Questions - Other than audit and direct taxes team

What type of account is "Accounts Receivable"?

• Asset
• Liability
• Equity
• Revenue

When a company pays its monthly rent expense, which accounts are affected?

• Cash and Rent Expense
• Rent Expense and Accounts Payable
• Rent Expense and Prepaid Rent
• Cash and Accounts Receivable

If a company records a $1,000 sale of goods on credit, what journal entry is made?

• Debit Accounts Receivable, Credit Revenue
• Debit Cash, Credit Revenue
• Debit Revenue, Credit Accounts Payable
• Debit Revenue, Credit Cash

When the auditor issues a "qualified opinion," it means that:

• The financial statements are materially misstated.
• The financial statements present a true and fair view without any issues.
• The auditor disagrees with management's accounting policies.
• The auditor has limitations in obtaining audit evidence.

Which sampling method should be used when the auditor wants to ensure representation from each subgroup of the entire population?

• Block Sampling
• Random Sampling
• Stratified Sampling
• Judgment Sampling

When assessing internal controls, which of the following is a primary consideration for the auditor?

• Efficiency of the controls
• Effectiveness of the controls
• Complexity of the controls
• Cost of implementing the controls

According to IGAAP, which accounting standard provides guidance on the accounting treatment of research and development costs?

• AS 26: Intangible Assets
• AS 20: Earnings Per Share
• AS 10: Property, Plant and Equipment
• AS 7: Construction Contracts

Which entities in India are required to follow Indian Accounting Standards (Ind AS) as per the Companies Act 2013?

• All companies, regardless of their size or ownership.
• Only companies listed on stock exchanges.
• Only companies with a net worth of INR 250 crore or more.
• Only public sector undertakings.

What is the primary objective of AS 2 - Valuation of Inventories?

• To determine the fair value of all inventories.
• To prescribe the accounting treatment for inventories.
• To establish rules for recognizing revenue from the sale of inventories.
• To specify the methods of depreciation for inventories.

Which financial statement is prepared as per AS 1?

• Statement of Changes in Equity
• Statement of Cash Flows
• Statement of Profit and Loss
• Balance Sheet