Which of the following statements about a 'Voucher' is incorrect? MCQ with Answer and Explanation

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Which of the following statements about a 'Voucher' is incorrect?

A. A journal voucher is used for recording depreciation.

B. A voucher is a documentary evidence of a transaction.

C. A credit voucher is used for recording non-cash transactions.

D. A debit voucher is prepared for cash payments.

Answer: Option C

Solution (By JKSSB Mock Tests)

Credit voucher is used for cash receipts, not non-cash transactions. Non-cash are recorded via journal/transfer vouchers.

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

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Question #1

Which of the following transactions leaves the total of the accounting equation unchanged?

A. Purchasing machinery on credit

B. Collection of cash from debtors

C. Introduction of fresh capital

D. Paying electricity bill

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Correct Answer: Option B

Explanation:
Collecting cash from debtors increases one asset (Cash) and decreases another (Debtors) by the same amount, leaving total assets unchanged.

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

Question #2

The term 'Trading on Equity' refers to:

A. Using borrowed funds (debt) to magnify the return on equity

B. Distributing dividends from reserves

C. Issuing more equity shares

D. Trading equity shares in the stock market

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Correct Answer: Option A

Explanation:
Trading on equity (financial leverage) means using fixed-cost debt to increase the earnings per share for equity shareholders when return on assets exceeds interest costs.

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

Question #3

As per the concept of Social Accounting, the entity should account for:

A. Financial performance alone

B. Only economic transactions

C. Government levies only

D. Social costs and benefits

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Correct Answer: Option D

Explanation:
Social Accounting involves measuring and reporting the social and environmental impact of an entity's activities.

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

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