An amended Cash Book is prepared to correct: MCQ with Answer and Explanation

Question

Share Report Error

An amended Cash Book is prepared to correct:

A. Errors and omissions made in the Cash Book

B. Timing differences like unpresented cheques

C. Only bank overdrafts

D. Errors made by the bank

Answer: Option A

Solution (By JKSSB Mock Tests)

An amended cash book is prepared to adjust omissions (like bank charges) and errors in the cash book before preparing the final BRS.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

In the financial statements of a non-profit organisation, 'Capital Fund' is equivalent to:

A. Share capital

B. Current liabilities

C. Partners' capital

D. Owner's equity (net worth)

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Correct Answer: Option D

Explanation:
Capital fund represents the accumulated surplus and contributions, i.e., the net worth.

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

Question #2

Which of the following is not a purpose of financial audit?

A. Detecting fraud and error

B. Expressing opinion on true and fair view

C. Preparing financial statements

D. Ensuring compliance with laws

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Correct Answer: Option C

Explanation:
Preparation of financial statements is management's responsibility. Auditor expresses opinion on them.

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

Question #3

A: A partner has the right to inspect the books of accounts of the firm. R: This right is implied in the Partnership Act, 1932. Choose the correct option.

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

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

C. A is false but R is true

D. A is true but R is false

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Correct Answer: Option B

Explanation:
Every partner has the right to access and inspect the firm's books to ensure transparency and protect their interest. This right is expressly provided under Section 12(d) of the Indian Partnership Act, 1932. R correctly explains the legal basis.

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

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