While preparing a Bank Reconciliation Statement, a cheque deposited but not yet cleared is: MCQ with Answer and Explanation

Question
While preparing a Bank Reconciliation Statement, a cheque deposited but not yet cleared is:
A. Deducted from the bank statement balance
B. Added to the cash book balance
C. Deducted from the cash book balance
D. Added to the bank statement balance
Answer: Option D
Solution (By JKSSB Mock Tests)
When starting from bank statement (pass book) balance, a deposit in transit must be added because it's not yet reflected in the bank statement.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
If a person fails to link PAN with Aadhaar, the PAN becomes:
A. Suspended
B. Cancelled permanently
C. Inoperative
D. Invalid
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Correct Answer: Option C

Explanation:
Under Income Tax rules, an unlinked PAN becomes 'inoperative', preventing the filing of ITRs and inviting higher TDS.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
In the Balance Sheet, 'Patents' are shown under:
A. Fixed assets – Intangible
B. Current liabilities
C. Investments
D. Current assets
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Correct Answer: Option A

Explanation:
Patents are intangible fixed assets.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Engagement Risk' is different from audit risk; it relates to:
A. Risk of loss or injury to the auditor's professional practice from litigation, adverse publicity, etc.
B. Risk of material misstatement
C. Inherent risk
D. Detection risk
Discuss
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Correct Answer: Option A

Explanation:
Engagement risk is a business risk for the auditor.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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