Which of the following is NOT a component of financial statements for a sole proprietorship? MCQ with Answer and Explanation

Question

Share Report Error

Which of the following is NOT a component of financial statements for a sole proprietorship?

A. Statement of Changes in Equity

B. Trading Account

C. Profit & Loss Account

D. Balance Sheet

Answer: Option A

Solution (By JKSSB Mock Tests)

Statement of Changes in Equity is typically a required component for corporate entities under Ind AS, not for standard sole proprietorships.

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

Request complete Subject PDF

Discuss this Question (0)

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

Practice More Accountancy and Book Keeping Questions

Question #1

Share Report

Which government initiative relies on PFMS to ensure that farmers receive minimum income support seamlessly?

A. PM KISAN

B. Skill India

C. Smart Cities Mission

D. Make in India

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
PM KISAN uses the Direct Benefit Transfer (DBT) mechanism of the PFMS to transfer funds directly into the bank accounts of farmers.

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

Question #2

Share Report

Zero-Based Budgeting (ZBB) requires managers to:

A. Increase the budget by a flat zero percent

B. Base the new budget on last year's actuals

C. Justify every expense from scratch for every new period

D. Keep all expenses at zero

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
ZBB starts from a 'zero base', requiring a fresh justification for all funding rather than relying on historical data.

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

Question #3

Share Report

Which voucher is used for recording cash sales?

A. Credit voucher

B. Debit voucher

C. Cash voucher

D. Journal voucher

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Cash sales involve receipt of cash, so a cash voucher (receipt voucher) is prepared.

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

Explore All Accountancy and Book Keeping MCQs