Which of the following is a feature of cash-based accounting? MCQ with Answer and Explanation

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Which of the following is a feature of cash-based accounting?

A. Records credit transactions

B. Provides a true and fair view of financial position

C. Simple to maintain

D. Recognizes revenue when earned

Answer: Option C

Solution (By JKSSB Mock Tests)

Cash-based accounting is very simple to maintain as it only records actual cash inflows and outflows, ignoring credit transactions and accruals.

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

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Question #1

The 'Sabka Vishwas' scheme for indirect taxes was for:

A. Customs only

B. Income tax disputes

C. GST disputes

D. Resolution of legacy disputes under excise and service tax

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Correct Answer: Option D

Explanation:
It was a dispute resolution scheme for pre-GST indirect tax matters.

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Question #2

The 'Goods and Services Tax Appellate Tribunal' (GSTAT) deals with:

A. GST disputes

B. Income tax appeals

C. Company matters

D. Customs matters

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Correct Answer: Option A

Explanation:
GSTAT is the appellate authority for GST disputes.

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Question #3

In cost accounting, fixed cost per unit:

A. Remains constant

B. Increases with increase in production

C. Decreases with increase in production

D. Fluctuates arbitrarily

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Correct Answer: Option C

Explanation:
Total fixed cost remains constant within a relevant range, so per unit fixed cost decreases as production volume increases.

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

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