Commerce Accountancy · 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

How does an EMS promote transparency and accountability in expense management?

  1. It provides a clear audit trail for all expenses

  2. It enforces expense policies and compliance

  3. It facilitates open communication between employees and managers

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

An EMS promotes transparency and accountability in expense management by providing a clear audit trail for all expenses, enforcing expense policies and compliance, and facilitating open communication between employees and managers.

Multiple choice

What is an overstrike?

  1. When a coin is struck by a die that has been used to strike another coin

  2. When a coin is struck by a die that is broken

  3. When a coin is struck by a die that is worn

  4. When a coin is struck by a die that is misaligned
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Overstrikes occur when a coin is struck by a die that has been used to strike another coin. This can result in the design of the first coin being superimposed on the design of the second coin.

Multiple choice

What is a repunched mintmark?

  1. When a mintmark is struck twice on a coin

  2. When a mintmark is struck off-center

  3. When a mintmark is struck upside down

  4. When a mintmark is struck on the wrong coin
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Repunched mintmarks occur when a mintmark is struck twice on a coin, either because the mintmark was not properly aligned or because the coin was struck twice.

Multiple choice

What is a counterstamped coin?

  1. When a coin is stamped with a mark after it is struck

  2. When a coin is struck off-center

  3. When a coin is struck upside down

  4. When a coin is struck on the wrong coin
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Counterstamped coins are coins that have been stamped with a mark after they were struck. This was often done to indicate that the coin was genuine or to change its value.

Multiple choice

Which of the following is not a valid mode of payment for imports under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000?

  1. Cash

  2. Demand Draft

  3. Letter of Credit

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

Cash is not a valid mode of payment for imports under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000. Authorized dealers are not permitted to accept cash payments for imports.

Multiple choice

Which of the following is not a valid mode of payment for import of services under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000?

  1. Cash

  2. Demand Draft

  3. Letter of Credit

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

Cash is not a valid mode of payment for import of services under the Foreign Exchange Management (Import of Goods and Services) Regulations, 2000. Authorized dealers are not permitted to accept cash payments for import of services.

Multiple choice

What are the signs of financial abuse in an elderly person?

  1. Unexplained withdrawals from bank accounts

  2. Forged checks

  3. Sudden changes in financial状況

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

Financial abuse can take many forms, including unexplained withdrawals from bank accounts, forged checks, and sudden changes in financial 状況.

Multiple choice

Which of the following is NOT a chargeable instrument under the Stamp Duty Act, 1899?

  1. Agreement for sale of immovable property

  2. Promissory note

  3. Lease agreement

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

Cheques are exempt from stamp duty under the Stamp Duty Act, 1899.

Multiple choice

Which of the following is not a valid mode of payment for stamp duty on insurance policies in India?

  1. Cash

  2. Cheque

  3. Demand draft

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

Credit card is not a valid mode of payment for stamp duty on insurance policies in India.

Multiple choice

Which of the following is not a mode of payment of service tax?

  1. Cash

  2. Cheque

  3. Demand Draft

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

Credit Card is not a mode of payment of service tax.

Multiple choice

Who is responsible for paying the stamp duty on a promissory note?

  1. The maker of the note

  2. The payee of the note

  3. The holder of the note

  4. The endorser of the note
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The maker of the note is responsible for paying the stamp duty.

Multiple choice

When is the stamp duty on a promissory note payable?

  1. At the time the note is executed

  2. At the time the note is delivered

  3. At the time the note is negotiated

  4. At the time the note is paid
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The stamp duty on a promissory note is payable at the time the note is executed.

Multiple choice

What is the procedure for stamping a promissory note after it has been executed?

  1. The note must be taken to the nearest stamp vendor

  2. The note must be sent to the Stamp Commissioner

  3. The note must be stamped by a notary public

  4. The note can be stamped by any authorized person
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The procedure for stamping a promissory note after it has been executed is to take the note to the nearest stamp vendor.

Multiple choice

What is the cost of stamping a promissory note after it has been executed?

  1. The same as the cost of stamping the note at the time of execution

  2. Double the cost of stamping the note at the time of execution

  3. Triple the cost of stamping the note at the time of execution

  4. Quadruple the cost of stamping the note at the time of execution
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The cost of stamping a promissory note after it has been executed is double the cost of stamping the note at the time of execution.

Multiple choice

What types of complaints can be filed with the Banking Ombudsman?

  1. Complaints related to unauthorized withdrawals from a bank account.

  2. Complaints related to non-payment or delay in payment of a cheque.

  3. Complaints related to refusal of a bank to open an account.

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

The Banking Ombudsman can investigate and resolve complaints related to unauthorized withdrawals from a bank account, non-payment or delay in payment of a cheque, refusal of a bank to open an account, and other banking-related issues.