A Cash Book serves the purpose of: MCQ with Answer and Explanation

Question
A Cash Book serves the purpose of:
A. A Journal only
B. Both Journal and Ledger
C. A Trial Balance
D. A Ledger only
Answer: Option B
Solution (By JKSSB Mock Tests)
The cash book acts as a journal because transactions are recorded chronologically, and as a ledger because it contains the cash account balance.
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 'Principal vs Agent' consideration under Ind AS 115 determines:
A. The tax rate
B. Timing of revenue
C. Whether revenue is recognised gross or net
D. Discounting
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Correct Answer: Option C

Explanation:
Principal reports revenue gross; agent reports only commission/fee.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Target Cost is calculated as:
A. Current Cost - Desired Profit
B. Prime Cost + Factory Overheads
C. Expected Selling Price - Desired Profit Margin
D. Variable Cost + Fixed Cost
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Correct Answer: Option C

Explanation:
Target costing starts with market price, subtracts the required profit, to find the maximum allowable cost (Target Cost).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'GST' on sale of used cars by a registered person is:
A. Nil
B. Exempt
C. 5% on margin
D. Taxable at 18% on margin (if no ITC taken) or on value
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Correct Answer: Option D

Explanation:
GST on sale of used vehicles by registered persons is 18% on margin (difference between purchase and selling price) if no ITC taken; otherwise on value.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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