When starting a BRS with a debit balance as per the Cash Book, cheques issued but not yet presented for payment should be: MCQ with Answer and Explanation

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When starting a BRS with a debit balance as per the Cash Book, cheques issued but not yet presented for payment should be:

A. Deducted

B. Added

C. Divided

D. Ignored

Answer: Option B

Solution (By JKSSB Mock Tests)

These cheques decreased the cash book balance but not the pass book. To match the pass book, they must be added back.

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

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Question #1

PFMS stands for:

A. Public Fund Monitoring System

B. Private Financial Management Scheme

C. Public Financial Management System

D. Public Finance and Monetary System

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Correct Answer: Option C

Explanation:
PFMS is the Public Financial Management System administered by the Department of Expenditure, Ministry of Finance, Government of India.

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

Question #2

S1: Zero-Based Budgeting (ZBB) starts with a zero base for every new period. S2: Flexible Budget is prepared for a single level of activity. Which statement(s) is/are correct?

A. Both S1 and S2

B. S2 only

C. Neither S1 nor S2

D. S1 only

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Correct Answer: Option D

Explanation:
ZBB requires justifying all expenses from scratch (zero base) for each period. A Flexible Budget is designed to change with different levels of activity, not a single level (which is a Fixed Budget). S1 is correct, S2 is incorrect.

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Question #3

The 'Independence' of auditor means:

A. Auditor can hold shares in the client company

B. Auditor can take loan from client

C. Auditor is a relative of management

D. Auditor is free from any influence that could compromise professional judgment

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Correct Answer: Option D

Explanation:
Independence in mind and appearance is fundamental to audit.

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

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