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. Used only for bank reconciliation

B. Only totalled and then posted to ledger

C. Balanced

D. Not used

Answer: Option B

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

A social audit is typically conducted by:

A. Only chartered accountants

B. Only government officials

C. Stakeholders, including community representatives

D. Only management

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Correct Answer: Option C

Explanation:
Social audit involves participation of various stakeholders, including the local community, to evaluate social performance.

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

Question #2

A suspense account with a credit balance indicates that:

A. Profit is overstated

B. Total of credit column of Trial Balance was higher

C. Assets exceed liabilities

D. Total of debit column of Trial Balance was higher

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Correct Answer: Option D

Explanation:
To force the Trial Balance to tally, a credit balance is placed in the suspense account to compensate for a heavier debit side.

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Question #3

The 'Subsequent Events' in audit refer to:

A. Events occurring between the balance sheet date and date of auditor's report

B. Events before the balance sheet date

C. Events after auditor's report

D. All future events

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Correct Answer: Option A

Explanation:
Auditors consider events after the reporting period up to the date of the report.

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

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