Accounting Mcqs

Page No. 39

Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?


aBank charges will be debited in cash book


bBank charges will be added to cash book balance


cBank charges will be credited in cash book


dBank charges need no adjustment in cash book



Bank reconciliation statement is prepared by____________?


aAccountant of the business


bManager of the business


cController of the bank


d Accountant of the bank



A check returned by bank marked “NSF” means that:


aBank can’t verify your identity


bThere are not sufficient funds in your account


cCheck has been forged


dCheck can’t be cashed being illegal



A cash deposit made by business appears on the bank statement as _______ balance?


aDebit


bCredit


cExpenses


dLiability


View Answer Credit

Accommodation bills are generally for?


aGenuine trade reasons


bFor mutual financial accommodation


cTo help augment money supply


dAll the three



X draws a Bill of Exchange on Y for 10,000 on 1-1-2013 for 3 months. The due date of the bill will be_________?


a4-4-2013


b3-4-2013


c1-4-2013


d31-3-2013


View Answer 4-4-2013

Which of these are not required in a promissory note?


aAcceptance


bUnconditional promise to pay


cProperly stamped


dPayment to be made legal currency


View Answer Acceptance

A foreign bill of exchange is generally drawn up in___________?


aTriplicate


bDuplicate


cSingle


dQuadruplicate


View Answer Triplicate

Which of these is not an essential feature of a bill of exchange?


aUnconditional


bCertainty of amount


cIn writing


dAmount to be paid in foreign currency



Negotiable Instrument Act was enacted in_________?


a1981


b1881


c1871


d2001


View Answer 1881

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