'Dividend' can be paid out of: MCQ with Answer and Explanation

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'Dividend' can be paid out of:

A. Current year's profits or accumulated profits

B. Borrowed funds

C. Securities premium

D. Capital

Answer: Option A

Solution (By JKSSB Mock Tests)

Dividend is paid only out of profits.

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

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Question #1

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A Cash Book with Cash, Bank, and Discount columns is called a:

A. Two-column Cash Book

B. Petty Cash Book

C. Simple Cash Book

D. Three-column Cash Book

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Correct Answer: Option D

Explanation:
A three-column cash book tracks cash transactions, bank transactions, and discounts allowed/received simultaneously.

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

Question #2

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Recent developments in accounting include the increased use of:

A. Paper-based ledgers

B. Manual voucher posting

C. Single entry only

D. Cloud accounting and AI

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Correct Answer: Option D

Explanation:
Technological advancements like cloud accounting, artificial intelligence, and blockchain are recent trends.

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

Question #3

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The 'Traditional Approach' classifies accounts into:

A. Current and non-current

B. Real, personal, nominal

C. Assets, liabilities, equity

D. Income, expenses, assets

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Correct Answer: Option B

Explanation:
Under traditional British approach, accounts are classified as personal, real, and nominal.

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

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