In a BRS, when a cheque is issued but not presented, the cash book balance is: MCQ with Answer and Explanation

Question Report Error

In a BRS, when a cheque is issued but not presented, the cash book balance is:

A. Unaffected

B. Higher than the pass book balance

C. Lower than the pass book balance

D. Equal to the pass book balance

Answer: Option C

Solution (By JKExamLibrary)

Issuing a cheque immediately reduces the cash book balance, but the bank balance (pass book) remains high until the cheque is cleared.

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

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

Social Accounting primarily benefits:

A. Shareholders only

B. Competitors

C. Government only

D. Society at large by disclosing social costs and benefits

View Answer & Solution Discuss

Correct Answer: Option D

Explanation:
It provides information to stakeholders about the social impact of an entity.

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

Question #2 Report Error

The petty cash book is balanced:

A. At the end of the month

B. Daily

C. At the end of the year

D. When it is replenished

View Answer & Solution Discuss

Correct Answer: Option D

Explanation:
Under imprest system, petty cash book is closed when cash is replenished, not periodically.

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

Question #3 Report Error

The 'Investment in Associates' (Ind AS 28) is accounted for using:

A. Equity method

B. Fair value through profit or loss

C. Cost method

D. Consolidation

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
Equity method is applied for associates, except when held for sale.

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

Explore All Accountancy and Book Keeping MCQs