The 'Section 269ST' prohibits: MCQ with Answer and Explanation

The 'Section 269ST' prohibits:

A. Receipt of ₹2 lakh or more in cash from a person in a day or for a single transaction or related transactions

B. Cash payment above ₹10,000

C. All digital payments

D. All cash transactions

Answer: Option A

Section 269ST restricts cash receipt of ₹2 lakh or more.

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

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Question #1 Report Error

Deferred revenue expenditure is written off over:

A. Immediately in the year of incurrence

B. One year

C. Never

D. A number of years over which benefit is expected

Correct Answer: Option D

Explanation:
Deferred revenue expenditure like heavy advertisement is written off over a period of benefit, typically 3-5 years.

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

Question #2 Report Error

Accounting by Non-Profit Organizations (NPOs) usually revolves around which system?

A. Social Accounting

B. Responsibility Accounting

C. Fund Based Accounting

D. Standard Costing

Correct Answer: Option C

Explanation:
NPOs use fund-based accounting where resources are categorized into specific funds based on restrictions placed by donors.

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

Question #3 Report Error

The point at which Total Revenue equals Total Cost is known as:

A. Shut-down Point

B. Maximum Profit Point

C. Margin of Safety

D. Break-Even Point

Correct Answer: Option D

Explanation:
At the break-even point, a business makes neither a profit nor a loss (Total Revenue = Total Costs).

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