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

Question

Share Report Error

The 'Going Concern Concept' implies:

A. The business will merge with another

B. The business will continue for the foreseeable future

C. The business will be closed within a year

D. The business is bankrupt

Answer: Option B

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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Question #1

The primary objective of cost accounting is:

A. To prepare financial accounts

B. To ascertain selling price

C. To ascertain cost and control cost

D. To calculate tax

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Correct Answer: Option C

Explanation:
Cost accounting focuses on recording, classifying, and controlling costs to aid management decisions.

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

Question #2

The 'Earnings Per Share' (Ind AS 33) requires disclosure of:

A. Diluted EPS only

B. Basic and diluted EPS

C. Basic EPS only

D. Cash EPS

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Correct Answer: Option B

Explanation:
Ind AS 33 mandates both basic and diluted EPS for entities whose shares are publicly traded.

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

Question #3

The 'Expected Error' in audit sampling is:

A. Error in the sample only

B. The error the auditor expects to find in the population

C. Actual error after testing

D. The maximum acceptable error

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Correct Answer: Option B

Explanation:
Expected error is estimated before testing; it affects sample size.

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

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