In which book, credit purchase of machinery is recorded? MCQ with Answer and Explanation

Question
In which book, credit purchase of machinery is recorded?
A. Sales book
B. Purchase book
C. Journal Proper
D. Cash book
Answer: Option C
Solution (By JKSSB Mock Tests)
Purchase book is for credit purchases of goods. Machinery is an asset, so credit purchase is recorded in Journal Proper.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
According to the Garner vs. Murray rule, the deficiency of an insolvent partner must be borne by solvent partners in their:
A. Profit Sharing Ratio
B. Gaining Ratio
C. Equal Ratio
D. Capital Ratio just before dissolution
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Correct Answer: Option D

Explanation:
The landmark ruling states that a capital loss due to insolvency must be borne by solvent partners in proportion to their last agreed capitals.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Performance Budgeting' technique focuses on:
A. Outputs and outcomes
B. Past performance
C. Cash flows
D. Inputs only
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Correct Answer: Option A

Explanation:
Performance budgeting links funding to results, emphasizing outputs and outcomes rather than just expenditure.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
In financial statement analysis, the current ratio is calculated as:
A. Total assets / Total liabilities
B. Current assets / Current liabilities
C. Quick assets / Current liabilities
D. Current liabilities / Current assets
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Correct Answer: Option B

Explanation:
Current ratio = Current assets / Current liabilities, measuring short-term liquidity.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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