The primary objective of management accounting is to:
A. Provide information to external stakeholders
B. Calculate tax liability
C. Assist management in planning and decision-making
D. Ensure compliance with accounting standards
Answer: Option C
Solution (By JKSSB Mock Tests)
Management accounting focuses on providing internal management with the financial and non-financial information needed for planning, controlling, and decision-making.
S1: Ind AS 115 uses a five-step model for revenue recognition. S2: The five steps include identifying the contract, performance obligations, transaction price, allocating price, and recognizing revenue. Which statement(s) is/are correct?
Explanation:
Ind AS 115 prescribes a five-step model for revenue recognition. The steps are exactly as listed: identify contract, identify performance obligations, determine transaction price, allocate price, and recognize revenue when obligations are satisfied. Both are correct.
Explanation:
Direct taxes, like Income Tax and Wealth Tax, are levied directly on the income and wealth of individuals or entities. The burden of direct taxes cannot be shifted to someone else. S1 is correct, S2 is incorrect.
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