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

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The term 'Window Dressing' in accounting refers to:

A. Manipulation of financial statements to present a better picture

B. Auditing process

C. Decorating the office

D. Maintaining proper records

Answer: Option A

Solution (By JKSSB Mock Tests)

Window dressing is the act of manipulating financial data to make the company's financial position appear more favorable than it actually is.

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

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Question #1

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S1: The Trading Account shows the gross profit or loss. S2: The Profit and Loss Account shows the net profit or loss. Which statement(s) is/are correct?

A. Both S1 and S2

B. S2 only

C. S1 only

D. Neither S1 nor S2

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Correct Answer: Option A

Explanation:
The Trading Account calculates Gross Profit/Loss by matching direct expenses with net sales. The Profit and Loss Account calculates Net Profit/Loss by matching all indirect expenses and incomes with the Gross Profit. Both are correct.

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

Question #2

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Social Accounting in India is mostly used by:

A. Public sector enterprises

B. Small traders

C. Manufacturing companies

D. Households

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Correct Answer: Option A

Explanation:
Public sector enterprises and large corporations often prepare social accounting statements to show their contribution to social objectives.

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