Which of the following is a 'Non-Cash Expense'? MCQ with Answer and Explanation

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Which of the following is a 'Non-Cash Expense'?

A. Depreciation

B. Rent paid

C. Commission paid

D. Salaries paid

Answer: Option A

Solution (By JKSSB Mock Tests)

Depreciation is a non-cash expense as there is no outflow of cash.

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

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Question #1

Which of the following is a direct tax in India?

A. Customs duty

B. Excise duty on liquor

C. Corporate tax

D. Goods and Services Tax

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Correct Answer: Option C

Explanation:
Corporate tax is levied directly on company profits, thus a direct tax.

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Question #2

The accounting standard AS-9 primarily deals with:

A. Revenue Recognition

B. Depreciation Accounting

C. Inventory Valuation

D. Accounting for Fixed Assets

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Correct Answer: Option A

Explanation:
AS-9 issued by ICAI lays down the conditions and guidelines for recognizing revenue arising from ordinary business activities.

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Question #3

Financial Management aims at 'Wealth Maximization', which means maximizing:

A. Market value per share

B. Sales volume

C. Book value of assets

D. Net profit after tax

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Correct Answer: Option A

Explanation:
Wealth maximization implies increasing the net present value of the firm, reflected in the increased market price of its equity shares.

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

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