The 'Subsequent Events' in audit refer to: MCQ with Answer and Explanation

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The 'Subsequent Events' in audit refer to:

A. All future events

B. Events after auditor's report

C. Events before the balance sheet date

D. Events occurring between the balance sheet date and date of auditor's report

Answer: Option D

Solution (By JKSSB Mock Tests)

Auditors consider events after the reporting period up to the date of the report.

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

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Question #1

The 'Reverse Charge Mechanism' under GST means:

A. Tax is paid by the recipient of supply

B. Tax is deferred

C. Tax is exempt

D. Tax is paid by the supplier

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Correct Answer: Option A

Explanation:
Under reverse charge, the liability to pay GST shifts from the supplier to the recipient.

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

Question #2

A 'Supporting Voucher' is also known as:

A. Journal voucher

B. Cash voucher

C. Transfer voucher

D. Source document

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Correct Answer: Option D

Explanation:
Source documents like bills, receipts support the transaction.

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Question #3

According to the Garner vs. Murray rule, the deficiency of an insolvent partner must be borne by solvent partners in their:

A. Profit Sharing Ratio

B. Gaining Ratio

C. Equal Ratio

D. Capital Ratio just before dissolution

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Correct Answer: Option D

Explanation:
The landmark ruling states that a capital loss due to insolvency must be borne by solvent partners in proportion to their last agreed capitals.

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

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