A 'Contra Entry' in the cash book involves: MCQ with Answer and Explanation

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A 'Contra Entry' in the cash book involves:

A. Bank and discount columns

B. Only bank column

C. Cash and discount columns

D. Cash and bank columns only

Answer: Option D

Solution (By JKSSB Mock Tests)

Contra entries affect both cash and bank columns (e.g., cash deposited, cash withdrawn).

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

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Question #1

The 'Peer Review' of audit firms is conducted by:

A. MCA

B. ICAI's Peer Review Board

C. NFRA

D. SEBI

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Correct Answer: Option B

Explanation:
ICAI has a Peer Review Board to ensure quality of audit services.

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

Question #2

Under single entry system, which of the following is usually not maintained?

A. Debtors and creditors accounts

B. Real and nominal accounts

C. Personal accounts

D. Cash book

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Correct Answer: Option B

Explanation:
Single entry often lacks complete double entry; real and nominal accounts may not be fully maintained.

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

Question #3

The point at which Total Revenue equals Total Cost is known as:

A. Break-Even Point

B. Maximum Profit Point

C. Shut-down Point

D. Margin of Safety

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Correct Answer: Option A

Explanation:
At the break-even point, a business makes neither a profit nor a loss (Total Revenue = Total Costs).

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

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