Which of the following qualitative characteristics of accounting information requires that information should not be biased? MCQ with Answer and Explanation

Which of the following qualitative characteristics of accounting information requires that information should not be biased?
A. Comparability
B. Understandability
C. Relevance
D. Reliability
Answer: Option D
Solution (By JKSSB Mock Tests)
Reliability ensures that the accounting information is free from error and bias, faithfully representing what it purports to represent.

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Practice More Accountancy and Book Keeping Questions

Question #1
A 'Bill Receivable Book' records:
A. All bills
B. Bills payable
C. Bills drawn by the business and accepted by debtors
D. Bills accepted by business

Correct Answer: Option C


Explanation:
Bills Receivable Book records all bills of exchange drawn on debtors and accepted by them.

Question #2
In a trial balance, if the total of the debit side is ₹50,000 and the credit side is ₹45,000, the difference is placed in:
A. Capital Account
B. Trading Account
C. Profit & Loss Account
D. Suspense Account

Correct Answer: Option D


Explanation:
When the trial balance does not tally, the difference is temporarily placed in a Suspense Account to allow the preparation of financial statements.

Question #3
Which of the following is a test of audit?
A. Reporting
B. Verification
C. Planning
D. Vouching

Correct Answer: Option D


Explanation:
Vouching is the primary test of audit, involving the examination of documentary evidence to support the transactions recorded in the books of accounts.