Income received in advance is a: MCQ with Answer and Explanation

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Income received in advance is a:

A. Fixed Asset

B. Current Asset

C. Current Liability

D. Fictitious Asset

Answer: Option C

Solution (By JKSSB Mock Tests)

Money received for services yet to be performed creates an obligation to provide the service, thus it is a liability.

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

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Question #1

The 'Labour Turnover' rate measures:

A. Overtime

B. Absenteeism

C. Rate of change in labour force

D. Efficiency of workers

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Correct Answer: Option C

Explanation:
Labour turnover indicates the frequency of employees leaving and being replaced.

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

Question #2

The primary objective of management accounting is to:

A. Ensure compliance with accounting standards

B. Calculate tax liability

C. Provide information to external stakeholders

D. Assist management in planning and decision-making

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Correct Answer: Option D

Explanation:
Management accounting focuses on providing internal management with the financial and non-financial information needed for planning, controlling, and decision-making.

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Question #3

In the modern approach, an increase in asset is:

A. Credited

B. No entry

C. Debited

D. Transferred

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Correct Answer: Option C

Explanation:
In modern equation approach, increase in asset is debited; decrease credited.

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

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