If the Trial Balance does not tally, the difference is temporarily transferred to: MCQ with Answer and Explanation

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If the Trial Balance does not tally, the difference is temporarily transferred to:

A. Capital Account

B. Profit & Loss Account

C. Suspense Account

D. Drawings Account

Answer: Option C

Solution (By JKSSB Mock Tests)

A Suspense Account is opened temporarily to bridge the gap in a mismatched trial balance until the errors are located and rectified.

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

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Question #1

Which formula determines the Return on Equity (ROE)?

A. Operating Profit / Capital Employed

B. Gross Profit / Sales

C. Net Profit available to Equity Shareholders / Equity Shareholder's Funds

D. Net Profit / Total Assets

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Correct Answer: Option C

Explanation:
ROE measures the profitability of equity funds, showing how much profit a company generates with the money shareholders have invested.

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

Question #2

A newly admitted partner acquires his share of profit from:

A. The firm directly

B. Old partners by way of sacrifice

C. Profit and loss account

D. Outside parties

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Correct Answer: Option B

Explanation:
A new partner's share comes from the old partners who sacrifice a portion of their profit share.

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

Question #3

Zero Base Budgeting requires:

A. No justification

B. Using last year's budget as base

C. Justification of every budget item from scratch

D. Only incremental changes

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Correct Answer: Option C

Explanation:
ZBB starts from a 'zero base', and every function and expenditure must be justified.

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

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