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

Question
The 'Cash Basis' of accounting recognizes:
A. Only credit transactions
B. Revenue when earned and expenses when incurred
C. Revenue when cash is received and expenses when paid
D. Only non-cash items
Answer: Option C
Solution (By JKSSB Mock Tests)
Cash basis records only cash inflows and outflows.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
In Social Accounting, which of the following is considered an internal stakeholder?
A. Government
B. Local Community
C. Employees
D. Environmental Agencies
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Correct Answer: Option C

Explanation:
Employees work within the organization and are directly involved in its operations, classifying them as internal stakeholders.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'GST Annual Return' GSTR-9 is required for:
A. Composition dealers
B. All registered persons
C. Regular taxpayers (not composition dealers, not ISD, etc.)
D. Input service distributors
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Correct Answer: Option C

Explanation:
GSTR-9 is filed by normal taxpayers; composition taxpayers file GSTR-4 annually.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A 'Master Budget' is a summary of:
A. Only production budget
B. Only cash budget
C. All functional budgets
D. Only sales budget
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Correct Answer: Option C

Explanation:
Master budget consolidates all subsidiary budgets into one comprehensive plan.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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