The 'Full Disclosure Principle' requires: MCQ with Answer and Explanation

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The 'Full Disclosure Principle' requires:

A. Disclosure of all material information in financial statements

B. No disclosure

C. Disclosure of only profits

D. Disclosure of only assets

Answer: Option A

Solution (By JKSSB Mock Tests)

Full disclosure means all significant information should be reported in financial statements and notes.

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

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Question #1

Capital loss can be carried forward for:

A. 4 years

B. Indefinitely

C. 16 years

D. 8 years

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Correct Answer: Option D

Explanation:
Capital losses (short-term and long-term) can be carried forward for 8 years.

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. Non-taxable supplies

C. Goods with 0% GST but ITC available

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

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Correct Answer: Option D

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.

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

Question #3

An amount of Rs 5,000 received from Mohan was incorrectly credited to Sohan's account. This is an example of:

A. Error of Commission

B. Error of Principle

C. Error of Omission

D. Compensating Error

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Correct Answer: Option A

Explanation:
Posting to the correct side but the wrong personal account is a clerical mistake classified as an error of commission.

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

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