option D


Explanation:
Section 194J mandates TDS at 10% on fees for professional services (and technical services) if the payment exceeds ₹30,000 in a financial year.

Question #3
PFMS stands for:
A. Public Finance and Monetary System
B. Public Financial Management System
C. Public Fund Monitoring System
D. Private Financial Management Scheme

Correct Answer: Option B


Explanation:
PFMS is the Public Financial Management System administered by the Department of Expenditure, Ministry of Finance, Government of India.