Tag: accountancy

Quizzes (207) Questions (428)

Questions Related to accountancy

Multiple choice accountancy accounting for bills of exchange transaction nature, advantages and types of cheques meaning, definition and characteristics of promissory note promissory note

The Negotiable Instruments Act, 1881 has recognised an _____________ also as a cheque.

  1. virtual cheque

  2. accommodation bill

  3. bearer cheque

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

The Negotiable Instruments (Amendment) Act, 2002, introduced the concept of an electronic cheque, which is a cheque drawn in electronic form.

Multiple choice accountancy accounting for bills of exchange transaction nature, advantages and types of cheques meaning, definition and characteristics of promissory note promissory note

 A cheque does not include the electronic image of a truncated cheque and a cheque in the electronic form.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Section 6 of the Negotiable Instruments Act explicitly includes electronic images of truncated cheques and cheques in electronic form within the definition of a cheque.

Multiple choice accountancy accounting for bills of exchange transaction nature, advantages and types of cheques meaning, definition and characteristics of promissory note promissory note

Cheque is as _______________.

  1. Promissory note

  2. Bill of exchange

  3. Both a and b above

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

A cheque is a specific type of bill of exchange drawn on a specified banker and is always payable on demand. It is not a promissory note, which is an unconditional promise to pay.

Multiple choice accountancy accounting for bills of exchange transaction nature, advantages and types of cheques meaning, definition and characteristics of promissory note promissory note

If the words "not negotiable' are used with special crossing in a cheque, the cheque is _______________.

  1. Not transferable

  2. Transferable

  3. Negotiable under certain circumstances

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

The words 'not negotiable' on a crossed cheque do not restrict the transferability of the cheque; they merely prevent the holder from having a better title than the transferor. Therefore, the cheque remains transferable.

Multiple choice accountancy accounting for bills of exchange transaction nature, advantages and types of cheques meaning, definition and characteristics of promissory note promissory note

A Promissory Note or Bill of Exchange can be made payable ___________.

  1. On demand

  2. On a specified date

  3. After a specified period - months or days

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

Promissory notes and bills of exchange can be drawn payable on demand, on a specific future date, or after a certain period of time (usance).

Multiple choice accountancy provisions and reserves reserves provisions provision and reserves

Trial balance provides you the following information:
Debtors                              80,000
Bad debts                             2,000
Provision for bad debts        4,000
It is desired to maintain a provision for bad debt of  1,000. State the amount to be debited/credited in profit and loss account.

  1. 5,000 (Debit)

  2. 3,000 (Debit)

  3. 1,000 (Credit)

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

The balance in provision for bad debts is appearing in trial balance Rs.4000, of which bad debts of Rs.2000 is written off. Balance lying in provision account is now Rs.2000. It is desired to maintain a provision for bad debts of Rs.1000 only, hence an excess provision of Rs.1000 to be written back to profit & loss account by crediting the profit & loss a/c. 


                                           Provision for Bad Debts A/c

Particulars                             Amount                   Particulars                     Amount
To Bad debts                         2000                    By  Op Balance b/f            4000
To Profit & Loss A/c               1000
To Clo Balance c/d                1000
                                             -----------                                                              ----------
                                                4000                                                                4000
                                             ------------                                                            -----------

Multiple choice accountancy provisions and reserves reserves provisions provision and reserves

The provision for establishment of a 'District Consumer Protection Council' was made by the year _________ .

  1. 1988

  2. 1993

  3. 2002

  4. 2008
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Consumer Protection Act and its subsequent amendments established the framework for District Consumer Protection Councils, with the 2002 amendment being a key milestone for these provisions.