The 'External Confirmation' from a bank is an example of: MCQ with Answer and Explanation

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The 'External Confirmation' from a bank is an example of:

A. Analytical procedure

B. Internal evidence

C. External evidence obtained directly by the auditor

D. Oral evidence

Answer: Option C

Solution (By JKSSB Mock Tests)

Direct confirmation from bank is highly reliable.

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

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Question #1

The term 'Revaluation Account' is prepared during:

A. Insolvency of a partner

B. Death of a partner

C. Dissolution of a firm

D. Admission of a new partner

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Correct Answer: Option D

Explanation:
A Revaluation Account is prepared to record the changes in the values of assets and liabilities at the time of admission, retirement, or death of a partner.

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

Question #2

The 'Nil-Rated Supply' under GST means:

A. Zero-rated supplies

B. Goods with 0% GST but ITC available

C. Goods with 0% GST and no ITC on inputs (exempt)

D. Non-taxable supplies

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Correct Answer: Option C

Explanation:
Nil-rated supplies are taxed at 0% but no input tax credit is available. Exempt supplies also fall here. Zero-rated (export) allows ITC.

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Question #3

A specific tax levied for a particular purpose on top of the basic tax rate is known as:

A. Excise

B. Tariff

C. Cess

D. Surcharge

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Correct Answer: Option C

Explanation:
A cess (e.g., Health and Education Cess) is levied for a specific purpose and the revenue must be utilized for that objective only.

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

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