Under the Companies Act 2013, which of the following companies are mandatorily required to constitute a CSR Committee? MCQ with Answer and Explanation

Question
Under the Companies Act 2013, which of the following companies are mandatorily required to constitute a CSR Committee?
A. All listed companies
B. Only government companies
C. Companies with more than 500 employees
D. Companies meeting any of the specified net worth, turnover, or net profit criteria during the immediately preceding financial year
Answer: Option D
Solution (By JKSSB Mock Tests)
Section 135 mandates a CSR Committee for companies that meet specific thresholds of net worth (₹500 Cr+), turnover (₹1000 Cr+), or net profit (₹5 Cr+) in the preceding financial year.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Blockchain technology in accounting is primarily used for:
A. Manual ledger posting
B. Immutable and transparent record-keeping
C. Calculating depreciation
D. Preparing tax returns
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Correct Answer: Option B

Explanation:
Blockchain provides a distributed ledger that is secure, transparent, and tamper-proof.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Under Ind AS 2, which of the following costs are excluded from the cost of inventory and recognized as expenses in the period they are incurred?
A. Fixed production overheads allocated based on normal capacity
B. Costs of conversion
C. Abnormal amounts of wasted materials, labor, or other production costs
D. Design costs incurred before the production stage for a specific customer order
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Correct Answer: Option C

Explanation:
Ind AS 2 explicitly excludes abnormal waste, storage costs (unless necessary in the production process), administrative overheads not contributing to bringing inventories to their present location/condition, and selling costs from inventory cost.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A firm's current ratio is 1.5:1. It wants to maintain a current ratio of 2:1 by paying off some current liabilities. Which of the following will happen?
A. Working capital will remain unchanged
B. Working capital will decrease
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D. Working capital will increase
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Correct Answer: Option A

Explanation:
Paying current liabilities reduces both current assets (cash) and current liabilities equally, leaving working capital (CA - CL) unchanged, though ratio improves.
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