A Cash Book serves the purpose of: MCQ with Answer and Explanation
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Question #1
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The 'Customs Act, 1962' empowers the Central Government to:
Correct Answer: Option C
Explanation:
Customs Act governs import and export of goods and levy of customs duties.
Customs Act governs import and export of goods and levy of customs duties.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A company's current ratio is 2:1. If it purchases goods on credit for ₹1,00,000, what will be the effect on the current ratio?
Correct Answer: Option B
Explanation:
When the current ratio is greater than 1 (e.g., 2:1), an equal increase in current assets and current liabilities (like credit purchase) will result in a decrease in the ratio.
When the current ratio is greater than 1 (e.g., 2:1), an equal increase in current assets and current liabilities (like credit purchase) will result in a decrease in the ratio.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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S1: Depreciation is charged on all fixed assets except land. S2: Depreciation is charged on land if it is a freehold land. Which statement(s) is/are correct?
Correct Answer: Option C
Explanation:
Depreciation is charged on all depreciable fixed assets. Land (specifically freehold land) has an unlimited useful life and is not depreciated. Leasehold land is depreciated over the lease term. S1 is correct, S2 is incorrect.
Depreciation is charged on all depreciable fixed assets. Land (specifically freehold land) has an unlimited useful life and is not depreciated. Leasehold land is depreciated over the lease term. S1 is correct, S2 is incorrect.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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