The audit conducted continuously throughout the year is known as: MCQ with Answer and Explanation
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Question #1
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A: When a bill is discounted, the bank charges a fee called discounting charges. R: Discounting charges are debited to the Discount Account. Choose the correct option.
Correct Answer: Option A
Explanation:
When a bill is discounted, the bank deducts a fee (discounting charges) for providing early cash. This fee is a financial expense and is debited to the Discount Account. Both are true, but R doesn't explain *why* the bank charges it (which is for providing early funds).
When a bill is discounted, the bank deducts a fee (discounting charges) for providing early cash. This fee is a financial expense and is debited to the Discount Account. Both are true, but R doesn't explain *why* the bank charges it (which is for providing early funds).
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Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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In the Indian financial system, SEBI regulates:
Correct Answer: Option D
Explanation:
The Securities and Exchange Board of India (SEBI) is the regulatory body for the securities and capital markets in India.
The Securities and Exchange Board of India (SEBI) is the regulatory body for the securities and capital markets in India.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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In a cash flow statement, interest paid on debentures is classified under:
Correct Answer: Option C
Explanation:
Interest paid on debentures represents a return on capital provided by debentureholders, hence it is classified under Financing Activities.
Interest paid on debentures represents a return on capital provided by debentureholders, hence it is classified under Financing Activities.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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