The 'Depreciation' entry is: MCQ with Answer and Explanation

Question
The 'Depreciation' entry is:
A. Debit Asset A/c, Credit Depreciation A/c
B. Debit Depreciation A/c, Credit Asset A/c
C. Debit P&L A/c, Credit Depreciation A/c
D. Debit Depreciation A/c, Credit P&L A/c
Answer: Option B
Solution (By JKSSB Mock Tests)
Depreciation is an expense: Depreciation A/c Dr. To Asset A/c (or Accumulated Depreciation).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
Under FEMA, current account transactions are:
A. Only allowed for government
B. Prohibited
C. Only allowed for exporters
D. Generally permitted, subject to certain restrictions
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Correct Answer: Option D

Explanation:
Current account transactions are generally free unless specifically restricted.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
A tax is said to be progressive when:
A. The rate of tax increases as income increases
B. It is levied on essential commodities
C. The rate of tax remains constant
D. The rate of tax decreases as income increases
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Correct Answer: Option A

Explanation:
Progressive taxation means higher income earners pay a higher percentage of their income as tax, promoting wealth redistribution.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
S1: Under GST, the 'E-invoice' system generates an Invoice Reference Number (IRN) and a QR code. S2: The IRN is generated by the taxpayer's own accounting software without connecting to the government portal. Which statement(s) is/are correct?
A. Both S1 and S2
B. S2 only
C. S1 only
D. Neither S1 nor S2
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Correct Answer: Option C

Explanation:
S1 is correct; e-invoicing generates an IRN and QR code. S2 is incorrect because the IRN is generated by the Invoice Registration Portal (IRP) of the government, not locally by the taxpayer's software without validation.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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