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

How can a complaint be filed with the Banking Ombudsman?

  1. By submitting a complaint form online.

  2. By sending a complaint letter to the Banking Ombudsman.

  3. By visiting the Banking Ombudsman's office in person.

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

A complaint can be filed with the Banking Ombudsman by submitting a complaint form online, by sending a complaint letter to the Banking Ombudsman, or by visiting the Banking Ombudsman's office in person.

Multiple choice

Which of the following is a common method of paying employees?

  1. Direct deposit

  2. Paper checks

  3. Payroll cards

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

Direct deposit, paper checks, and payroll cards are all common methods used to pay employees.

Multiple choice

What are the security features of Indian paper money?

  1. Watermarks, security threads, latent images, microprinting, fluorescent inks

  2. Holograms, magnetic inks, ultraviolet inks, color-shifting inks, see-through registers

  3. Raised printing, tactile marks, braille features, optically variable inks, microfibers

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

Indian paper money has a variety of security features, including watermarks, security threads, latent images, microprinting, fluorescent inks, holograms, magnetic inks, ultraviolet inks, color-shifting inks, see-through registers, raised printing, tactile marks, braille features, optically variable inks, and microfibers.

Multiple choice

Who is eligible to open a Non-Resident Ordinary (NRO) Account?

  1. Indian citizens residing abroad

  2. Foreign nationals residing in India

  3. Overseas citizens of India (OCIs)

  4. Persons of Indian Origin (PIOs)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Indian citizens residing abroad are eligible to open a Non-Resident Ordinary (NRO) Account.

Multiple choice

Which of the following is NOT a type of negotiable instrument recognized under the Negotiable Instruments Act, 1881?

  1. Promissory Note

  2. Bill of Exchange

  3. Cheque

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

A Demand Draft is not a negotiable instrument as defined under the Negotiable Instruments Act, 1881. It is a written order by a bank to another bank to pay a specified sum of money to a named person or bearer on demand.

Multiple choice

What is the maximum period within which a holder must present a cheque for payment to the bank?

  1. 3 months

  2. 6 months

  3. 1 year

  4. 15 days
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

According to the Negotiable Instruments Act, 1881, a holder must present a cheque for payment to the bank within 15 days from the date of issue. Failure to do so may result in the holder losing their right to claim payment from the bank.

Multiple choice

What is the legal consequence of a drawer of a bill of exchange failing to make payment upon dishonor?

  1. They become liable to pay the face value of the bill to the holder.

  2. They are subject to criminal prosecution.

  3. They lose their right to sue the endorsers of the bill.

  4. They are barred from issuing any further bills of exchange.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

If the drawer of a bill of exchange fails to make payment upon dishonor, they become liable to pay the face value of the bill to the holder. This liability arises from the drawer's contractual obligation to honor the bill when it becomes due.

Multiple choice

What are some common methods for collecting Accounts Receivable?

  1. Sending statements and reminders.

  2. Offering discounts for early payment.

  3. Following up with customers who are late on payments.

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

Common methods for collecting Accounts Receivable include sending statements and reminders, offering discounts for early payment, and following up with customers who are late on payments.

Multiple choice

What are the consequences of not paying stamp duty?

  1. The document may be considered invalid.

  2. Penalties and fines 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 the document being considered invalid, penalties and fines being imposed, legal action being taken, or a combination of these consequences.

Multiple choice

Can stamp duty be refunded in certain circumstances?

  1. Yes, in cases of overpayment.

  2. Yes, in cases of incorrect payment.

  3. Yes, in cases of cancellation of the transaction.

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

Stamp duty refunds may be available in cases of overpayment, incorrect payment, cancellation of the transaction, or other specific circumstances.

Multiple choice

What are some common challenges associated with the payment of stamp duty?

  1. Understanding the applicable rates and exemptions.

  2. Determining the correct time frame for payment.

  3. Avoiding penalties and fines for late payment.

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

Common challenges associated with the payment of stamp duty include understanding the applicable rates and exemptions, determining the correct time frame for payment, and avoiding penalties and fines for late payment.

Multiple choice

What does a moneyline of -110 mean?

  1. You need to bet \$110 to win \$100
  2. You need to bet \$100 to win \$110
  3. You need to bet \$110 to win \$110
  4. You need to bet \$100 to win \$90
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A moneyline of -110 means that you need to bet \$110 to win \$100. This means that the team you are betting on is favored to win.

Multiple choice

What does a moneyline of +150 mean?

  1. You need to bet \$150 to win \$100
  2. You need to bet \$100 to win \$150
  3. You need to bet \$150 to win \$150
  4. You need to bet \$100 to win \$50
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A moneyline of +150 means that you need to bet \$100 to win \$150. This means that the team you are betting on is an underdog.

Multiple choice

What is the intentional alteration or falsification of a document or signature?

  1. Fraud

  2. Embezzlement

  3. Larceny

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

Forgery is the intentional alteration or falsification of a document or signature. It is a type of fraud that can be used to deceive others into believing that a document is genuine.

Multiple choice

What is the intentional alteration or falsification of a document or signature?

  1. Fraud

  2. Embezzlement

  3. Larceny

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

Forgery is the intentional alteration or falsification of a document or signature. It is a type of fraud that can be used to deceive others into believing that a document is genuine.