Which of the following is a 'Contingent Asset'? MCQ with Answer and Explanation

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Which of the following is a 'Contingent Asset'?

A. A provision

B. A current asset

C. An asset recognized in balance sheet

D. A potential asset that arises from past events and whose existence will be confirmed by future events not wholly under the entity's control

Answer: Option D

Solution (By JKSSB Mock Tests)

Contingent asset is not recognized but disclosed if probable.

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

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Question #1

Which of the following is a 'Revenue Reserve'?

A. Debenture redemption reserve

B. Investment allowance reserve

C. General reserve

D. Capital redemption reserve

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Correct Answer: Option C

Explanation:
General reserve is created out of revenue profits; others are specific reserves.

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

Question #2

Who typically authorizes an accounting voucher before it is recorded?

A. The Cashier

B. The Junior Accountant

C. The Auditor

D. An Authorized Signatory or Manager

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Correct Answer: Option D

Explanation:
For internal control, vouchers must be signed and authorized by a designated manager or official before posting.

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Question #3

The 'Updated Return' under Income Tax (Section 139(8A)) can be filed within:

A. 1 year from end of relevant assessment year

B. 2 years from end of relevant assessment year

C. No time limit

D. 3 years

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Correct Answer: Option B

Explanation:
Updated return can be filed within 24 months from the end of the relevant assessment year, subject to conditions.

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

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