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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Question #1

Which of the following is an indirect tax in India?

A. Corporation tax

B. Wealth tax

C. Income tax

D. GST

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Correct Answer: Option D

Explanation:
GST is an indirect tax on supply of goods and services.

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

Question #2

Budgetary control system involves:

A. Comparing actual figures with budgeted figures

B. Setting long-term objectives

C. Only preparing cash budget

D. Fixing selling price

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Correct Answer: Option A

Explanation:
Budgetary control is the establishment of budgets relating to responsibilities of executives to the requirements of a policy and the continuous comparison of actual with budgeted results.

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Question #3

Public Financial Management System (PFMS) helps in:

A. Monitoring government subsidies

B. Ensuring last-mile connectivity in fund transfer

C. Preventing leakages

D. All of the above

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Correct Answer: Option D

Explanation:
PFMS aims to track funds, monitor subsidies, ensure DBT, and reduce leakages in public expenditure.

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

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