In journal, a compound entry involves: MCQ with Answer and Explanation

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In journal, a compound entry involves:

A. Only two accounts

B. One debit and one credit only

C. Only nominal accounts

D. More than one debit or more than one credit

Answer: Option D

Solution (By JKSSB Mock Tests)

A compound journal entry has more than one debit or more than one credit, affecting multiple accounts.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

The 'Materiality' of an item is determined by:

A. Size and nature of the item

B. Government rule

C. Decision of auditor

D. Only the amount

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Correct Answer: Option A

Explanation:
Materiality depends on relative size and nature; an item is material if its omission/misstatement could influence decisions.

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

Question #2

In a partnership firm, if the Profit Sharing Ratio is changed, accumulated profits are distributed among partners in their:

A. Old Ratio

B. Gaining Ratio

C. New Ratio

D. Sacrificing Ratio

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Correct Answer: Option A

Explanation:
Accumulated profits were earned in the past when the old ratio was applicable; thus, they belong to the partners in their old profit sharing ratio.

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

Question #3

What is the primary benefit of Just-in-Time (JIT) funding under the PFMS framework?

A. Slows down project implementation

B. Eliminates state governments from the process

C. Increases bank interest for agencies

D. Reduces the borrowing cost of the Central Government by preventing unspent balances

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Correct Answer: Option D

Explanation:
JIT ensures funds are released only when actually needed for expenditure, minimizing the government's borrowing costs on idle parked funds.

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

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