The petty cash book is balanced: MCQ with Answer and Explanation
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Question #1
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A 'Letter of Credit' is a:
Correct Answer: Option C
Explanation:
Letter of credit is a bank's commitment to pay the seller on behalf of buyer, reducing risk.
Letter of credit is a bank's commitment to pay the seller on behalf of buyer, reducing risk.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A company issues 10% debentures of ₹100 each at a discount of 5%, redeemable at a premium of 10%. What is the total loss on issue per debenture to be written off over the life of the debenture?
Correct Answer: Option C
Explanation:
Loss on issue = Discount on issue + Premium on redemption = ₹5 + ₹10 = ₹15 per debenture. This total loss is written off over the tenure of the debentures.
Loss on issue = Discount on issue + Premium on redemption = ₹5 + ₹10 = ₹15 per debenture. This total loss is written off over the tenure of the debentures.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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In financial management, the 'Time Value of Money' concept implies that:
Correct Answer: Option B
Explanation:
The time value of money states that a sum of money is worth more now than the same sum will be at a future date due to its earning capacity.
The time value of money states that a sum of money is worth more now than the same sum will be at a future date due to its earning capacity.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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