A: A Real Account is never closed at the end of the accounting year. R: Real accounts represent assets and properties of the business. Choose the correct option. MCQ with Answer and Explanation

A: A Real Account is never closed at the end of the accounting year. R: Real accounts represent assets and properties of the business. Choose the correct option.
A. A is false but R is true
B. Both A and R are true and R is the correct explanation of A
C. Both A and R are true but R is NOT the correct explanation of A
D. A is true but R is false
Answer: Option B
Solution (By JKSSB Mock Tests)
Real accounts represent assets, which carry forward their balances to the next year because they represent ongoing resources of the business. R correctly explains why they are permanent and never closed.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
Under the Income Tax Act, the deduction under Section 80C has a maximum limit of ₹1,50,000. Which of the following is NOT eligible for deduction under Section 80C?
A. Equity Linked Savings Scheme (ELSS) Mutual Funds
B. Public Provident Fund (PPF)
C. Life Insurance Premium
D. National Pension System (NPS) Tier-I

Correct Answer: Option D


Explanation:
Contributions to NPS Tier-I are eligible for deduction under Section 80CCD(1) (within the 80C limit) and an additional ₹50,000 under 80CCD(1B). However, the question asks what is not eligible *under 80C specifically*. Actually, NPS Tier 1 is under 80CCD. Let me rephrase to be precise.

Question #2
The 'Roll-forward Procedures' in audit are performed to:
A. Replace interim testing
B. Update audit findings from an interim date to the period end
C. Postpone audit
D. Start audit early

Correct Answer: Option B


Explanation:
Roll-forward extends the conclusions from interim date to year-end.

Question #3
Bank charges debited by the bank will be ________ when starting with an overdraft balance as per Pass Book.
A. Deducted
B. Ignored
C. Multiplied
D. Added

Correct Answer: Option A


Explanation:
Bank charges increase the overdraft in the pass book. To arrive at the cash book overdraft (which is lower since it missed the charge), it must be deducted.