Voucher approach implies that every financial transaction must be supported by: MCQ with Answer and Explanation

Question

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Voucher approach implies that every financial transaction must be supported by:

A. A trial balance

B. Verbal approval

C. An audit report

D. Documentary evidence

Answer: Option D

Solution (By JKSSB Mock Tests)

The essence of the voucher system is to ensure no entry is made in the books without an authentic, authorized documentary evidence (voucher).

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

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Question #1

The accounting treatment for loss by fire of uninsured goods is:

A. Debit Profit & Loss A/c

B. Debit Trading A/c

C. Debit Capital A/c

D. No entry

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Correct Answer: Option A

Explanation:
Loss by fire is abnormal loss, charged to Profit & Loss Account, not to Trading Account.

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

Question #2

Debentures are shown in Balance Sheet under:

A. Share capital

B. Long-term borrowings

C. Current liabilities

D. Reserves and surplus

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Correct Answer: Option B

Explanation:
Debentures are long-term borrowings unless they are due within 12 months, then current liabilities.

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

Question #3

The term 'Imprest System' is related to:

A. Sales book

B. Purchase book

C. Petty cash book

D. Cash book

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Correct Answer: Option C

Explanation:
Under imprest system, a fixed amount of petty cash is maintained and reimbursed periodically.

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

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