The term 'Window Dressing' in accounting means: MCQ with Answer and Explanation

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The term 'Window Dressing' in accounting means:

A. Manipulating accounts to present a better picture

B. Preparing accounts as per law

C. Using standard accounting software

D. Making accounts transparent

Answer: Option A

Solution (By JKSSB Mock Tests)

Window dressing refers to presenting financial statements in a way that gives a more favorable impression than reality.

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

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Question #1

Discount Allowed is considered a:

A. Direct Expense

B. Selling & Distribution Expense

C. Factory Expense

D. Financial Expense

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Correct Answer: Option B

Explanation:
Discount allowed is given to encourage prompt payment by customers, treated as a selling/administrative expense in the P&L Account.

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Question #2

Interest on drawings is shown in the Profit & Loss Account on the:

A. Credit side

B. It is not shown in P&L A/c

C. Debit side

D. Both sides

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Correct Answer: Option A

Explanation:
Interest on drawings is an income for the business, hence it is credited to the Profit and Loss Account.

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Question #3

Which tax reform introduced the concept of 'One Nation, One Tax'?

A. Goods and Services Tax (GST)

B. Value Added Tax (VAT)

C. Fringe Benefit Tax

D. Wealth Tax Abolition

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Correct Answer: Option A

Explanation:
GST integrated multiple indirect taxes across India into a single unified tax structure.

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

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