When a firm adopts 'Lean Accounting', it primarily tries to: MCQ with Answer and Explanation

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When a firm adopts 'Lean Accounting', it primarily tries to:

A. Stop issuing balance sheets

B. Under-report profits to save tax

C. Eliminate waste and align accounting processes with lean manufacturing principles

D. Reduce the number of accountants

Answer: Option C

Solution (By JKSSB Mock Tests)

Lean accounting supports lean manufacturing by eliminating complex, non-value-adding accounting transactions and focusing on value stream costing.

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

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Question #1

The 'Interim Financial Report' should include:

A. Only profit and loss

B. Full annual report

C. Condensed set of financial statements and selected explanatory notes

D. Only a condensed balance sheet

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Correct Answer: Option C

Explanation:
As per Ind AS 34, interim report includes condensed statements and notes.

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

Question #2

The 'Audit Programme' is:

A. The final accounts

B. The trial balance

C. The audit report

D. A list of audit procedures to be performed

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Correct Answer: Option D

Explanation:
Audit programme details the steps and procedures for conducting the audit.

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

Question #3

Preliminary expenses are generally classified in the balance sheet under:

A. Intangible Assets

B. Current Assets

C. Fixed Assets

D. Fictitious Assets / Unamortized expenditure

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Correct Answer: Option D

Explanation:
Preliminary expenses are fictitious assets representing past expenditures that haven't been completely written off to the P&L account.

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

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