Which of the following is not a fundamental accounting assumption under Indian Accounting Standards? MCQ with Answer and Explanation

Which of the following is not a fundamental accounting assumption under Indian Accounting Standards?
A. Materiality
B. Accrual
C. Consistency
D. Going Concern
Answer: Option A
Solution (By JKSSB Mock Tests)
Materiality is a modifying principle, not a fundamental accounting assumption. The three fundamental accounting assumptions as per AS 1 are Going Concern, Consistency, and Accrual.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Cost of Goods Sold' in a manufacturing company includes:
A. Only direct material
B. Prime cost
C. Selling expenses
D. Total manufacturing cost adjusted for WIP

Correct Answer: Option D


Explanation:
COGS for manufacturer = Opening finished goods + Cost of production - Closing finished goods. Cost of production = total manufacturing cost + opening WIP - closing WIP.

Question #2
The 'Direction of Testing' for existence of assets is from:
A. Accounting records to physical asset
B. No testing
C. Both ways
D. Physical asset to accounting records

Correct Answer: Option A


Explanation:
To verify existence, select from records and verify physically. Completeness is opposite.

Question #3
The 'Securities Transaction Tax' (STT) is levied on:
A. Property transactions
B. Purchase and sale of shares and derivatives on recognized stock exchanges
C. Bank deposits
D. Commodity transactions

Correct Answer: Option B


Explanation:
STT is a direct tax on transactions in securities listed on recognized stock exchanges.