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

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

Which technology has made it easier for people to pay for nightlife expenses?

  1. Digital Wallets

  2. Mobile Payments

  3. Contactless Payments

  4. QR Code Payments
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Digital wallets like Paytm, Google Pay, and PhonePe have made it easier for people to pay for nightlife expenses, such as drinks, food, and tickets, without the need for cash or credit cards.

Multiple choice

What are some common challenges faced in Accounts Payable?

  1. Processing large volumes of invoices

  2. Ensuring timely payments to suppliers

  3. Managing supplier relationships

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

Accounts Payable departments often face challenges such as processing large volumes of invoices, ensuring timely payments to suppliers, managing supplier relationships, and staying compliant with regulations.

Multiple choice

What is the impact of late payments in Accounts Payable?

  1. Damaged supplier relationships

  2. Potential legal consequences

  3. Increased costs due to late payment fees

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

Late payments in Accounts Payable can lead to damaged supplier relationships, potential legal consequences, increased costs due to late payment fees, and a negative impact on the company's reputation.

Multiple choice

How are unemployment insurance benefits paid?

  1. By check

  2. By direct deposit

  3. By debit card

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

Unemployment insurance benefits can be paid by check, by direct deposit, or by debit card.

Multiple choice

What is the procedure for paying stamp duty on bonds?

  1. Affixing a stamp paper of the appropriate value on the bond

  2. Paying the stamp duty online

  3. Both affixing a stamp paper and paying online

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

In India, stamp duty on bonds can be paid either by affixing a stamp paper of the appropriate value on the bond or by paying the stamp duty online.

Multiple choice

What documents are required to claim a refund of stamp duty on bonds?

  1. The original bond

  2. The stamp paper used for paying stamp duty

  3. The receipt of payment of stamp duty

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

To claim a refund of stamp duty on bonds, the following documents are required: the original bond, the stamp paper used for paying stamp duty, and the receipt of payment of stamp duty.

Multiple choice

What is the procedure for payment of stamp duty on debentures?

  1. The company must file a return with the Stamp Duty Office

  2. The company must pay the stamp duty online

  3. The company must affix a stamp paper on the debentures

  4. Both the company must file a return with the Stamp Duty Office and pay the stamp duty online
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The company must file a return with the Stamp Duty Office and pay the stamp duty online.

Multiple choice

What is the most common method of payment accepted by the Cashier's Office?

  1. Cash

  2. Check

  3. Credit card

  4. Electronic funds transfer (EFT)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Electronic funds transfer (EFT) is the most common method of payment accepted by the Cashier's Office because it is convenient, secure, and efficient.

Multiple choice

What is the Cashier's Office's role in the accounts receivable process?

  1. To bill customers for goods or services.

  2. To collect payments from customers.

  3. To maintain a record of all accounts receivable transactions.

  4. To write off uncollectible accounts.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Cashier's Office is responsible for collecting payments from customers, typically by cash, check, or credit card.

Multiple choice

What is the most common method used to enforce child support payments?

  1. Wage garnishment

  2. Tax refund intercept

  3. Property lien

  4. Bank account levy
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Wage garnishment is the most common method used to enforce child support payments. It involves withholding a portion of the non-custodial parent's wages and sending it directly to the custodial parent or child support agency.

Multiple choice

Which cheques are exempt from Stamp Duty?

  1. Cheques issued by banks

  2. Cheques issued by government departments

  3. Cheques issued by public sector undertakings

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

Cheques issued by banks, government departments, and public sector undertakings are exempt from Stamp Duty.

Multiple choice

What is the rate of Stamp Duty on Cheques?

  1. 0.1%

  2. 0.2%

  3. 0.3%

  4. 0.4%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The rate of Stamp Duty on Cheques is 0.1%.

Multiple choice

How is Stamp Duty on Cheques calculated?

  1. On the face value of the cheque

  2. On the amount of the cheque

  3. On the sum of the face value and the amount of the cheque

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

Stamp Duty on Cheques is calculated on the amount of the cheque.

Multiple choice

Who is responsible for paying Stamp Duty on Cheques?

  1. The drawer of the cheque

  2. The payee of the cheque

  3. The bank that issues the cheque

  4. The bank that collects the cheque
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The drawer of the cheque is responsible for paying Stamp Duty on Cheques.