The 'Test of Details' includes: MCQ with Answer and Explanation

The 'Test of Details' includes:
A. Vouching, tracing, and inspection of documents
B. Ratio analysis
C. Budget comparison
D. Trend analysis
Answer: Option A
Solution (By JKSSB Mock Tests)
Test of details are specific tests of transactions and balances.

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Practice More Accountancy and Book Keeping Questions

Question #1
GST Council decisions are taken by a majority of not less than:
A. Simple majority
B. Unanimous vote
C. Three-fourths of the weighted votes
D. Two-thirds of the weighted votes

Correct Answer: Option C


Explanation:
Article 279A dictates that every decision of the GST Council must be supported by a minimum of 75% (three-fourths) weighted majority of the members present and voting.

Question #2
Under Ind AS 115, if an entity receives a non-refundable upfront fee and has no further performance obligations, when should the revenue be recognized?
A. Recognized immediately upon receipt of cash
B. Over the expected life of the customer relationship
C. Amortized over the contractual period of the agreement
D. At the point in time when the entity transfers control of the good/service

Correct Answer: Option D


Explanation:
Ind AS 115 states that if an upfront fee relates to a good or service and there are no further performance obligations, revenue is recognized when control of that good or service is transferred.

Question #3
If BRS is prepared starting with a credit balance as per Cash Book (overdraft), interest allowed by the bank will be:
A. Deducted
B. Not treated in BRS
C. Added
D. Treated as an error

Correct Answer: Option A


Explanation:
Interest allowed reduces the actual bank overdraft (Pass book). To make the Cash book overdraft match this lower figure, it must be deducted.