The 'Receipts and Payments Account' is prepared by: MCQ with Answer and Explanation

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The 'Receipts and Payments Account' is prepared by:

A. Partnership firms

B. Companies

C. Non-profit organizations

D. Trading concerns

Answer: Option C

Solution (By JKSSB Mock Tests)

Non-profit organizations prepare Receipts and Payments Account as a summary of cash transactions.

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

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Question #1

The Companies Act, 2013 mandates that all companies must maintain their books of accounts under the:

A. Hybrid System

B. Accrual (Mercantile) System

C. Cash System

D. Single Entry System

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Correct Answer: Option B

Explanation:
Section 128 of the Companies Act, 2013 strictly requires companies to maintain accounts on an accrual basis and according to the double-entry system.

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

Question #2

The term 'Debtors' represent:

A. Amounts owed to the business by customers

B. Amounts owed by the business

C. Bills payable

D. Outstanding expenses

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Correct Answer: Option A

Explanation:
Debtors are persons/entities who owe money to the business for goods/services provided on credit.

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

Question #3

The 'Banking Cash Transaction Tax' (BCTT) was a:

A. TDS

B. GST component

C. Indirect tax

D. Direct tax on cash withdrawals above certain limit (now abolished)

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Correct Answer: Option D

Explanation:
BCTT was a direct tax on cash withdrawals from banks, abolished in 2009.

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

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