Which of the following transactions leaves the total of the accounting equation unchanged? MCQ with Answer and Explanation

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

A. Introduction of fresh capital

B. Purchasing machinery on credit

C. Collection of cash from debtors

D. Paying electricity bill

Answer: Option C

Solution (By JKSSB Mock Tests)

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

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A reserve created out of normal operating profits is called a:

A. Specific Reserve

B. Revenue Reserve

C. Secret Reserve

D. Capital Reserve

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Correct Answer: Option B

Explanation:
Revenue reserves are built from day-to-day operational net profits and can be utilized for distributing dividends.

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Question #2

The 'Gross Profit' is transferred to:

A. Trading Account debit

B. Profit and Loss Account credit

C. Capital Account

D. Balance Sheet liability

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Correct Answer: Option B

Explanation:
Gross profit is credited to Profit & Loss Account.

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Question #3

ESG Reporting focuses on an organization's performance regarding:

A. Environmental, Social, and Governance factors

B. Equity, Shares, and Gearing

C. Earnings, Sales, and Growth

D. External, Strategic, and Global operations

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Correct Answer: Option A

Explanation:
ESG reporting discloses a company's non-financial impacts, assessing its sustainability, societal impact, and corporate governance practices.

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