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

Identify the non-cash item from the following:
A. Purchase of machinery
B. Dividend paid
C. Wages paid
D. Depreciation
Answer: Option D
Solution (By JKSSB Mock Tests)
Depreciation is the systematic allocation of asset cost; it does not involve any actual outflow of cash.

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Practice More Accountancy and Book Keeping Questions

Question #1
Under the General Financial Rules (GFR) 2017, every government servant is expected to maintain absolute integrity and:
A. Absolute honesty
B. Both absolute honesty and absolute devotion to duty
C. Absolute devotion to duty
D. Absolute political neutrality

Correct Answer: Option B


Explanation:
Rule 3 of GFR 2017 states that every government servant is expected to maintain absolute integrity, absolute honesty, and absolute devotion to duty in the performance of their official duties.

Question #2
The 'HSN Code' requirement for invoices under GST for turnover above ₹5 crore:
A. 2-digit HSN
B. 8-digit HSN
C. 6-digit HSN
D. 4-digit HSN

Correct Answer: Option C


Explanation:
Taxpayers with turnover > ₹5 crore must mention 6-digit HSN on invoices.

Question #3
A business paid ₹12,000 as insurance premium for the year ending 31st March 2025, out of which ₹3,000 relates to next year. Insurance expense for current year is:
A. ₹3,000
B. ₹15,000
C. ₹12,000
D. ₹9,000

Correct Answer: Option D


Explanation:
Prepaid ₹3,000, so current year expense = 12,000 - 3,000 = ₹9,000.