A 'Flexible Budget' is also known as: MCQ with Answer and Explanation

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A 'Flexible Budget' is also known as:

A. Cash budget

B. Sliding scale budget

C. Fixed budget

D. Master budget

Answer: Option B

Solution (By JKExamLibrary)

Flexible budget changes with activity levels, hence also called variable or sliding scale budget.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1 Report Error

PFMS is managed and implemented by:

A. NITI Aayog

B. Comptroller and Auditor General (CAG)

C. Controller General of Accounts (CGA)

D. Reserve Bank of India (RBI)

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Correct Answer: Option C

Explanation:
The Controller General of Accounts (CGA) under the Ministry of Finance administers the PFMS portal.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The term 'Imprest Money' is related to:

A. Cash credit

B. Petty cash

C. Overdraft

D. Fixed deposit

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Correct Answer: Option B

Explanation:
Imprest system is used to maintain petty cash.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

If a transaction is recorded in the Journal Proper, which of the following is the most likely scenario?

A. Credit purchase of machinery for business use

B. Cash payment of wages

C. Cash sale of old furniture

D. Credit purchase of trading goods

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Correct Answer: Option A

Explanation:
Credit purchases of assets (like machinery) do not go into the Purchases Book (which is only for trading goods) or Cash Book (as it's a credit transaction). They are recorded in the Journal Proper.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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