The 'Going Concern Concept' implies: MCQ with Answer and Explanation

Question
The 'Going Concern Concept' implies:
A. The business will continue for the foreseeable future
B. The business is bankrupt
C. The business will be closed within a year
D. The business will merge with another
Answer: Option A
Solution (By JKSSB Mock Tests)
It assumes the entity will continue operations and not liquidate.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
The petty cash book is balanced:
A. Daily
B. At the end of the month
C. When it is replenished
D. At the end of the year
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Correct Answer: Option C

Explanation:
Under imprest system, petty cash book is closed when cash is replenished, not periodically.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
What is an 'amended cash book' in the context of BRS?
A. A cash book prepared by the bank
B. A cash book updated for bank errors
C. A cash book updated with missing transactions and rectifications before preparing BRS
D. A cash book used only for petty expenses
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Correct Answer: Option C

Explanation:
An amended cash book adjusts for items like direct deposits, bank charges, and clerical errors in the cash book before reconciling timing differences.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Carriage outward is shown in:
A. Manufacturing A/c
B. Profit & Loss A/c
C. Trading A/c
D. Balance Sheet
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Correct Answer: Option B

Explanation:
Carriage outward is a selling and distribution expense, so it appears in Profit & Loss Account.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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