Verification of assets primarily ensures: MCQ with Answer and Explanation

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Verification of assets primarily ensures:

A. Arithmetical accuracy

B. Detection of minor cash thefts

C. Existence, ownership, and correct valuation

D. Timely payment to creditors

Answer: Option C

Solution (By JKSSB Mock Tests)

Verification goes beyond vouching; it involves physically confirming the existence, legal ownership, possession, and proper valuation of assets.

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

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Question #1

According to the Indian Financial System, 'Repo Rate' is the rate at which:

A. RBI borrows from commercial banks

B. Commercial banks lend to the public

C. RBI lends short-term funds to commercial banks

D. Banks lend to each other overnight

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Correct Answer: Option C

Explanation:
The Repurchase (Repo) rate is the rate at which the RBI lends money to commercial banks to manage short-term liquidity.

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

Question #2

The 'Atal Pension Yojana' (APY) is focused on:

A. Unorganised sector workers, providing guaranteed pension

B. Only government employees

C. Corporate employees

D. High-income group

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Correct Answer: Option A

Explanation:
APY provides a defined pension for subscribers in the unorganised sector.

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Question #3

A Cash Book serves the purpose of:

A. A Ledger only

B. A Journal only

C. A Trial Balance

D. Both Journal and Ledger

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Correct Answer: Option D

Explanation:
The cash book acts as a journal because transactions are recorded chronologically, and as a ledger because it contains the cash account balance.

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

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