The 'Stratified Sampling' in audit: MCQ with Answer and Explanation

Question
The 'Stratified Sampling' in audit:
A. Selects items randomly
B. Ignores low-value items
C. Selects all high-value items
D. Divides the population into homogeneous subgroups and selects samples from each
Answer: Option D
Solution (By JKSSB Mock Tests)
Stratification improves audit efficiency by grouping items with similar characteristics.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
A partner who does not actively participate in the business but is liable to third parties is called:
A. Nominal partner
B. Secret partner
C. Partner by estoppel
D. Sleeping partner
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Correct Answer: Option D

Explanation:
Sleeping or dormant partner contributes capital but does not take part in management; still has unlimited liability.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Converting Single Entry to Double Entry involves preparing a 'Total Creditors Account' to find out:
A. Closing Capital
B. Credit Purchases
C. Credit Sales
D. Cash Purchases
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Correct Answer: Option B

Explanation:
Total Creditors Account reconstructs the relationship with suppliers; the balancing figure usually represents the missing credit purchases.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Interim Dividend' is declared by:
A. Board of Directors
B. Auditors
C. Government
D. Shareholders
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Correct Answer: Option A

Explanation:
Interim dividend can be declared by the Board of Directors between annual general meetings.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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