In the context of single entry system, 'Net Worth' means: MCQ with Answer and Explanation

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In the context of single entry system, 'Net Worth' means:

A. Cash in hand

B. Total liabilities

C. Excess of assets over liabilities

D. Total assets

Answer: Option C

Solution (By JKSSB Mock Tests)

Net worth = Total assets - Total liabilities, representing owner's equity.

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

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Question #1

A 'Cash Generating Unit' is defined under:

A. AS 2 Inventories

B. AS 28 Impairment of Assets

C. AS 10 Fixed Assets

D. AS 14 Amalgamation

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Correct Answer: Option B

Explanation:
CGU is a concept used in impairment testing under AS 28.

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

Question #2

The 'Baggage Rules' under Customs provide for:

A. No allowance

B. Duty on all luggage

C. Duty-free allowances for passengers arriving in India

D. Duty on cargo

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Correct Answer: Option C

Explanation:
Baggage Rules specify the quantity and value of goods that can be brought duty-free.

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

Question #3

The debit balance in Pass Book indicates:

A. Favourable balance

B. Overdraft

C. Fixed deposit

D. Cash in hand

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Correct Answer: Option B

Explanation:
Pass Book is a copy of customer's account in bank's books. A debit balance means customer owes bank, i.e., overdraft.

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

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