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. Debtors list

C. Personal accounts

D. Profit and Loss Account and Balance Sheet

Answer: Option D

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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Practice More Accountancy and Book Keeping Questions

Question #1

In a bank reconciliation statement, an overdraft as per the cash book will be increased by:

A. Interest allowed by bank

B. Cheques deposited but not credited

C. Cheques issued but not presented for payment

D. Direct deposit by customer

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Correct Answer: Option C

Explanation:
Cheques issued but not presented reduce the bank balance, so they are added to the overdraft balance as per the cash book to reconcile with the pass book.

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

Question #2

The 'Public Account' of India includes:

A. Tax revenues

B. Grants from foreign governments

C. Provident fund, small savings, etc.

D. Borrowings

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Correct Answer: Option C

Explanation:
Public Account holds money received for specific purposes like provident fund, small savings, etc., not belonging to government.

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

Question #3

The 'Significant Economic Presence' (SEP) concept was introduced in India to:

A. Simplify tax

B. Tax non-resident digital companies based on economic engagement

C. Encourage FDI

D. Reduce tax on foreigners

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Correct Answer: Option B

Explanation:
SEP deems a business connection if a non-resident has significant economic presence, even without physical presence.

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

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