The 'Related Party Disclosures' standard is: MCQ with Answer and Explanation

The 'Related Party Disclosures' standard is:
A. AS 19
B. AS 21
C. AS 17
D. AS 18
Answer: Option D
Solution (By JKSSB Mock Tests)
AS 18 requires disclosure of transactions with related parties.

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Practice More Accountancy and Book Keeping Questions

Question #1
Assertion (A): A Bank Reconciliation Statement is a part of the books of accounts. Reason (R): It is prepared to find out the correct bank balance. Choose the correct option:
A. A is true but R is false.
B. A is false but R is true.
C. Both A and R are true and R is the correct explanation of A.
D. Both A and R are true but R is not the correct explanation of A.

Correct Answer: Option B


Explanation:
BRS is not a part of books of accounts; it's a memorandum statement. R is true.

Question #2
Which of the following is a non-cash item in the Profit & Loss Account?
A. Depreciation
B. Commission paid
C. Salaries paid
D. Rent paid

Correct Answer: Option A


Explanation:
Depreciation is a non-cash expense, as no cash outflow occurs.

Question #3
S1: ABC analysis is a technique of inventory control. S2: In ABC analysis, 'A' items represent high value and low quantity. Which statement(s) is/are correct?
A. S1 only
B. Both S1 and S2
C. Neither S1 nor S2
D. S2 only

Correct Answer: Option B


Explanation:
ABC analysis classifies inventory based on usage value. 'A' items are the most valuable, typically representing a small percentage of total quantity but a large percentage of total inventory cost. Both statements are correct.