The petty cash book is balanced: MCQ with Answer and Explanation

Question

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The petty cash book is balanced:

A. At the end of the month

B. When it is replenished

C. At the end of the year

D. Daily

Answer: Option B

Solution (By JKSSB Mock Tests)

Under imprest system, petty cash book is closed when cash is replenished, not periodically.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

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In a partnership firm, if the Profit Sharing Ratio is changed, accumulated profits are distributed among partners in their:

A. Sacrificing Ratio

B. New Ratio

C. Gaining Ratio

D. Old Ratio

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Correct Answer: Option D

Explanation:
Accumulated profits were earned in the past when the old ratio was applicable; thus, they belong to the partners in their old profit sharing ratio.

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

Question #2

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In the context of PFMS, the 'Core Banking Solution' (CBS) integration ensures that:

A. Funds are credited to the beneficiary's account in real-time without manual intervention

B. The RBI can monitor all private bank transactions

C. Government departments can open bank accounts directly

D. Tax collections are automatically deposited into the Consolidated Fund

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Correct Answer: Option A

Explanation:
CBS integration with PFMS ensures that once a payment instruction is processed, the funds are credited directly to the beneficiary's bank account in real-time, eliminating manual handling and delays.

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