A 'Cheque issued but not presented' causes: MCQ with Answer and Explanation

Question

Share Report Error

A 'Cheque issued but not presented' causes:

A. Both equal

B. Overdraft in passbook

C. Cash book balance lower than passbook

D. Passbook balance lower than cash book

Answer: Option C

Solution (By JKSSB Mock Tests)

Unpresented cheque means cash book already reduced, but passbook not reduced, so passbook balance higher.

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 term 'Window Dressing' in accounting means:

A. Using standard accounting software

B. Making accounts transparent

C. Preparing accounts as per law

D. Manipulating accounts to present a better picture

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Correct Answer: Option D

Explanation:
Window dressing refers to presenting financial statements in a way that gives a more favorable impression than reality.

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

Question #2

In a partnership firm, if the Profit Sharing Ratio is changed, accumulated profits are distributed among partners in their:

A. Gaining Ratio

B. Sacrificing Ratio

C. Old Ratio

D. New Ratio

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Correct Answer: Option C

Explanation:
Accumulated profits were earned in the past when the old ratio was applicable; thus, they belong to the partners in their old profit sharing ratio.

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

Question #3

The 'Deferred Tax Asset' arises when:

A. Accounting income is less than taxable income

B. Tax rate increases

C. Accounting income is more than taxable income

D. Income tax is refunded

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Correct Answer: Option A

Explanation:
Deferred tax asset is recognized when accounting profit is lower than taxable profit due to timing differences, resulting in future tax savings.

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

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