The Companies Act, 2013 mandates that all companies must maintain their books of accounts under the: MCQ with Answer and Explanation

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The Companies Act, 2013 mandates that all companies must maintain their books of accounts under the:

A. Single Entry System

B. Accrual (Mercantile) System

C. Cash System

D. Hybrid System

Answer: Option B

Solution (By JKSSB Mock Tests)

Section 128 of the Companies Act, 2013 strictly requires companies to maintain accounts on an accrual basis and according to the double-entry system.

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

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Question #1

Budgetary control is a system of controlling costs that includes:

A. Preparation of budgets only

B. Hiring of staff

C. Fixing of selling prices

D. Continuous comparison of actuals with budgets

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Correct Answer: Option D

Explanation:
Budgetary control involves preparing budgets and continuously comparing actual performance against the budget to take corrective action.

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Question #2

Discount Allowed is considered a:

A. Direct Expense

B. Financial Expense

C. Selling & Distribution Expense

D. Factory Expense

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Correct Answer: Option C

Explanation:
Discount allowed is given to encourage prompt payment by customers, treated as a selling/administrative expense in the P&L Account.

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Question #3

Call money market deals in loans for a maximum period of:

A. 1 year

B. 5 years

C. 1 day to 14 days

D. 24 hours only

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Correct Answer: Option C

Explanation:
Call money refers to overnight loans, while notice money covers loans from 2 to 14 days, generally used for inter-bank transactions.

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

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