A 'Drawings' account is a: MCQ with Answer and Explanation

A 'Drawings' account is a:
A. Real account
B. Personal account
C. Nominal account
D. Valuation account
Answer: Option B
Solution (By JKSSB Mock Tests)
Drawings account represents the proprietor, hence it is a personal account.

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Practice More Accountancy and Book Keeping Questions

Question #1
A social audit is typically conducted by:
A. Stakeholders, including community representatives
B. Only government officials
C. Only management
D. Only chartered accountants

Correct Answer: Option A


Explanation:
Social audit involves participation of various stakeholders, including the local community, to evaluate social performance.

Question #2
The term 'Marshalling' in the context of a Balance Sheet means:
A. Writing off bad debts
B. Arranging assets and liabilities in a specific order of liquidity or permanence
C. Totaling the assets and liabilities
D. Transferring net profit to capital

Correct Answer: Option B


Explanation:
Marshalling refers to the logical sequencing of assets and liabilities to make the balance sheet easily readable and analytical.

Question #3
In the context of the Indian Financial System, the 'National Housing Bank' (NHB) was established as a wholly owned subsidiary of which institution?
A. Reserve Bank of India
B. Ministry of Finance
C. State Bank of India
D. Securities and Exchange Board of India

Correct Answer: Option A


Explanation:
The National Housing Bank (NHB) was set up in 1988 as a wholly owned subsidiary of the Reserve Bank of India (RBI) to regulate and promote housing finance institutions. (Note: It was later transferred to the central government in 2019, but historically it was an RBI subsidiary).