A 'Bank Overdraft' is shown in Balance Sheet as: MCQ with Answer and Explanation

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A 'Bank Overdraft' is shown in Balance Sheet as:

A. Current asset

B. Contra asset

C. Current liability

D. Long-term liability

Answer: Option C

Solution (By JKSSB Mock Tests)

Bank overdraft is repayable on demand, hence a current liability.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1

The 'Lease Liability' under Ind AS 116 is measured at:

A. Undiscounted sum

B. Present value of lease payments not yet paid

C. Cost

D. Fair value

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Correct Answer: Option B

Explanation:
Lease liability is initially measured at present value of future lease payments.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The 'Investment in Associates' (Ind AS 28) is accounted for using:

A. Consolidation

B. Equity method

C. Fair value through profit or loss

D. Cost method

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Correct Answer: Option B

Explanation:
Equity method is applied for associates, except when held for sale.

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Question #3

Budgetary control is a system of controlling costs that includes:

A. Fixing of selling prices

B. Continuous comparison of actuals with budgets

C. Preparation of budgets only

D. Hiring of staff

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Correct Answer: Option B

Explanation:
Budgetary control involves preparing budgets and continuously comparing actual performance against the budget to take corrective action.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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