No verified paper has been uploaded for AJKPSC-PMS Paper Accountancy & Auditing 2020 MCQs yet.
The MCQs below are drawn from the Accountancy & Auditing subject category.
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1181
Which payment method is generally considered the most secure and preferred for business transactions?
A crossed cheque is a preferred method of payment because it ensures that the funds are deposited directly into the payee's bank account, providing an audit trail and reducing the risk of theft or unauthorized encashment compared to cash payments.
1182
Under what condition is an accountant authorized to record a business transaction?
The principle of objectivity requires that accounting records be based on verifiable evidence. Documentary evidence, such as invoices, receipts, or vouchers, provides the necessary proof that a transaction has actually occurred, ensuring the reliability of financial statements.
1183
What is the term for the documentary evidence used to record the specific details of a financial transaction?
A voucher serves as the primary documentary evidence in a specific format that validates the details of a financial transaction. It acts as the basis for making entries in the books of account and is typically supported by external documents like invoices, receipts, or bills to ensure auditability and accuracy.
1184
What serves as the primary evidence that a business transaction has occurred?
Source documents, such as invoices, receipts, and vouchers, provide the objective evidence required to verify that a financial transaction has actually taken place. They form the foundation for all subsequent accounting entries in the books of original entry.
1185
What term describes the written documentation that serves as evidence for a business transaction?
A voucher is a document that serves as written evidence of a business transaction. It provides the necessary proof for auditors and accountants to verify that a transaction actually occurred, the amount involved, and the nature of the expense or income. Vouchers are essential for maintaining an accurate and transparent accounting trail.
1186
Which item serves as the primary evidence that a financial transaction has occurred?
A source document, such as an invoice, receipt, or voucher, provides objective evidence that a transaction has taken place. It serves as the original record from which accounting entries are derived, ensuring the accuracy and verifiability of the financial records.
1187
Which of the following items serves as a primary source document for accounting entries?
A source document is the original record that contains the details of a business transaction. An invoice from a supplier provides objective evidence of a purchase, allowing the accountant to verify the transaction's occurrence and amount. Conversely, the Trial Balance, Income Statement, and Balance Sheet are financial reports generated from processed data, not the initial documents used to record individual transactions.
1188
Which document must be completed when depositing cash or cheques into a bank account?
A pay-in-slip, also known as a deposit slip, is a document provided by the bank that a customer fills out when depositing funds. It details the amount, date, and account information, serving as proof of the deposit for both the customer and the bank.
1189
What serves as the primary evidence that a financial transaction has occurred?
A source document, such as an invoice, receipt, or voucher, acts as the original evidence of a transaction. It provides the necessary details to verify the occurrence and amount of a transaction before it is recorded in the accounting books.
1190
Which documents serve as the primary evidence for recording business transactions?
Source documents are the original business papers, such as invoices, receipts, and vouchers, that provide the necessary evidence and details to record financial transactions accurately in the accounting system.
