When analyzing financial statements, the 'Window Dressing' practice refers to: MCQ with Answer and Explanation

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When analyzing financial statements, the 'Window Dressing' practice refers to:

A. Repairing the office building

B. Writing off bad debts

C. Manipulating accounts to show a better financial position than reality

D. Displaying financial results transparently

Answer: Option C

Solution (By JKSSB Mock Tests)

Window dressing involves accounting tricks (like delaying expense recording) to make financial statements look stronger to investors.

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

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Question #1

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At the time of dissolution of a partnership firm, fictitious assets (like deferred revenue expenditure) are transferred to:

A. Realisation Account

B. Partners' Capital Accounts

C. Cash Account

D. Bank Account

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Correct Answer: Option B

Explanation:
Fictitious assets are accumulated losses/expenses and are written off by transferring them to the debit side of Partners' Capital Accounts.

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

Question #2

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The 'Tax Collected at Source' (TCS) applies to:

A. All payments

B. Certain specified transactions like sale of scrap, motor vehicles above ₹10 lakh, etc.

C. Salary payments

D. Dividends

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Correct Answer: Option B

Explanation:
TCS is collected by seller from buyer on specified goods.

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Question #3

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The 'FASB' is the accounting standard-setting body of:

A. United Kingdom

B. Japan

C. India

D. United States

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Correct Answer: Option D

Explanation:
Financial Accounting Standards Board (FASB) sets US GAAP.

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

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