The 'Cash Book' serves as: MCQ with Answer and Explanation

Question
The 'Cash Book' serves as:
A. Only a journal
B. Both journal and ledger for cash transactions
C. Only a ledger
D. A subsidiary book for all transactions
Answer: Option B
Solution (By JKSSB Mock Tests)
Cash book records all cash and bank transactions, functioning as journal (original entry) and ledger.
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
In a journal entry, if an asset is destroyed by fire and fully insured, which account is debited?
A. Asset Account
B. Insurance Company (Claim) Account
C. Sales Account
D. Profit & Loss Account
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Because the loss is fully insured, the insurance company becomes a debtor for the claim amount, hence debited.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Minimum Alternate Tax' (MAT) is applicable to:
A. Companies paying low or no tax due to exemptions
B. Individuals
C. Partnership firms
D. All taxpayers
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
MAT ensures that companies with substantial book profits pay at least a minimum amount of tax.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Expenditure incurred on overhauling a second-hand machinery purchased recently to put it in working condition is:
A. Loss
B. Revenue Expenditure
C. Deferred Revenue Expenditure
D. Capital Expenditure
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
All costs incurred before a fixed asset is ready for its intended use are capitalized.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Explore All Accountancy and Book Keeping MCQs
Today's Top Topics
Accountancy and Book Keeping 1861 Statistics 1318
Explore Subjects
Accountancy and Statistics 3179 Economy GK 2220 English 15164 Computer 5279 Current Affairs 575
Practice Mix
Which of the following is an indirect tax in India?
The valve between the left atrium and left ventricle is the:
A person faces north. He turns 45° left, then 90° right, then 45° left. Which direction is he facing?
Under the Income Tax Act, the 'TDS' on the sale of an immovable property (other than agricultural land) by a resident is governed by which section, and what is the rate?
In 'Piecemeal Distribution' during dissolution, the first priority for payment of outside liabilities is: