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

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.

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

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.