The 'Traditional Approach' classifies accounts into: MCQ with Answer and Explanation

The 'Traditional Approach' classifies accounts into:
A. Assets, liabilities, equity
B. Real, personal, nominal
C. Income, expenses, assets
D. Current and non-current
Answer: Option B
Solution (By JKSSB Mock Tests)
Under traditional British approach, accounts are classified as personal, real, and nominal.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Earnings Per Share' (Ind AS 33) requires disclosure of:
A. Basic and diluted EPS
B. Cash EPS
C. Diluted EPS only
D. Basic EPS only

Correct Answer: Option A


Explanation:
Ind AS 33 mandates both basic and diluted EPS for entities whose shares are publicly traded.

Question #2
Which of the following is a 'Money Bill' in India?
A. Bill for amendment of Companies Act
B. Finance Bill dealing with taxes
C. Bill on education
D. Bill on labor reforms

Correct Answer: Option B


Explanation:
Finance Bill is a Money Bill as it deals with taxation and government expenditure.

Question #3
The 'Special Economic Zone' (SEZ) supplies are treated as:
A. Zero-rated supply
B. Inter-state supply
C. Exempt supply
D. Intra-state supply

Correct Answer: Option A


Explanation:
Supply to SEZ is zero-rated, allowing input tax credit refund.