371. Stock in trade is valued _________.
A. at cost price.
B. at market price.
C. at cost price or market price whichever is less.
D. at cost price less depreciation.
372. Goods sent on an approval basis have been recorded as credit sales. This is an example of:
A. Error of principle.
B. Error of commission.
C. Error of omission.
D. Error of duplication.
373. Preliminary expenses are the best example for _________.
A. fictitious asset.
B. intangible asset.
C. wasting asset.
D. floating asset.
374. The profits that can be legally distributed to shareholders are called _________.
A. Revenue profits.
B. Capital profits.
C. Divisible profits.
D. Profits prior to incorporation.
375. Errors of principle are due to ___________.
A. Wrong entry of the transaction in the books of original entry.
B. Wrong allocation of expenditure between capital and revenue.
C. Mistake in the payment of a commission.
D. Mistake in the payment of salary.
376. Periodical audit is also called as _________.
A. Final audit.
B. Interim audit.
C. Balance sheet audit.
D. Income statement audit.
377. An audit programme is ___________.
A. a description, memorandum or an outline of the work to be done in a business.
B. the rules and regulations prescribed for writing up the books of accounts.
C. to gain knowledge of clients accounting system.
D. a trial work.
378. The auditor of a government company shall be appointed by ________.
A. the government company itself.
B. the central government.
C. the share holders.
D. the debenture holders.
379. An auditor of a company will be held liable under the companies act _________.
A. if the destroys, mutilates, secrets etc., any documents, vouchers, books etc., with a view to deceive any
B. if he has examined all the documents of the company.
C. if he has not contravened the provisions of sec.227.
D. if he is an auditor of the company.
380. The main object of the audit of the cash book may be ________.
A. to verify the assets and liabilities.
B. to know that all receipts and payments have been properly recorded.
C. to check the internal control system in business.
D. to check the bank balance.
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