In financial management, 'Float' refers to: MCQ with Answer and Explanation

Question

Share Report Error

In financial management, 'Float' refers to:

A. The time difference between writing a cheque and its actual clearance from the bank

B. Issuing new shares

C. Sinking fund investments

D. The amount of petty cash

Answer: Option A

Solution (By JKSSB Mock Tests)

Float is the delay in the clearing system, creating a temporary discrepancy between the firm's cash balance and the bank's ledger balance.

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Share Report

The policies and procedures adopted by management to assist in achieving orderly and efficient conduct of business is known as:

A. Continuous Audit

B. Vouching

C. Statutory Audit

D. Internal Control

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Internal control is the system designed by management to safeguard assets, ensure accurate records, and promote operational efficiency.

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

Question #2

Share Report

Standard costing involves:

A. Setting predetermined costs and comparing with actual costs

B. Recording historical costs

C. Calculating only variable costs

D. Budgeting only

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Standard costing is a technique where standard costs are established, and variances from actual costs are analyzed.

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

Question #3

Share Report

X and Y are partners sharing profits 3:2. Z is admitted for 1/4th share. New profit-sharing ratio will be:

A. 9:3:4

B. 6:4:5

C. 9:6:5

D. 3:2:1

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Remaining share = 1 - 1/4 = 3/4 distributed in 3:2, so X = 3/4 * 3/5 = 9/20, Y = 3/4 * 2/5 = 6/20, Z = 5/20. Ratio = 9:6:5.

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

Explore All Accountancy and Book Keeping MCQs