The primary purpose of a 'Bank Reconciliation Statement' is to: MCQ with Answer and Explanation

Question
The primary purpose of a 'Bank Reconciliation Statement' is to:
A. Reconcile the differences between the cash book and the pass book
B. Detect frauds
C. Prepare the trial balance
D. Calculate the bank balance
Answer: Option A
Solution (By JKSSB Mock Tests)
A BRS is prepared to identify and explain the reasons for the difference between the bank balance as per the cash book and the pass book.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
Under the Income Tax Act 1961, the year in which income is earned is called the:
A. Financial Year
B. Assessment Year
C. Previous Year
D. Accounting Year
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Correct Answer: Option C

Explanation:
The Previous Year is the financial year in which the income is earned, which is assessed to tax in the immediately following Assessment Year.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which of the following is a recent development in accounting?
A. Handwritten journals
B. Manual ledger posting
C. Paper vouchers
D. Blockchain-based triple-entry accounting
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Correct Answer: Option D

Explanation:
Blockchain is an emerging technology enabling triple-entry accounting, enhancing transparency and security.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Interest on capital is calculated on:
A. Average capital
B. Capital at the end of the year
C. Opening capital (with adjustments for additional capital and drawings if specified)
D. Capital introduced initially only
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Correct Answer: Option C

Explanation:
Interest is computed on the opening capital, and if the deed provides, adjustments for additions/withdrawals during the year.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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