Which accounting standard deals with the presentation of financial statements? MCQ with Answer and Explanation

Which accounting standard deals with the presentation of financial statements?
A. AS 2
B. AS 1
C. AS 10
D. AS 9
Answer: Option B
Solution (By JKSSB Mock Tests)
AS 1 'Disclosure of Accounting Policies' deals with the classification and presentation of financial statements and the disclosure of accounting policies.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
Amortisation is related to:
A. Current assets
B. Intangible assets
C. Tangible assets
D. Fictitious assets only

Correct Answer: Option B


Explanation:
Amortisation is the systematic write-off of intangible assets like patents, copyrights.

Question #2
The 'Proprietary Ratio' establishes relationship between:
A. Sales and debtors
B. Debt and equity
C. Proprietors' funds and total assets
D. Current assets and current liabilities

Correct Answer: Option C


Explanation:
Proprietary ratio = Shareholders' funds / Total assets, indicating the proportion of assets financed by owners.

Question #3
Which of the following is not an objective of a financial audit?
A. Expressing an opinion on financial statements
B. Detection of fraud
C. Detection of errors
D. Ensuring absolute accuracy of books

Correct Answer: Option D


Explanation:
Audit provides reasonable assurance, not absolute accuracy. The objective is to detect material misstatements due to fraud or error and express an opinion.