The 'Recoverable Amount' is the higher of: MCQ with Answer and Explanation

Question
The 'Recoverable Amount' is the higher of:
A. Market value and book value
B. Fair value less costs to sell and value in use
C. Cost and net realisable value
D. Replacement cost and realisable value
Answer: Option B
Solution (By JKSSB Mock Tests)
Recoverable amount = higher of (fair value less costs of disposal) and (value in use).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
Under PFMS, the centralized system module that facilitates direct payment to beneficiaries is called:
A. SWIFT
B. DBT module
C. GSTN
D. E-Kuber
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Correct Answer: Option B

Explanation:
The Direct Benefit Transfer (DBT) module in PFMS directly routes welfare funds into the authenticated bank accounts of citizens.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
When preparing BRS from Cash Book balance (Dr.), a cheque issued but not yet presented should be:
A. Ignored
B. Adjusted in capital
C. Deducted
D. Added
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Correct Answer: Option C

Explanation:
To reconcile to Pass Book, we deduct unpresented cheques because they have already reduced cash book balance but not passbook.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Audit Documentation' should be sufficient to:
A. Satisfy management
B. Enable an experienced auditor, having no previous connection with the audit, to understand the nature, timing, extent of procedures, results, and conclusions
C. Only remind the auditor
D. Meet legal requirement
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Correct Answer: Option B

Explanation:
As per SA 230, working papers must stand alone.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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