The basic objective of bookkeeping is: MCQ with Answer and Explanation

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The basic objective of bookkeeping is:

A. To audit accounts

B. To maintain systematic records of transactions

C. To prepare financial statements only

D. To calculate profit

Answer: Option B

Solution (By JKSSB Mock Tests)

Bookkeeping is the art of recording business transactions in a systematic manner.

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

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Question #1

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A manager is entitled to a 5% commission on net profit BEFORE charging his commission. If profit is Rs 1,05,000, his commission is:

A. Rs 10,500

B. Rs 4,750

C. Rs 5,000

D. Rs 5,250

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Correct Answer: Option D

Explanation:
Commission = Profit * (Rate/100) = 1,05,000 * 5% = Rs 5,250.

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

Question #2

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A 'Suspense Account' is a:

A. Temporary account

B. Nominal account

C. Real account

D. Personal account

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Correct Answer: Option A

Explanation:
Suspense account is a temporary account opened to make trial balance agree.

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

Question #3

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Assertion (A): Under Ind AS 115, an entity should recognize revenue when (or as) it satisfies a performance obligation. Reason (R): A performance obligation is satisfied when the customer obtains control of the good or service. Choose the correct option.

A. Both A and R are true and R is the correct explanation of A

B. Both A and R are true but R is NOT the correct explanation of A

C. A is false but R is true

D. A is true but R is false

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Correct Answer: Option A

Explanation:
Ind AS 115's core principle is recognizing revenue upon satisfaction of performance obligations. Satisfaction occurs precisely when control of the underlying good or service transfers to the customer. R perfectly explains A.

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