In a BRS, when a cheque is issued but not presented, the cash book balance is: MCQ with Answer and Explanation

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In a BRS, when a cheque is issued but not presented, the cash book balance is:

A. Unaffected

B. Higher than the pass book balance

C. Lower than the pass book balance

D. Equal to the pass book balance

Answer: Option C

Solution (By JKSSB Mock Tests)

Issuing a cheque immediately reduces the cash book balance, but the bank balance (pass book) remains high until the cheque is cleared.

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

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A Value Added Statement is an important component of:

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Correct Answer: Option D

Explanation:
A Value Added Statement shows how much wealth the company has created and how it is distributed among employees, government, providers of capital, and retained earnings.

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Question #2

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Correct Answer: Option C

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Free samples are an advertising expense (debit), and they reduce the stock of purchased goods at cost price (credit Purchases/Trading).

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

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Correct Answer: Option B

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

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