A sales book is meant to record: MCQ with Answer and Explanation

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A sales book is meant to record:

A. Sales of assets

B. Cash sales of goods

C. Credit sales of goods

D. All sales of goods

Answer: Option C

Solution (By JKSSB Mock Tests)

Sales book records only credit sales of goods in which the trader deals.

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

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Question #1

Under the 'Reducing Balance Method' of depreciation, the asset's value:

A. Remains constant

B. Becomes zero at the end of useful life

C. Never becomes zero

D. Becomes negative

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Correct Answer: Option C

Explanation:
Under WDV method, the book value never reaches zero, as depreciation is charged on reducing balance.

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

Question #2

A system of accounting that combines features of both cash and accrual bases is termed:

A. Government Accounting

B. Mercantile System

C. Hybrid System

D. Single Entry System

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Correct Answer: Option C

Explanation:
In a hybrid system, revenues might be recorded on a cash basis while expenses are recorded on an accrual basis, often used by certain professionals.

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

Question #3

A 'Endowment Fund' received by a non-profit organisation is treated as:

A. Expense

B. Income

C. Capital receipt

D. Revenue receipt

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Correct Answer: Option C

Explanation:
Endowment fund is a capital receipt, usually invested, and only the income is used.

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

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