The foundational principle of Double Entry Bookkeeping is: MCQ with Answer and Explanation

Question Report Error

The foundational principle of Double Entry Bookkeeping is:

A. Every debit has a corresponding credit

B. Cash received must equal cash paid

C. Expenses must equal incomes

D. Assets must be greater than liabilities

Answer: Option A

Solution (By JKExamLibrary)

Double entry bookkeeping relies on the dual aspect concept, meaning every transaction affects at least two accounts with equal debits and credits.

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

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The 'Composition Scheme' under GST is not available to a:

A. Manufacturer of goods

B. Restaurant not serving alcohol

C. Trader of goods

D. Service provider (other than restaurant) with aggregate turnover exceeding ₹50 lakh

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Correct Answer: Option D

Explanation:
Composition scheme for services is restricted. The general scheme for goods allows manufacturers and traders.

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

Question #2 Report Error

The 'Budget' is presented in Parliament by:

A. President

B. Prime Minister

C. Finance Minister

D. Speaker

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Correct Answer: Option C

Explanation:
The Union Budget is presented by the Finance Minister.

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Question #3 Report Error

In Social Cost Benefit Analysis (SCBA), 'Shadow Pricing' is used to:

A. Calculate depreciation of intangibles

B. Assign a true economic value to goods when market prices are distorted or non-existent

C. Price products below cost to gain market share

D. Hide illicit profits

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Correct Answer: Option B

Explanation:
Shadow prices reflect the true opportunity cost of resources to society, used when market prices fail to reflect this true cost.

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

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