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

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The 'Stratified Sampling' in audit:

A. Divides the population into homogeneous subgroups and selects samples from each

B. Selects items randomly

C. Ignores low-value items

D. Selects all high-value items

Answer: Option A

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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Question #1

Identify the non-cash item from the following:

A. Wages paid

B. Depreciation

C. Dividend paid

D. Purchase of machinery

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Correct Answer: Option B

Explanation:
Depreciation is the systematic allocation of asset cost; it does not involve any actual outflow of cash.

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Question #2

Which of the following is an example of a personal account?

A. Salary Account

B. Ramesh's Account

C. Building Account

D. Capital Account

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Correct Answer: Option B

Explanation:
Ramesh's Account represents a specific person, making it a personal account. The rule is 'Debit the receiver, credit the giver'.

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Question #3

S1: The sacrificing ratio is always in the old profit-sharing ratio. S2: The gaining ratio is always in the new profit-sharing ratio. Which statement(s) is/are correct?

A. S2 only

B. S1 only

C. Neither S1 nor S2

D. Both S1 and S2

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Correct Answer: Option C

Explanation:
The sacrificing ratio is calculated as Old Ratio - New Ratio. The gaining ratio is calculated as New Ratio - Old Ratio. They are not necessarily the same as the old or new ratios unless specifically stated. Both are incorrect.

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

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