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

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

An outstanding bonds are also classified as _______________.

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

  1. standing bonds

  2. outdated bonds

  3. dated bonds

  4. seasoned bonds

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Correct Option: D

A risk which is classified as its contribution to risk of portfolio is classified as __________.

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

  1. classified risk

  2. contributed risk

  3. irrelevant risk

  4. relevant risk

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Correct Option: D

The Reserve Bank of India has decided to help banks, as a temporary measure, by providing additional liquidity support under LAF. What is the full form of LAF?

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

  1. Loan Adjustment Fund

  2. Liquidity Adjustment Facility

  3. Long Awaited Funds

  4. Loan Against Funds

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Correct Option: B

Source document are useful to record business transactions in the books of accounts.

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

  1. True

  2. False

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Correct Option: A
Explanation:

The source document is essential to the bookkeeping and accounting process as it provides evidence that a financial transaction has occurred. During an accounting or tax audit, source documents back up the accounting journals and general ledger as an indisputable transaction trail.

Cash memo is used for credit purchase/sale.

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

  1. True

  2. False

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Correct Option: B
Explanation:

Whenever goods are sold in cash, a seller prepares a cash memo and records therein details of goods sold. This memo includes quantity, rate and total amount of goods sold, along with the date of transaction. 

All cash transactions are recorded in the books of accounts on the basis of the cash memos. 
A cash memo is prepared when goods are sold for cash. 
Thus, a cash memo is given by a trader in the case of sale and it is received in the case of purchases.
Cash memos are used for cash purchases/sales in order to record the credit purchases/sales, an invoice or bills are prepared by the seller.

Trade discount allowed on the sales, if appearing in the trial balance, is shown in the final accounts ____________.

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

  1. on the debit side of trading account

  2. on the debit side of the profit and loss account

  3. by way of deduction from the sales in the trading account

  4. credit of profit & loss Account

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Correct Option: C

When does a entry termed as a combined entry ____________________.

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

  1. If two transactions of one company are involved

  2. If there is debit and credit both

  3. Transactions are of the same nature and they take place on the same day.

  4. An the accounts are debited the very same day

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Correct Option: C

Port Trust dues are payable by _________________.

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

  1. The forwarding agent

  2. Importer

  3. Exporter

  4. Shipping company

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Correct Option: B
Explanation:

The 'Landing and Shipping DuesOffice' levies a charge for services of dock authorities which has to be borne by the importer. After payment of dock charges, the importer is given back one copy of the application as a receipt. This receipt is is known as 'port trust dues receipt'.

Import procedure begins with _____________.

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

  1. Indent

  2. Marine insurance

  3. Mate's certificate

  4. Shipping order

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Correct Option: A
Explanation:

 Indent orders are orders that are placed for products produced offshore. It generally is for a large quantity of standard or custom made products manufactured overseas and due to the higher volumes, the price per unit is lower.


After the initial formalities are over and the importer has obtained the licence quota and the necessary amount of foreign exchange, the next step in the import of goods is that of placing the order. This order is known as Indent.

The credit balance in the bank account is_______.

book keeping and accountancy origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents

  1. An asset

  2. A liability

  3. An expense

  4. Contingent liability

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Correct Option: B
Explanation:

A credit balance in bank account means that the person in whose account this belongs to is under an obligation to pay the bank back the entitlement of such balances. This money has been owned to the account holder by the bank and must be repaid i.e. it is a liability.