Verification of assets primarily ensures: MCQ with Answer and Explanation

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Verification of assets primarily ensures:

A. Arithmetical accuracy

B. Detection of minor cash thefts

C. Timely payment to creditors

D. Existence, ownership, and correct valuation

Answer: Option D

Solution (By JKSSB Mock Tests)

Verification goes beyond vouching; it involves physically confirming the existence, legal ownership, possession, and proper valuation of assets.

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

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The 'Budget' is presented in Parliament by:

A. President

B. Prime Minister

C. Speaker

D. Finance Minister

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Correct Answer: Option D

Explanation:
The Union Budget is presented by the Finance Minister.

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Question #2

The 'Expected Credit Loss' for trade receivables:

A. No impairment

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C. Can use simplified approach (lifetime ECL) if there is no significant financing component

D. Only when default occurs

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Correct Answer: Option C

Explanation:
Ind AS 109 allows the simplified approach for trade receivables and contract assets.

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Question #3

Under Indian tax law, 'Assessment Year' means:

A. Year in which income is earned

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Correct Answer: Option D

Explanation:
Assessment year is the year in which income of the previous year is assessed and taxed.

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

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