Accounts mcq

What is the main purpose of preparing a bank reconciliation statement?

• (a) To know the bank balance
• (b) To know the balance of the bank statement
• (c) To correct the cash book
• (d) To identify causes of difference between cash book and bank statement

Bank reconciliation statement compares a bank statement with _________.

• (a) Cash payment journal
• (b) Cash receipt journal
• (c) Financial statements
• (d) Cash book

Unfavorable bank balances mean ______.

• (a) Credit balance in the cash book
• (b) Debit balance in the passbook
• (c) Debit balance in the cash book
• (d) Favourable balance in the cash book

The main objective of depreciation is

• (a) To show the previous profit
• (b) To calculate net profit
• (c) To reduce tax
• (d) To satisfy the tax department

Depreciation is generated due to

• (a) Increase in the value of liability
• (b) Decrease in capital
• (c) Wear and tear
• (d) Decrease in the value of assets

_________ is a permanent decline in the value of an asset. The gradual decrease both in the value and usefulness

• a.Rectification of errors
• b.Depreciation
• c.BRS
• d.none

Under this method depreciation is charged evenly every year throughout life of the asset

• a.Straight line method
• b.Diminishing method
• c.Original cost method
• d. Both a & c

Details of customer account are supplied to customers by the bank in the form of a __________

• a.Bank statement
• b.cash book
• c.pass book
• d.both a & c

Preparation of BRS

• a.Balance shown by the cash book and pass book
• b.All the debits and credits shown in the cash book
• c.the balance shown by the cash book or pass book can be taken as starting balance
• d. All of these

__________ is referred to as the procedure of receiving mistakes that are made during the entry of transaction

• a.Depreciation
• b.Rectification of errors
• c.BRS
• d.none of above