When a fixed asset is sold, any profit on sale is credited to: MCQ with Answer and Explanation

Question
When a fixed asset is sold, any profit on sale is credited to:
A. Trading Account
B. Capital Account
C. Profit & Loss Account
D. Balance Sheet
Answer: Option C
Solution (By JKSSB Mock Tests)
Profit on sale of fixed asset is a revenue gain, shown in Profit & Loss Account.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
Input Tax Credit under GST is available for:
A. All goods and services
B. Personal consumption goods
C. Exempted supplies only
D. Goods and services used for business purposes
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Correct Answer: Option D

Explanation:
Input tax credit can be availed only on inputs used for business purposes, subject to conditions under GST law.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
In cost accounting, prime cost is:
A. Administration overheads
B. All manufacturing costs
C. Direct material + Direct labour + Factory overheads
D. Direct material + Direct labour + Direct expenses
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Correct Answer: Option D

Explanation:
Prime cost is the sum of all direct costs: direct material, direct labour, and direct expenses.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
In the context of recent developments, what is the full form of 'Ind-AS'?
A. Indian Accounting Standards
B. International Accounting Standards
C. Indian Audit Standards
D. Internal Accounting System
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Correct Answer: Option A

Explanation:
Ind-AS stands for Indian Accounting Standards, which are the standards converged with IFRS (International Financial Reporting Standards) and notified under the Companies Act.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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