The 'Correction of an Error' (Ind AS 8) is done: MCQ with Answer and Explanation

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The 'Correction of an Error' (Ind AS 8) is done:

A. Prospectively

B. By charging to current year

C. Retrospectively by restating comparative amounts

D. By creating a provision

Answer: Option C

Solution (By JKSSB Mock Tests)

Material prior period errors are corrected retrospectively.

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

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Question #1

PFMS portal is used for:

A. Company registration

B. e-procurement

C. Tax filing

D. Direct Benefit Transfer (DBT)

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Correct Answer: Option D

Explanation:
PFMS facilitates direct benefit transfers and real-time tracking of government funds.

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

Question #2

The 'Accounting Policy Changes' are applied:

A. Retrospectively, unless impracticable

B. Arbitrarily

C. Prospectively

D. Only with government approval

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Correct Answer: Option A

Explanation:
Ind AS 8 requires retrospective application of changes in accounting policies.

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

Question #3

If a debtor becomes insolvent and only 60 paise in a rupee is recovered from his debt of Rs 5,000, the Bad Debts account is debited by:

A. Rs 8,000

B. Rs 3,000

C. Rs 2,000

D. Rs 5,000

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Correct Answer: Option C

Explanation:
Amount recovered = 60% of 5,000 = Rs 3,000. The irrecoverable amount (Bad Debt) is 40% of 5,000 = Rs 2,000.

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

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