The term 'Outstanding Expense' is treated as: MCQ with Answer and Explanation

Question Report Error

The term 'Outstanding Expense' is treated as:

A. An income

B. A liability

C. An asset

D. A gain

Answer: Option B

Solution (By JKExamLibrary)

Outstanding expenses are expenses incurred but not yet paid, making them a current liability for the business.

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

S1: Under GST, the 'E-way bill' is required for the movement of goods where the consignment value exceeds ₹50,000. S2: The E-way bill is generated on the common portal by the registered person before the commencement of the movement of goods. Which statement(s) is/are correct?

A. S2 only

B. Both S1 and S2

C. S1 only

D. Neither S1 nor S2

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Correct Answer: Option B

Explanation:
Both statements are correct. Rule 138 of the CGST Rules mandates an e-way bill for goods valued over ₹50,000, and it must be generated by the supplier/recipient before the goods are moved.

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

Question #2 Report Error

S1: A Receipt Voucher is prepared for cash receipts. S2: A Payment Voucher is prepared for cash payments. Which statement(s) is/are correct?

A. Both S1 and S2

B. S2 only

C. Neither S1 nor S2

D. S1 only

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Correct Answer: Option A

Explanation:
In the voucher entry system, a Receipt Voucher is used to record all cash and bank receipts. A Payment Voucher is used to record all cash and bank payments. Both statements are correct.

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