Which of the following statements regarding the Accounting Equation is INCORRECT? MCQ with Answer and Explanation
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Question #1
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If BRS is prepared starting with a credit balance as per Cash Book (overdraft), interest allowed by the bank will be:
Correct Answer: Option C
Explanation:
Interest allowed reduces the actual bank overdraft (Pass book). To make the Cash book overdraft match this lower figure, it must be deducted.
Interest allowed reduces the actual bank overdraft (Pass book). To make the Cash book overdraft match this lower figure, it must be deducted.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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S1: Income Tax is a direct tax. S2: Income Tax is levied by the State Governments in India. Which statement(s) is/are correct?
Correct Answer: Option B
Explanation:
Income Tax is a direct tax levied on the income of individuals and entities. However, it is levied and collected by the Central Government, not the State Governments. S1 is correct, S2 is incorrect.
Income Tax is a direct tax levied on the income of individuals and entities. However, it is levied and collected by the Central Government, not the State Governments. S1 is correct, S2 is incorrect.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Under single entry system, which of the following is usually not maintained?
Correct Answer: Option C
Explanation:
Single entry often lacks complete double entry; real and nominal accounts may not be fully maintained.
Single entry often lacks complete double entry; real and nominal accounts may not be fully maintained.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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