S1: Bank Reconciliation Statement is prepared to find the causes of difference between Cash Book and Pass Book. S2: BRS is prepared on a specific date. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: Bank Reconciliation Statement is prepared to find the causes of difference between Cash Book and Pass Book. S2: BRS is prepared on a specific date. Which statement(s) is/are correct?
A. Both S1 and S2
B. Neither S1 nor S2
C. S1 only
D. S2 only
Answer: Option A
Solution (By JKSSB Mock Tests)
The primary objective of BRS is to identify and explain the reasons for the difference in balances between the Cash Book and the Bank Pass Book. It is always prepared for a specific date to compare the balances on that day. Both are correct.
S1: The Trading Account shows the gross profit or loss. S2: The Profit and Loss Account shows the net profit or loss. Which statement(s) is/are correct?
Explanation:
The Trading Account calculates Gross Profit/Loss by matching direct expenses with net sales. The Profit and Loss Account calculates Net Profit/Loss by matching all indirect expenses and incomes with the Gross Profit. Both are correct.
Explanation:
The Accounting Period Concept artificially breaks the continuous life of a business into standard intervals (usually 12 months) for reporting purposes.
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