The 'Cut-off' procedures in audit relate to: MCQ with Answer and Explanation

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The 'Cut-off' procedures in audit relate to:

A. Ensuring transactions are recorded in the correct accounting period

B. Selecting sample

C. Stopping audit

D. Setting materiality

Answer: Option A

Solution (By JKSSB Mock Tests)

Cut-off tests ensure revenues and expenses are recognised in the proper period.

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

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Question #1

A 'Voucher' in accounting is:

A. A ledger account

B. A trial balance

C. A document evidencing a transaction

D. A journal entry

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Correct Answer: Option C

Explanation:
A voucher is a written document serving as evidence of a business transaction.

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

Question #2

On dissolution of a firm, the balance in the partners' capital accounts after all adjustments is transferred to:

A. Profit & Loss account

B. Realisation account

C. Cash/Bank account

D. Revaluation account

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Correct Answer: Option C

Explanation:
Finally, the capital account balances are paid off in cash or bank, and accounts are closed.

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

Question #3

Income Tax is governed under which schedule of the Indian Constitution?

A. 7th Schedule (Union List)

B. 7th Schedule (Concurrent List)

C. 8th Schedule

D. 7th Schedule (State List)

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Correct Answer: Option A

Explanation:
Taxes on income other than agricultural income fall under Entry 82 of List I (Union List) in the Seventh Schedule.

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

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