Commerce Accountancy ยท General Awareness

Banking and Cash Transactions

1,011 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

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

Which of the following is a common method used to launder money through trade?

  1. Overinvoicing or underinvoicing goods to conceal the true value

  2. Using shell companies to facilitate trade transactions

  3. Shipping goods through multiple countries to obscure the origin and destination

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

Overinvoicing or underinvoicing goods to conceal the true value, using shell companies to facilitate trade transactions, and shipping goods through multiple countries to obscure the origin and destination are all common methods used to launder money through trade.

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.

Multiple choice

Can a stamp duty refund be claimed for a document that has been partially stamped?

  1. Yes

  2. No
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A stamp duty refund cannot be claimed for a document that has been partially stamped.

Multiple choice

Can a stamp duty refund be claimed for a document that has been stamped with the wrong value?

  1. Yes

  2. No
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A stamp duty refund can be claimed for a document that has been stamped with the wrong value.

Multiple choice

What is the procedure for obtaining a stamp duty refund for a document that has been stamped with the wrong value?

  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 obtain a stamp duty refund for a document that has been stamped with the wrong value, one must file an application with the Stamp Duty Authority, submit the original stamped document, and pay a processing fee.

Multiple choice

Can a stamp duty refund be claimed for a document that has been stamped in a foreign country?

  1. Yes

  2. No
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A stamp duty refund cannot be claimed for a document that has been stamped in a foreign country.

Multiple choice

What is the term for a coin that has been struck twice?

  1. Double strike

  2. Mule

  3. Overstrike

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

A double strike is a coin that has been struck twice by the dies, resulting in a misaligned or incomplete design.