The 'Business Entity Concept' means: MCQ with Answer and Explanation

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The 'Business Entity Concept' means:

A. The owner and business are the same

B. The business is a separate entity from its owners

C. Only companies are separate entities

D. The business is not liable for debts

Answer: Option B

Solution (By JKSSB Mock Tests)

For accounting purposes, the business is treated as distinct from the proprietor.

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

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Question #1

The 'Section 115BAC' relates to:

A. New tax regime for individuals and HUFs

B. Tax on dividends

C. Alternate Minimum Tax

D. Minimum Alternate Tax

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Correct Answer: Option A

Explanation:
Section 115BAC provides the concessional tax regime for individuals/HUFs.

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

Question #2

A 'Debit Note' is issued by:

A. Seller to buyer for goods returned

B. Buyer to seller for goods returned

C. Auditor to company

D. Bank to customer

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Correct Answer: Option B

Explanation:
A debit note is prepared by the buyer when returning goods, informing the seller that his account is debited.

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

Question #3

In a bank reconciliation statement, an overdraft as per the cash book will be increased by:

A. Direct deposit by customer

B. Cheques deposited but not credited

C. Cheques issued but not presented for payment

D. Interest allowed by bank

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Correct Answer: Option C

Explanation:
Cheques issued but not presented reduce the bank balance, so they are added to the overdraft balance as per the cash book to reconcile with the pass book.

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

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