A 'Suspense Account' is a: MCQ with Answer and Explanation

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A 'Suspense Account' is a:

A. Real account

B. Temporary account

C. Nominal account

D. Personal account

Answer: Option B

Solution (By JKSSB Mock Tests)

Suspense account is a temporary account opened to make trial balance agree.

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

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Question #1

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The 'Duty Drawback' scheme under Customs provides:

A. No refund

B. GST refund

C. Exemption from income tax

D. Refund of duties on imported inputs used in exported goods

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Correct Answer: Option D

Explanation:
Duty drawback refunds customs/excise duties paid on inputs used in exported products.

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

Question #2

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A: Cash-based accounting records transactions only when cash is received or paid. R: Cash-based accounting provides a true and fair view of the financial position. Choose the correct option.

A. A is true but R is false

B. Both A and R are true but R is NOT the correct explanation of A

C. Both A and R are true and R is the correct explanation of A

D. A is false but R is true

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Correct Answer: Option A

Explanation:
Cash-based accounting only records cash inflows and outflows. It does not record credit transactions or outstanding/prepaid items, hence it fails to provide a true and fair view of the financial position. A is true, R is false.

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