A cheque of Rs 5,000 was deposited but dishonored. No entry was passed in the Cash Book. To reconcile from a favorable Cash Book balance, you should: MCQ with Answer and Explanation

Question

A cheque of Rs 5,000 was deposited but dishonored. No entry was passed in the Cash Book. To reconcile from a favorable Cash Book balance, you should:

A. Add Rs 10,000

B. Add Rs 5,000

C. Deduct Rs 10,000

D. Deduct Rs 5,000

Answer: Option D

Solution (By JKSSB Mock Tests)

The dishonor reduces the pass book balance. To match it, you must deduct the amount from the cash book balance.

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

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In cost accounting, Idle Time wages are usually charged to:

A. Profit & Loss Account (if abnormal)

B. Direct Labor Account

C. Factory Overheads

D. Both B and C

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Correct Answer: Option D

Explanation:
Normal idle time is charged to Factory Overheads, while abnormal idle time (e.g., strikes, power failure) is charged to the Costing P&L Account.

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Question #2

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Cash Flow Statement as per AS 3 classifies activities into:

A. Current and Non-current

B. Direct and Indirect

C. Revenue and Capital

D. Operating, Investing, and Financing

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Correct Answer: Option D

Explanation:
AS 3 requires classification into operating, investing, and financing activities.

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

Question #3

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The 'Indian Government Accounting Standards' (IGAS) are issued by:

A. Government Accounting Standards Advisory Board (GASAB)

B. RBI

C. ICAI

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Correct Answer: Option A

Explanation:
GASAB, under CAG, formulates IGAS for government accounting.

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

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