A hybrid system of accounting is a mixture of: MCQ with Answer and Explanation

A hybrid system of accounting is a mixture of:
A. Cash basis and Accrual basis
B. Financial and Cost accounting
C. Indian GAAP and IFRS
D. Double entry and Single entry
Answer: Option A
Solution (By JKSSB Mock Tests)
In a hybrid system, typically incomes are recorded on a cash basis while expenses are recorded on an accrual basis.

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Practice More Accountancy and Book Keeping Questions

Question #1
A: The Public Account of India includes funds like the Provident Fund. R: The government can withdraw money from the Public Account without parliamentary approval. Choose the correct option.
A. A is false but R is true
B. A is true but R is false
C. Both A and R are true but R is NOT the correct explanation of A
D. Both A and R are true and R is the correct explanation of A

Correct Answer: Option D


Explanation:
The Public Account of India holds money like Provident Funds, where the government acts as a banker. Since these funds belong to others, the government can make payments from this account without parliamentary approval. Both are true and R explains A.

Question #2
Public Financial Management System (PFMS) helps in:
A. Preventing leakages
B. Ensuring last-mile connectivity in fund transfer
C. All of the above
D. Monitoring government subsidies

Correct Answer: Option C


Explanation:
PFMS aims to track funds, monitor subsidies, ensure DBT, and reduce leakages in public expenditure.

Question #3
The 'Incremental Borrowing Rate' is used in lease accounting when:
A. The lessor does not disclose rate
B. Never
C. The lessee cannot determine the interest rate implicit in the lease
D. For all leases

Correct Answer: Option C


Explanation:
If implicit rate is not readily determinable, lessee uses its incremental borrowing rate.