A Cash Book with Cash, Bank, and Discount columns is called a: MCQ with Answer and Explanation

A Cash Book with Cash, Bank, and Discount columns is called a:
A. Petty Cash Book
B. Three-column Cash Book
C. Simple Cash Book
D. Two-column Cash Book
Answer: Option B
Solution (By JKSSB Mock Tests)
A three-column cash book tracks cash transactions, bank transactions, and discounts allowed/received simultaneously.

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Practice More Accountancy and Book Keeping Questions

Question #1
If the current ratio is 2:1, which of the following transactions will increase the ratio?
A. Sold goods on credit
B. Paid cash to creditors
C. Purchased goods on credit
D. Issued debentures

Correct Answer: Option A


Explanation:
Selling goods on credit increases current assets (debtors) without affecting current liabilities, thereby increasing a current ratio that is already greater than 1.

Question #2
The 'Digital Rupee' (e₹) is issued by:
A. Reserve Bank of India
B. Commercial banks
C. Government of India
D. NPCI

Correct Answer: Option A


Explanation:
CBDC (Central Bank Digital Currency) is issued by the RBI.

Question #3
S1: Marginal costing distinguishes between fixed and variable costs. S2: Absorption costing distinguishes between fixed and variable costs. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. Both S1 and S2
C. S1 only
D. S2 only

Correct Answer: Option C


Explanation:
Marginal costing strictly separates costs into fixed and variable components. Absorption costing (traditional costing) charges all manufacturing costs (both fixed and variable) to the product, without this strict separation for decision making. S1 is correct, S2 is incorrect.