Commerce Accountancy ยท General Awareness

Banking and Cash Transactions

990 Questions

This collection covers essential concepts related to banking and cash transactions. It includes questions on outstanding cheques, petty cash, bank reconciliations, and negotiable instruments. These topics are highly relevant for accounting exams and test practical financial knowledge.

Bank reconciliation statementsCheques and noting chargesPetty cash usageNegotiable Instruments ActCash book entriesStamp Duty Act

Banking and Cash Transactions Questions

Multiple choice organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

Which of the following statement about negotiable instruments is false?

  1. Once a bank certifies, a cheque, the bank must honor it

  2. When a negotiable instrument is transferred to a holder in due course, he is entitled to enforce the instrument.

  3. Earlier more bills of exchange were used.

  4. An instrument can be negotiated even if it is conditional on some future event, or if the amount to be paid will be determined at some future date.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An instrument can be negotiated even if it is conditional on some future event, or if the amount to be paid will be determined at some future date- this is a false statement about the negotiable instrument. Negotiable instruments refers to the document which guarantees payment for specific amount of money.

Multiple choice

What is the envelope system?

  1. A budgeting method where you put cash in envelopes for different categories of expenses.

  2. A budgeting method where you use a debit card for all of your expenses.

  3. A budgeting method where you use a credit card for all of your expenses.

  4. None of the above.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The envelope system is a budgeting method where you put cash in envelopes for different categories of expenses.

Multiple choice

In some cultures, a ritual called 'counting the money' is performed after a successful business transaction. What is the purpose of this ceremony?

  1. To ensure accuracy and prevent errors in the transaction

  2. To symbolize the transfer of wealth and prosperity

  3. To bring good luck and fortune to the business

  4. To express gratitude for the successful transaction
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Counting the money after a successful business transaction is a ritual performed to ensure accuracy and prevent errors in the transaction. It is also believed to bring good luck and fortune to the business.

Multiple choice

What is the proper way to tip the room service staff?

  1. In cash

  2. On a credit card

  3. In a sealed envelope

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

There is no one right way to tip the room service staff. You can tip in cash, on a credit card, or in a sealed envelope. The amount you tip should be based on the level of service you received.

Multiple choice

What was the primary form of insurance during the Vedic period?

  1. Crop insurance

  2. Life insurance

  3. Health insurance

  4. Property insurance
Reveal answer Fill a bubble to check yourself
Correct answer
Explanation

There is no evidence of any formal insurance system during the Vedic period.

Multiple choice

Which of the following is not a permissible mode of payment for the acquisition of immovable property in India by a person resident outside India?

  1. Foreign currency

  2. Indian rupees

  3. Demand draft

  4. Traveler's cheque
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

As per FEMA regulations, foreign currency is not a permissible mode of payment for the acquisition of immovable property in India by a person resident outside India.

Multiple choice

Which of the following is not a permissible mode of payment for the acquisition of immovable property in India by a foreign citizen?

  1. Foreign currency

  2. Indian rupees

  3. Demand draft

  4. Traveler's cheque
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

As per FEMA regulations, foreign currency is not a permissible mode of payment for the acquisition of immovable property in India by a foreign citizen.

Multiple choice

Which of the following is not a permissible mode of payment for the acquisition of immovable property in India by a PIO?

  1. Foreign currency

  2. Indian rupees

  3. Demand draft

  4. Traveler's cheque
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

As per FEMA regulations, foreign currency is not a permissible mode of payment for the acquisition of immovable property in India by a PIO.

Multiple choice

Which of the following is NOT a common method of expense reimbursement?

  1. Direct deposit

  2. Company check

  3. Travel card

  4. Cash
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cash is generally not used as a method of expense reimbursement due to security and tracking concerns.

Multiple choice

What is the term for the process of presenting a bill to customers and collecting payment?

  1. Billing

  2. Charging

  3. Collecting

  4. Paying
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Billing is the process of presenting a bill to customers that details the food and beverages they have ordered, along with any applicable taxes and fees.

Multiple choice

What is the solution to the problem of the thief and the merchant?

  1. The thief stole half of the merchant's money.

  2. The thief stole one-third of the merchant's money.

  3. The thief stole one-fourth of the merchant's money.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The solution to the problem of the thief and the merchant is that the thief stole one-third of the merchant's money.

Multiple choice

What are the consequences of not paying Stamp Duty?

  1. The document may be declared invalid

  2. Penalties may be imposed

  3. Legal action may be taken

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Failure to pay Stamp Duty can result in various consequences, including the document being declared invalid, penalties being imposed, and legal action being taken.

Multiple choice

Which of the following is NOT a valid reason for claiming a stamp duty refund?

  1. Overpayment of stamp duty

  2. Incorrect calculation of stamp duty

  3. Cancellation of the transaction

  4. Change in the property value
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A change in the property value is not a valid reason for claiming a stamp duty refund.

Multiple choice

What is the procedure for claiming a stamp duty refund?

  1. File an application with the Stamp Duty Authority

  2. Submit the original stamped document

  3. Pay a processing fee

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

To claim a stamp duty refund, one must file an application with the Stamp Duty Authority, submit the original stamped document, and pay a processing fee.

Multiple choice

In which cases is a stamp duty refund not allowed?

  1. When the document is not properly stamped

  2. When the document is forged or altered

  3. When the transaction is illegal

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A stamp duty refund is not allowed when the document is not properly stamped, when the document is forged or altered, or when the transaction is illegal.