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
At the time of dissolution of a partnership firm, fictitious assets (like deferred revenue expenditure) are transferred to:
A. Partners' Capital Accounts
B. Realisation Account
C. Cash Account
D. Bank Account

Correct Answer: Option A


Explanation:
Fictitious assets are accumulated losses/expenses and are written off by transferring them to the debit side of Partners' Capital Accounts.

Question #2
Expenditure incurred on overhauling a second-hand machinery purchased recently to put it in working condition is:
A. Deferred Revenue Expenditure
B. Revenue Expenditure
C. Capital Expenditure
D. Loss

Correct Answer: Option C


Explanation:
All costs incurred before a fixed asset is ready for its intended use are capitalized.

Question #3
Under GST, the 'Composition Scheme' is not available to a person who:
A. All of the above
B. Is engaged in the manufacture of ice cream and pan masala
C. Makes inter-state supplies
D. Is engaged in the supply of services

Correct Answer: Option A


Explanation:
The Composition Scheme is barred for suppliers of services (except restaurants), those making inter-state supplies, casual/non-resident taxable persons, and manufacturers of specified goods like ice cream, pan masala, and tobacco. Therefore, all options apply.