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. Only nominal accounts

C. One debit and one credit only

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 'Current Service Cost' and 'Net Interest' on defined benefit liability/asset are recognised in:

A. Profit or Loss

B. Balance Sheet directly

C. OCI

D. Both P&L and OCI

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Correct Answer: Option A

Explanation:
Service cost and net interest are recognised in P&L; re-measurements in OCI.

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

Question #2

In the context of the Trial Balance, which of the following is correct?

A. It provides a summary of all ledger balances.

B. It is an account in the ledger.

C. It proves that no errors have been made.

D. It is prepared at the beginning of the year.

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Correct Answer: Option A

Explanation:
A Trial Balance is a statement (not an account) that summarizes all ledger balances to check arithmetical accuracy.

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

Question #3

Under the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971, the CAG audits the accounts of:

A. Union and State Governments only

B. Union, State Governments, and Government Companies

C. Union, State Governments, Government Companies, and bodies substantially financed by the government

D. Only the Union Government

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Correct Answer: Option C

Explanation:
The CAG's DPC Act, 1971, empowers the CAG to audit the Consolidated Fund of India and States, government companies, and any other bodies or authorities substantially financed by government grants or loans.

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

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