The 'Accrual Concept' is also known as: MCQ with Answer and Explanation

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The 'Accrual Concept' is also known as:

A. Single entry

B. Mercantile system

C. Cash system

D. Hybrid system

Answer: Option B

Solution (By JKSSB Mock Tests)

Accrual basis is also called mercantile basis, where transactions are recorded when they occur, not when cash is paid/received.

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

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Question #1

The 'Insolvency and Bankruptcy Code' (IBC) 2016 provides:

A. For winding up of companies only

B. Time-bound resolution of insolvency and bankruptcy

C. Audit procedures

D. Tax collection

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Correct Answer: Option B

Explanation:
IBC aims at resolution in a time-bound manner, maximising asset value.

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

Question #2

In a partnership, 'Profit and Loss Appropriation Account' is a part of:

A. Profit and Loss Account

B. Trading Account

C. Double entry system, prepared after P&L Account

D. Balance Sheet

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Correct Answer: Option C

Explanation:
It is prepared after determining net profit to show its distribution among partners.

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Question #3

Which of the following is not a component of budgetary control?

A. Corrective action

B. Tax filing

C. Budgeting

D. Comparison of actuals with budgets

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Correct Answer: Option B

Explanation:
Budgetary control involves planning, measuring actual performance, comparing, and taking corrective action.

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

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