The 'Voucher' approach in accounting helps to: MCQ with Answer and Explanation

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The 'Voucher' approach in accounting helps to:

A. Prepare trial balance

B. Compute tax

C. Ensure documentation and authorisation of transactions

D. Simplify journal entries

Answer: Option C

Solution (By JKSSB Mock Tests)

Voucher system ensures that every transaction is supported by documentary evidence and approval.

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

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Question #1

PFMS is managed and implemented by:

A. Comptroller and Auditor General (CAG)

B. Controller General of Accounts (CGA)

C. Reserve Bank of India (RBI)

D. NITI Aayog

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Correct Answer: Option B

Explanation:
The Controller General of Accounts (CGA) under the Ministry of Finance administers the PFMS portal.

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

Question #2

Which ratio measures the short-term solvency of a firm?

A. Current Ratio

B. Proprietary Ratio

C. Debt-Equity Ratio

D. Interest Coverage Ratio

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Correct Answer: Option A

Explanation:
The Current Ratio compares current assets to current liabilities, indicating the firm's ability to meet its short-term obligations.

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

Question #3

Which of the following is an intangible asset?

A. Goodwill

B. Machinery

C. Building

D. Furniture

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Correct Answer: Option A

Explanation:
Goodwill is an intangible asset because it lacks physical substance but adds value to the business.

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

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