An opening journal entry is passed to: MCQ with Answer and Explanation

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An opening journal entry is passed to:

A. Record the first transaction of the year

B. Bring forward the balances of assets, liabilities, and capital from the previous year

C. Adjust closing stock

D. Close nominal accounts

Answer: Option B

Solution (By JKSSB Mock Tests)

The opening entry records the closing balances of real and personal accounts from the previous year into the new books.

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

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Question #1

The penalty for late filing of GSTR-3B is:

A. ₹50 per day (₹25 CGST + ₹25 SGST)

B. ₹500 per day

C. ₹200 per day

D. ₹100 per day

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Correct Answer: Option A

Explanation:
Late fee is ₹50 per day (₹25 CGST + ₹25 SGST) for normal returns.

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

Question #2

Which of the following ratios is a measure of long-term solvency?

A. Quick ratio

B. Current ratio

C. Inventory turnover ratio

D. Debt-equity ratio

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Correct Answer: Option D

Explanation:
Debt-equity ratio indicates financial leverage and long-term solvency.

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

Question #3

A 'Secret Reserve' is created by:

A. Undervaluation of assets or overstatement of liabilities

B. Overstatement of assets

C. Only banks

D. Disclosure in notes

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Correct Answer: Option A

Explanation:
Secret reserve is created by showing lower profits, like undervaluing stock or overstating provision, not disclosed in balance sheet.

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

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