Identify the non-cash item from the following: MCQ with Answer and Explanation

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Identify the non-cash item from the following:

A. Dividend paid

B. Wages paid

C. Depreciation

D. Purchase of machinery

Answer: Option C

Solution (By JKSSB Mock Tests)

Depreciation is the systematic allocation of asset cost; it does not involve any actual outflow of cash.

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

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Question #1

The full form of GAAP is:

A. Generally Accepted Accounting Principles

B. Global Accounting and Auditing Practices

C. Generally Accepted Auditing Principles

D. Generally Accepted Accounting Procedures

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Correct Answer: Option A

Explanation:
GAAP stands for Generally Accepted Accounting Principles.

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

Question #2

A favorable balance as per Pass Book means:

A. Overdraft

B. Debit balance

C. Credit balance

D. Nil balance

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Correct Answer: Option C

Explanation:
From the bank's perspective, customer deposits are liabilities. A positive (favorable) balance is therefore a credit balance in the Pass Book.

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Question #3

Assertion (A): Single Entry System is considered unscientific. Reason (R): It does not strictly follow the dual aspect principle for all transactions.

A. A is true but R is false

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

C. A is false but R is true

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

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Correct Answer: Option B

Explanation:
Single entry is unscientific and incomplete because it ignores the two-fold aspect (debit and credit) for many transactions, maintaining only cash and personal accounts.

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