Commerce Accountancy · 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 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.

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

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.