Under Schedule III of the Companies Act 2013, 'Trade Receivables' are classified under: MCQ with Answer and Explanation

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Under Schedule III of the Companies Act 2013, 'Trade Receivables' are classified under:

A. Cash and Cash Equivalents

B. Current Assets

C. Non-Current Assets

D. Inventories

Answer: Option B

Solution (By JKSSB Mock Tests)

Trade receivables (Debtors and Bills Receivable) expected to be realized within 12 months are classified as Current Assets.

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

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Question #1

A 'Bill Receivable Book' records:

A. Bills payable

B. All bills

C. Bills accepted by business

D. Bills drawn by the business and accepted by debtors

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Correct Answer: Option D

Explanation:
Bills Receivable Book records all bills of exchange drawn on debtors and accepted by them.

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Question #2

The 'Presumptive Taxation' under Section 44AD is at 8% of turnover for:

A. Companies

B. Eligible businesses with turnover up to ₹2 crore

C. All businesses

D. LLPs

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Correct Answer: Option B

Explanation:
Section 44AD applies to resident individuals/HUFs/firms (except LLP) carrying on eligible business.

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Question #3

The main purpose of preparing a 'Ledger' is:

A. To record transactions chronologically

B. To ascertain profit or loss

C. To detect errors

D. To classify and summarise transactions account-wise

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Correct Answer: Option D

Explanation:
Ledger is the principal book where all transactions are classified into various accounts.

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

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