The 'FASB' is the accounting standard-setting body of: MCQ with Answer and Explanation

The 'FASB' is the accounting standard-setting body of:
A. India
B. United States
C. United Kingdom
D. Japan
Answer: Option B
Solution (By JKSSB Mock Tests)
Financial Accounting Standards Board (FASB) sets US GAAP.

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Practice More Accountancy and Book Keeping Questions

Question #1
S1: Goods distributed as free samples are debited to the Advertising Account. S2: Goods distributed as charity are debited to the Charities Account. Which statement(s) is/are correct?
A. S2 only
B. Both S1 and S2
C. S1 only
D. Neither S1 nor S2

Correct Answer: Option B


Explanation:
Free samples are treated as a promotional expense (Advertising). Free charity goods are treated as a charitable donation. Both require debiting their respective nominal accounts.

Question #2
What is the rule of Double Entry for Real Accounts?
A. Debit the receiver, Credit the giver
B. Debit all expenses, Credit all incomes
C. Debit the increase, Credit the decrease
D. Debit what comes in, Credit what goes out

Correct Answer: Option D


Explanation:
Real accounts relate to tangible or intangible assets. The golden rule is 'Debit what comes in, Credit what goes out'.

Question #3
The 'Form 26QB' is related to:
A. TDS on purchase of immovable property (Section 194-IA)
B. Advance tax
C. TDS on salary
D. TDS on rent

Correct Answer: Option A


Explanation:
Form 26QB is the challan-cum-statement for TDS on property purchase.