Explanation

• The process of costing is relevant to cement industry.
• Process costing is used where products are produced continuously in large quantities and each unit is identical.
• It is commonly applied in industries like cement, chemicals, oil refining, and textiles.

Last verified on 21-07-2026

Explanation

• The audit of a bank is generally conducted through routine checking.
• Routine checking involves regular examination and verification of banking transactions and records.
• It helps ensure accuracy, reliability, and detection of errors.

Last verified on 21-97-2026

Explanation

• Stratified audit sample means selecting items from each group (stratum) of the population.
• In stratified sampling, the population is divided into different groups based on common characteristics.
• Samples are then selected from each group to ensure proper representation.

Additional information:

• Random sampling: Items are selected randomly from the whole population.

Last verified on 21-07-2026

Explanation

• Non-cash items are excluded from the cash budget.
• A cash budget records only cash receipts and cash payments.
• It helps estimate the cash available during a specific period.
• Non-cash expenses do not involve actual cash movement, so they are excluded.

Last verified on 21-07-2026

Explanation

• The Quick Ratio (Acid-Test Ratio) measures a company's ability to pay its short-term liabilities using its most liquid assets.
• It excludes inventory and prepaid expenses because they cannot be converted into cash quickly.
• A higher quick ratio indicates better short-term financial strength.

Last verified on 21-07-2026