Which of the following is an 'Accounting Estimate'? MCQ with Answer and Explanation

Question
Which of the following is an 'Accounting Estimate'?
A. Inventory valuation method
B. Revenue recognition policy
C. Depreciation method
D. Useful life of an asset
Answer: Option D
Solution (By JKSSB Mock Tests)
Useful life is an estimate; depreciation method is an accounting policy.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The main difference between cash basis and accrual basis is:
A. Timing of recognition of revenues and expenses
B. Recording of transactions
C. Trial balance preparation
D. Use of vouchers
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Correct Answer: Option A

Explanation:
Cash basis recognises on cash flow; accrual on earning/incurring.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Public Account' of India includes:
A. Grants from foreign governments
B. Borrowings
C. Provident fund, small savings, etc.
D. Tax revenues
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Correct Answer: Option C

Explanation:
Public Account holds money received for specific purposes like provident fund, small savings, etc., not belonging to government.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Financial Statements' of a company must comply with:
A. GST Act
B. Partnership Act
C. Income Tax Act
D. Companies Act and Accounting Standards
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Correct Answer: Option D

Explanation:
Companies Act 2013 and Accounting Standards govern financial statements.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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