Under single entry system, it is often difficult to prepare: MCQ with Answer and Explanation

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Under single entry system, it is often difficult to prepare:

A. Cash account

B. Profit and Loss Account and Balance Sheet

C. Debtors list

D. Personal accounts

Answer: Option B

Solution (By JKSSB Mock Tests)

Because real and nominal accounts are incomplete, final accounts cannot be prepared directly.

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

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Question #1

A change in depreciation method is treated as:

A. Change in accounting policy

B. Extraordinary item

C. Error

D. Prior period item

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Correct Answer: Option A

Explanation:
Change in depreciation method is a change in accounting policy, requiring retrospective application as per AS 5.

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

Question #2

A: A Ledger account is opened for each type of asset, liability, equity, income, and expense. R: The Ledger is the principal book of accounts. Choose the correct option.

A. Both A and R are true but R is NOT the correct explanation of A

B. A is false but R is true

C. Both A and R are true and R is the correct explanation of A

D. A is true but R is false

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Correct Answer: Option A

Explanation:
A ledger account is indeed opened for every element of the financial statements to classify and summarize transactions. It is the principal book of accounts. Both are true, but R doesn't explain *why* accounts are opened for each element.

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

Question #3

Input Tax Credit on motor vehicles is blocked under GST except when used for:

A. Personal use

B. Further supply of vehicles or transportation of goods/passengers

C. All cases

D. Office commuting

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Correct Answer: Option B

Explanation:
ITC on motor vehicles is generally blocked, but allowed if used for specified purposes like transport services, further supply, etc.

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

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