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

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The primary purpose of a 'Bank Reconciliation Statement' is to:

A. Detect frauds

B. Calculate the bank balance

C. Prepare the trial balance

D. Reconcile the differences between the cash book and the pass book

Answer: Option D

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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Question #1

A social audit report is:

A. Legally mandatory for all companies

B. Voluntary or mandated by specific statutes like Mahatma Gandhi NREGA

C. Conducted by the Comptroller and Auditor General only

D. Part of tax audit

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Correct Answer: Option B

Explanation:
Social audit is mandated for certain government schemes (e.g., MGNREGA) and may be voluntary for others. It is not universally mandatory for all companies.

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

Question #2

The 'Zero-Rated Supply' under GST includes:

A. Exports and supplies to SEZ

B. All supplies

C. Nil-rated supplies

D. Exempt supplies

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Correct Answer: Option A

Explanation:
Zero-rated supplies attract 0% GST, and input tax credit is available.

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

Question #3

Which of the following is an example of a contingent liability?

A. Sundry Creditors

B. Bills Receivable discounted

C. Outstanding salaries

D. Bills Payable

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Correct Answer: Option B

Explanation:
Bills receivable discounted is a contingent liability because the firm is only liable to pay the bank if the drawee fails to pay the bill on maturity.

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

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