The 'Prepaid Insurance' is adjusted by: MCQ with Answer and Explanation

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The 'Prepaid Insurance' is adjusted by:

A. Ignore

B. Debit Prepaid Insurance A/c, Credit Insurance A/c

C. Debit Cash A/c, Credit Insurance A/c

D. Debit Insurance A/c, Credit Prepaid Insurance A/c

Answer: Option B

Solution (By JKExamLibrary)

Prepaid insurance is an asset, so Prepaid Insurance A/c Dr. To Insurance A/c.

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

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The 'Updated Return' under Income Tax (Section 139(8A)) can be filed within:

A. 3 years

B. No time limit

C. 2 years from end of relevant assessment year

D. 1 year from end of relevant assessment year

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Correct Answer: Option C

Explanation:
Updated return can be filed within 24 months from the end of the relevant assessment year, subject to conditions.

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When preparing BRS from Cash Book balance (Dr.), a cheque issued but not yet presented should be:

A. Added

B. Adjusted in capital

C. Deducted

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Correct Answer: Option C

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The 'Social Welfare Surcharge' is levied on:

A. GST

B. Basic customs duty

C. Income tax

D. All taxes

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Correct Answer: Option B

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Social welfare surcharge is levied on the aggregate of duties of customs, except certain items.

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

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