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

Question
A 'Bank Overdraft' is shown in Balance Sheet as:
A. Contra asset
B. Current liability
C. Long-term liability
D. Current asset
Answer: Option B
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
In a single entry system, which accounts are usually maintained?
A. All three types of accounts
B. Only real and nominal accounts
C. Only personal accounts and cash book
D. All personal and real accounts
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Correct Answer: Option C

Explanation:
The single entry system is incomplete; typically, only personal accounts (debtors/creditors) and the cash book are fully maintained.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
A 'Flexible Budget' is also known as:
A. Master budget
B. Fixed budget
C. Cash budget
D. Sliding scale budget
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Correct Answer: Option D

Explanation:
Flexible budget changes with activity levels, hence also called variable or sliding scale budget.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Transfer Pricing' regulations in India are contained in:
A. Companies Act
B. GST Act
C. Sections 92 to 92F of Income Tax Act
D. SEBI Act
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Correct Answer: Option C

Explanation:
Transfer pricing provisions apply to international transactions and specified domestic transactions.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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