Income and Expenditure Account is equivalent to: MCQ with Answer and Explanation

Income and Expenditure Account is equivalent to:
A. Cash Book
B. Profit and Loss Account
C. Balance Sheet
D. Trading Account
Answer: Option B
Solution (By JKSSB Mock Tests)
Income and Expenditure Account reveals surplus or deficit for a period, similar to P&L Account.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is a 'Non-Voucher' transaction?
A. Cash sale with cash memo
B. Bank deposit with pay-in slip
C. Cash purchase with receipt
D. Depreciation entry

Correct Answer: Option D


Explanation:
Depreciation is a non-cash transaction and does not involve a source document like invoice; it's recorded via journal voucher but is not an external voucher. But the term 'non-voucher' might refer to transactions without a supporting document. Depreciation entry has no source document, so it's often a journal entry. The question is ambiguous but likely pointing to depreciation as a non-cash transaction without physical voucher. Answer A.

Question #2
Under the Income Tax Act, the deduction under Section 80TTA is available for interest earned on savings bank accounts. What is the maximum limit for this deduction?
A. ₹50,000
B. ₹25,000
C. ₹10,000
D. ₹1,00,000

Correct Answer: Option A


Explanation:
Section 80TTA allows a deduction of up to ₹50,000 for interest income earned from savings accounts maintained with banks or co-operative societies. (Note: 80TTB provides ₹50,000 for senior citizens on all deposits).

Question #3
The 'Controller General of Accounts' (CGA) is under:
A. CAG
B. Ministry of Finance
C. RBI
D. NITI Aayog

Correct Answer: Option B


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