In the three-column cash book, discount columns are: MCQ with Answer and Explanation

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In the three-column cash book, discount columns are:

A. Balanced like cash columns

B. Used for bank reconciliation

C. Not posted, only totalled and transferred

D. Posted to ledger accounts individually

Answer: Option C

Solution (By JKSSB Mock Tests)

Discount columns in cash book are merely memorandum; total discount allowed and received are posted to respective ledger accounts, not individually.

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

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Question #1

An increase in the value of a fixed asset is credited to:

A. Revaluation Reserve

B. Profit & Loss Account

C. Capital Reserve

D. General Reserve

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Correct Answer: Option A

Explanation:
Increase in value on revaluation is credited to Revaluation Reserve, as per AS 10.

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

Question #2

A: Financial management aims to maximize shareholder wealth. R: Financial management focuses solely on raising funds. Choose the correct option.

A. Both A and R are true and R is the correct explanation of A

B. Both A and R are true but R is NOT the correct explanation of A

C. A is true but R is false

D. A is false but R is true

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Correct Answer: Option C

Explanation:
The primary objective of financial management is to maximize shareholder wealth. However, it involves not just raising funds, but also their effective utilization, dividend decisions, and working capital management. A is true, R is false.

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

Question #3

The 'Controller General of Accounts' (CGA) is under:

A. Ministry of Finance

B. RBI

C. NITI Aayog

D. CAG

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Correct Answer: Option A

Explanation:
CGA is the principal accounting advisor to the Government of India, functioning under Ministry of Finance.

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

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