The 'Voucher' approach in accounting helps to: MCQ with Answer and Explanation

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The 'Voucher' approach in accounting helps to:

A. Prepare trial balance

B. Ensure documentation and authorisation of transactions

C. Simplify journal entries

D. Compute tax

Answer: Option B

Solution (By JKExamLibrary)

Voucher system ensures that every transaction is supported by documentary evidence and approval.

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

The 'Deferred Tax' on account of timing differences is calculated using:

A. Average tax rate

B. Minimum Alternate Tax rate

C. Current year tax rate

D. Enacted tax rates that will apply in the periods when the differences reverse

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Correct Answer: Option D

Explanation:
Deferred tax is measured using tax rates that have been enacted or substantively enacted by the reporting date.

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

Question #2 Report Error

On dissolution of a firm, an asset taken over by a partner is credited to:

A. Realisation Account

B. Partner's Capital Account

C. Bank Account

D. Asset Account

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Correct Answer: Option A

Explanation:
Asset taken over is recorded: Partner's Capital A/c Dr., To Realisation A/c. So Realisation A/c is credited.

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

Question #3 Report Error

Assertion (A): In a bank reconciliation statement, if we start with the overdraft balance as per the Cash Book, cheques deposited but not credited by the bank will be added. Reason (R): Cheques deposited but not credited increase the bank balance as per the pass book, but not the cash book. Choose the correct option.

A. Both A and R are true and R is the correct explanation of A

B. A is false but R is true

C. A is true but R is false

D. Both A and R are true but R is NOT the correct explanation of A

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Correct Answer: Option C

Explanation:
A is false. If starting with an overdraft as per the Cash Book, cheques deposited but not credited (which increase the pass book balance) must be deducted to increase the overdraft amount, not added. R is true as a standalone statement.

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

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