The objective of 'Financial Statements' is to provide information about: MCQ with Answer and Explanation

Question
The objective of 'Financial Statements' is to provide information about:
A. Only liabilities
B. Only profit
C. Financial position, performance, and cash flows
D. Only assets
Answer: Option C
Solution (By JKSSB Mock Tests)
Financial statements present the financial position, performance, and cash flows of an entity.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
S1: Under GST, the 'E-invoice' system generates an Invoice Reference Number (IRN) and a QR code. S2: The IRN is generated by the taxpayer's own accounting software without connecting to the government portal. Which statement(s) is/are correct?
A. Both S1 and S2
B. Neither S1 nor S2
C. S2 only
D. S1 only
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Correct Answer: Option D

Explanation:
S1 is correct; e-invoicing generates an IRN and QR code. S2 is incorrect because the IRN is generated by the Invoice Registration Portal (IRP) of the government, not locally by the taxpayer's software without validation.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Who typically authorizes an accounting voucher before it is recorded?
A. An Authorized Signatory or Manager
B. The Auditor
C. The Cashier
D. The Junior Accountant
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Correct Answer: Option A

Explanation:
For internal control, vouchers must be signed and authorized by a designated manager or official before posting.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Standard costing involves:
A. Calculating only variable costs
B. Setting predetermined costs and comparing with actual costs
C. Budgeting only
D. Recording historical costs
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Correct Answer: Option B

Explanation:
Standard costing is a technique where standard costs are established, and variances from actual costs are analyzed.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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