Cash basis accounting recognizes revenue when: MCQ with Answer and Explanation

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Cash basis accounting recognizes revenue when:

A. Sale invoice is raised

B. Services are performed

C. Cash is received

D. Order is received

Answer: Option C

Solution (By JKSSB Mock Tests)

Under cash basis, transactions are recorded only when cash is received or paid, not when accrued.

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

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The 'Equalisation Levy 2.0' at 2% applies to:

A. E-commerce supply of goods or services by non-resident e-commerce operator

B. All sales

C. All digital services

D. Online advertisement

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Correct Answer: Option A

Explanation:
Finance Act 2020 expanded equalisation levy to e-commerce operators at 2%.

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Question #2

Under PFMS, the centralized system module that facilitates direct payment to beneficiaries is called:

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B. E-Kuber

C. GSTN

D. SWIFT

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Correct Answer: Option A

Explanation:
The Direct Benefit Transfer (DBT) module in PFMS directly routes welfare funds into the authenticated bank accounts of citizens.

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Question #3

Which of the following is an example of an 'Artificial Personal Account'?

A. Reliance Industries Ltd. Account

B. Capital Account

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Correct Answer: Option A

Explanation:
Corporations and companies are artificial persons created by law, distinguishing them from natural persons (Ramesh) or representative accounts.

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