Under the Companies Act 2013, the 'Independent Directors' must hold a special training as per Section 149. Who is exempted from this training requirement? MCQ with Answer and Explanation

Under the Companies Act 2013, the 'Independent Directors' must hold a special training as per Section 149. Who is exempted from this training requirement?
A. A person who has been a director for more than 10 years
B. No one is exempted
C. A person who has already undergone the training or is a whole-time director in a listed company
D. A qualified Chartered Accountant or Company Secretary
Answer: Option C
Solution (By JKSSB Mock Tests)
The Companies Act exempts individuals who have already undergone the prescribed independent director training, or those who are already serving as whole-time directors in listed companies, from the mandatory training requirement.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Gift Tax' in India:
A. Is a separate Act
B. Is part of GST
C. Does not exist
D. Has been abolished and gifts are now taxed under Income Tax Act as income from other sources (above ₹50,000)

Correct Answer: Option D


Explanation:
Gift tax Act was abolished; gifts are now taxed in the hands of recipient under Section 56(2)(x) of Income Tax Act if exceeding ₹50,000.

Question #2
A credit sale of ₹10,000 to Ram was posted as ₹1,000. This is an error of:
A. Commission
B. Principle
C. Compensation
D. Omission

Correct Answer: Option A


Explanation:
Error of commission occurs when a transaction is incorrectly recorded, e.g., wrong amount, wrong posting.

Question #3
Which accounting principle justifies treating a calculator as an expense rather than a fixed asset?
A. Consistency
B. Materiality
C. Dual Aspect
D. Going Concern

Correct Answer: Option B


Explanation:
The Materiality principle states that trivial costs (like a calculator) should be expensed immediately rather than capitalized and depreciated, due to their immaterial impact.