The 'Cash Basis' of accounting recognizes: MCQ with Answer and Explanation

Question

Share Report Error

The 'Cash Basis' of accounting recognizes:

A. Revenue when earned and expenses when incurred

B. Only non-cash items

C. Only credit transactions

D. Revenue when cash is received and expenses when paid

Answer: Option D

Solution (By JKSSB Mock Tests)

Cash basis records only cash inflows and outflows.

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Under GST, the Reverse Charge Mechanism (RCM) means:

A. The tax rate is negative

B. Liability to pay tax shifts from the supplier to the recipient of goods/services

C. Exports are tax-free

D. The government pays tax to the supplier

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Normally, the supplier collects and pays GST. Under RCM, the buyer/recipient is directly liable to pay the tax to the government.

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

Question #2

The term 'FIFO' stands for:

A. First In, First Over

B. Fixed In, Fixed Out

C. First In, First Out

D. Final In, First Out

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
FIFO is an inventory valuation method where the cost of the earliest goods purchased is assigned to the cost of goods sold first.

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

Question #3

The process of transferring entries from the Journal to the respective accounts is called:

A. Balancing

B. Summarising

C. Posting

D. Journalising

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Posting is the technical term for transferring debit and credit amounts from the journal to the appropriate ledger accounts.

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

Explore All Accountancy and Book Keeping MCQs