The basic objective of bookkeeping is: MCQ with Answer and Explanation

Question Report Error

The basic objective of bookkeeping is:

A. To audit accounts

B. To calculate profit

C. To maintain systematic records of transactions

D. To prepare financial statements only

Answer: Option C

Solution (By JKExamLibrary)

Bookkeeping is the art of recording business transactions in a systematic manner.

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

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

A firm's 'Capital' is equal to:

A. Total assets

B. Net assets (Total assets - Outside liabilities)

C. Total liabilities

D. Fixed assets

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Correct Answer: Option B

Explanation:
Capital (owner's equity) = Total assets - Outside liabilities.

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

Question #2 Report Error

GST collected on sales is credited to:

A. Input GST Credit Account

B. Sales Account

C. Purchase Account

D. Output GST Liability Account

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Correct Answer: Option D

Explanation:
GST collected from customers is a liability to government, recorded as Output GST.

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

Question #3 Report Error

Which of the following is an indirect tax in India?

A. Income tax

B. Corporation tax

C. GST

D. Wealth tax

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Correct Answer: Option C

Explanation:
GST is an indirect tax on supply of goods and services.

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

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