The balance of the Cash Book represents: MCQ with Answer and Explanation

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The balance of the Cash Book represents:

A. Cash in hand only

B. Cash at bank only

C. Cash in hand and cash at bank

D. Cash in hand, cash at bank, and petty cash

Answer: Option C

Solution (By JKSSB Mock Tests)

A standard triple-column cash book records both cash in hand and cash at bank transactions, so its balance represents both.

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

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Question #1

A 'Voucher' that records a transaction involving both cash and bank is called:

A. Receipt voucher

B. Journal voucher

C. Payment voucher

D. Contra voucher

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Correct Answer: Option D

Explanation:
Contra vouchers record transactions like cash deposited into bank or withdrawn from bank.

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Question #2

Which of the following describes a 'Fictitious Asset'?

A. Assets without physical existence but having realizable value like patents

B. Assets created to evade taxes

C. Current assets held in foreign currency

D. Expenses/losses written off over a period of time, having no realizable value

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Correct Answer: Option D

Explanation:
Fictitious assets (e.g., preliminary expenses, debit balance of P&L) are not true assets; they are unamortized expenses/losses with zero resale value.

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Question #3

The term 'IFRS' stands for:

A. International Fiscal Reporting Standards

B. Indian Financial Reporting Standards

C. Indian Fiscal Reporting System

D. International Financial Reporting Standards

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Correct Answer: Option D

Explanation:
IFRS stands for International Financial Reporting Standards, issued by IASB.

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

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