The 'True and Fair View' is an overriding requirement of: MCQ with Answer and Explanation

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The 'True and Fair View' is an overriding requirement of:

A. Tax returns

B. Financial statements

C. GST returns

D. Management accounts

Answer: Option B

Solution (By JKSSB Mock Tests)

Financial statements must present a true and fair view of the entity's financial position and performance.

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

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Question #1

When a bill is dishonoured, the drawer records:

A. Debit sales, credit bank

B. Debit drawee, credit bank

C. Debit bank, credit drawee

D. No entry

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Correct Answer: Option B

Explanation:
On dishonour, drawee's account is debited (debtor again), and bank is credited as bank returns the bill.

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

Question #2

CSR (Corporate Social Responsibility) is mandatory under the Companies Act 2013 for companies with a net profit of at least:

A. Rs 10 Crores

B. Rs 50 Crores

C. Rs 5 Crores

D. Rs 1 Crore

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Correct Answer: Option C

Explanation:
Section 135 mandates CSR for companies with Net Worth ≥ 500 Cr, Turnover ≥ 1000 Cr, or Net Profit ≥ 5 Cr.

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Question #3

The main purpose of preparing a Trial Balance is:

A. To detect frauds

B. To prepare final accounts

C. To know the financial position

D. To check the arithmetical accuracy of ledger accounts

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Correct Answer: Option D

Explanation:
Trial balance ensures that total debits equal total credits, verifying posting and balancing accuracy.

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

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