The use of artificial intelligence (AI) in accounting is currently transforming: MCQ with Answer and Explanation

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The use of artificial intelligence (AI) in accounting is currently transforming:

A. The basic accounting equation

B. The abolition of all taxes

C. Automated invoice processing and anomaly detection

D. The legal definition of a company

Answer: Option C

Solution (By JKSSB Mock Tests)

AI automates routine tasks like data entry and enhances fraud detection by recognizing patterns (anomalies) faster than human auditors.

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

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Question #1

A 'Cost Audit' is mandated for certain companies under:

A. Income Tax Act

B. SEBI regulations

C. GST Act

D. Companies Act, 2013

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Correct Answer: Option D

Explanation:
Cost audit is required for specified companies as per Section 148 of Companies Act, 2013.

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

Question #2

The 'Advance Tax' payment schedule for a non-corporate assessee is:

A. 15th March only

B. 15th September, 15th December, 15th March

C. 31st March only

D. 15th June, 15th September, 15th December, 15th March

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Correct Answer: Option D

Explanation:
For non-corporate taxpayers, advance tax is due in four instalments: 15th June (15%), Sept (45%), Dec (75%), March (100%) of tax due.

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Question #3

A: The Accounting Equation is Assets = Liabilities + Equity. R: This equation is based on the Dual Aspect Concept. Choose the correct option.

A. A is false but R is true

B. Both A and R are true but R is NOT the correct explanation of A

C. Both A and R are true and R is the correct explanation of A

D. A is true but R is false

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Correct Answer: Option C

Explanation:
The accounting equation mathematically represents the balance sheet. It is directly derived from the Dual Aspect Concept, which states that every transaction has two equal and opposite effects. R correctly explains the basis of A.

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

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