The 'Discount Column' in the three-column cash book is: MCQ with Answer and Explanation

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The 'Discount Column' in the three-column cash book is:

A. Only totalled and then posted to ledger

B. Used only for bank reconciliation

C. Balanced

D. Not used

Answer: Option A

Solution (By JKSSB Mock Tests)

Discount columns are not balanced; their totals are posted to discount allowed/received accounts.

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

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Question #1

The 'Non-Controlling Interest' (NCI) at acquisition date can be measured at:

A. Either fair value or proportionate share of net assets

B. Book value

C. Only proportionate share of net assets

D. Only fair value

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Correct Answer: Option A

Explanation:
Ind AS 103 allows a choice.

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Question #2

A flexible budget is designed to change in relation to:

A. Time period

B. Level of activity

C. Fixed expenses

D. Management decision

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Correct Answer: Option B

Explanation:
Flexible budget adjusts budgeted figures based on actual level of activity.

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Question #3

In financial management, if a company's Degree of Operating Leverage (DOL) is 2.5 and Degree of Financial Leverage (DFL) is 1.5, what is the Degree of Combined Leverage (DCL)?

A. 3.75

B. 1.0

C. 4.0

D. 1.66

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Correct Answer: Option A

Explanation:
DCL = DOL * DFL. Therefore, DCL = 2.5 * 1.5 = 3.75. This indicates that a 1% change in sales will result in a 3.75% change in EPS.

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