In the journal, 'L.F.' stands for: MCQ with Answer and Explanation
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Question #1
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While preparing a BRS, starting from the overdraft as per Cash Book, a cheque deposited but dishonoured, already recorded in Cash Book but not in Pass Book, will be:
Correct Answer: Option B
Explanation:
Overdraft as per Cash Book means negative balance. Dishonoured cheque was credited in Cash Book, increasing (debit) balance, but actually bank didn't credit. So to reconcile to Pass Book overdraft, we need to reverse that effect: deduct from overdraft in Cash Book (i.e., make it more negative). So deducted.
Overdraft as per Cash Book means negative balance. Dishonoured cheque was credited in Cash Book, increasing (debit) balance, but actually bank didn't credit. So to reconcile to Pass Book overdraft, we need to reverse that effect: deduct from overdraft in Cash Book (i.e., make it more negative). So deducted.
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Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The term 'Prepaid Expense' is treated as:
Correct Answer: Option D
Explanation:
Prepaid expenses are treated as current assets because they represent future economic benefits for which payment has already been made.
Prepaid expenses are treated as current assets because they represent future economic benefits for which payment has already been made.
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Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The 'Concept of OCI' (Other Comprehensive Income) was introduced to:
Correct Answer: Option A
Explanation:
OCI captures unrealised gains/losses and re-measurements not routed through P&L.
OCI captures unrealised gains/losses and re-measurements not routed through P&L.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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