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 5,000
B. Deduct Rs 10,000
C. Add 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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Question #1
The 'Target Costing' approach begins with:
A. Determining cost of production
B. Calculating actual cost
C. Budgeting
D. Setting a desired selling price and then deducting desired profit margin to arrive at target cost
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Correct Answer: Option D

Explanation:
Target costing is a market-driven approach: Target cost = Target selling price - Desired profit.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Finance Act' gives effect to:
A. Financial proposals of the government for the year
B. Company law amendments
C. Insurance regulation
D. Banking regulation
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Correct Answer: Option A

Explanation:
Finance Act is passed to enact the tax proposals of the budget.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Which of the following is a direct tax levied by local bodies?
A. GST
B. Customs duty
C. Property tax
D. Excise duty
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Correct Answer: Option C

Explanation:
Property tax is a direct tax levied by municipal bodies on property owners.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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