Tag: origin of transactions - source documents and preparation of vouchers

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Questions Related to origin of transactions - source documents and preparation of vouchers

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

New issue market is an integral part of the _________.

  1. stock exchange

  2. capital market

  3. stock exchange and capital market

  4. discount houses
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The new issue market, also known as the primary market, is where new securities are issued and is a vital component of the capital market.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

Which of the following is NOT a characteristic of perfect competition?

  1. Free entry and exit of the firms

  2. The demand curve of firm is horizontal

  3. The marginal revenue curve is horizontal

  4. An individual firm can influence the price
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In perfect competition, firms are price takers, meaning they have no power to influence the market price. Options A, B, and C are all standard characteristics of perfect competition.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

What is time of supply of goods liable to tax under reverse charge mechanism?

  1. Date of receipt of goods

  2. Date on which the payment is made

  3. Date immediately following 30 days from the date of issue of invoice by the supplier

  4. Earlier of a/b/c
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Reverse Charge Mechanism (RCM) for goods, the time of supply is determined by the earliest of the date of receipt of goods, the date of payment, or the date immediately following 30 days from the date of issue of the invoice.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

Financial security issued by banks operating outside U.S is classified as ______________.

  1. dollar bonds

  2. euro deposits

  3. Eurodollar market deposits

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

Eurodollar market deposits refer to deposits denominated in U.S. dollars held at banks or bank branches located outside the United States.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

_________ is the arrangement of furniture and equipment with the available floor space.

  1. Office accommodation

  2. Office location

  3. Office layout

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

Office layout is defined as the strategic arrangement of furniture, equipment, and workspace to maximize efficiency and flow within an office environment.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

Goodwill, Copyright and Trademarks should be classified as ___________.

  1. Tangible assets

  2. Intangible assets

  3. Current assets

  4. Fictitious assets
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Goodwill, Copyrights, and Trademarks are assets that lack physical substance, which classifies them as intangible assets.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

When marginal is negative, it must be true that _______________.

  1. The average is negative

  2. The average is decreasing

  3. The total is negative

  4. The total is decreasing
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Marginal value is the change in total value. If the marginal value is negative, it means the total value is decreasing with each additional unit.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

An increase in marginal cost of capital and capital rationing are two arising complications of _____________.

  1. maximum capital budget

  2. greater capital budget

  3. optimal capital budget

  4. minimum capital budget
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An optimal capital budget seeks to balance the cost of capital and investment opportunities, often leading to complications like capital rationing and rising marginal costs.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

Under sales on return or approval basis (when transactions are few), the seller sends goods by treating these as ________________.

  1. An ordinary sale and no entry is passed in the books

  2. An ordinary sale and entry for normal sale is passed in the books

  3. Sale on approval and no entry is passed

  4. Any one of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When transactions are few, it is common accounting practice for the seller to treat goods sent on approval as an ordinary sale, recording the entry immediately.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers business transactions and source document source documents voucher and transactions

How is the date of receipt of consideration by the supplier determined?

  1. Date on which the receipt of payment is entered in the books of account

  2. Date on which the receipt of payment is credited in the bank account

  3. Earlier of (a) & (b)

  4. (a) & (b) whichever is later
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The date of receipt of consideration is generally determined as the earlier of the date the payment is entered in the books or the date the payment is credited to the bank account.