The 'Qualifying Asset' under Ind AS 23 includes: MCQ with Answer and Explanation

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The 'Qualifying Asset' under Ind AS 23 includes:

A. Inventories routinely manufactured in large quantities

B. Assets that take a substantial period of time to get ready for their intended use or sale

C. All intangible assets

D. All fixed assets

Answer: Option B

Solution (By JKSSB Mock Tests)

Qualifying asset requires substantial time to get ready.

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

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Question #1

An auditor's primary responsibility is to:

A. Express an opinion on the financial statements

B. Prepare financial statements

C. Detect all frauds

D. Compute tax liability

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Correct Answer: Option A

Explanation:
Auditor examines the financial statements and provides an opinion whether they give a true and fair view.

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

Question #2

Which of the following is a limitation of a financial audit?

A. It provides absolute assurance

B. It is completely objective with no use of judgment

C. It detects all minor errors

D. It relies on test checking and sampling

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Correct Answer: Option D

Explanation:
Audits provide reasonable (not absolute) assurance because they heavily rely on sampling and test checking, making it impossible to check every transaction.

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

Question #3

Which of the following is a direct tax in India?

A. Excise duty on liquor

B. Corporate tax

C. Goods and Services Tax

D. Customs duty

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Correct Answer: Option B

Explanation:
Corporate tax is levied directly on company profits, thus a direct tax.

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

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