All revenues received, loans raised, and money received in repayment of loans by the Government of India form part of the: MCQ with Answer and Explanation

All revenues received, loans raised, and money received in repayment of loans by the Government of India form part of the:

A. Contingency Fund of India

B. Public Account of India

C. Prime Minister's Relief Fund

D. Consolidated Fund of India

Answer: Option D

As per Article 266(1), all these inflows form the Consolidated Fund of India, from which no money can be spent without parliamentary approval.

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

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Question #1 Report Error

Money kept in Provident Funds and small savings schemes forms part of the:

A. Consolidated Fund of India

B. RBI Reserves

C. Public Account of India

D. Contingency Fund of India

Correct Answer: Option C

Explanation:
The Public Account holds money acting as a banker (e.g., provident funds) and does not require parliamentary vote for disbursements.

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

Question #2 Report Error

The 'Audit Documentation' (working papers) is the property of:

A. Shareholders

B. Government

C. Client

D. Auditor

Correct Answer: Option D

Explanation:
Working papers belong to the auditor; client does not have a right to them.

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

Question #3 Report Error

If a trial balance does not tally, the difference is put to:

A. Profit and Loss account

B. Drawings account

C. Suspense account

D. Capital account

Correct Answer: Option C

Explanation:
A suspense account is opened temporarily to make the trial balance agree pending detection of errors.

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