In the context of PFMS, the 'Core Banking Solution' (CBS) integration ensures that: MCQ with Answer and Explanation

In the context of PFMS, the 'Core Banking Solution' (CBS) integration ensures that:
A. Tax collections are automatically deposited into the Consolidated Fund
B. Government departments can open bank accounts directly
C. The RBI can monitor all private bank transactions
D. Funds are credited to the beneficiary's account in real-time without manual intervention
Answer: Option D
Solution (By JKExamLibrary)
CBS integration with PFMS ensures that once a payment instruction is processed, the funds are credited directly to the beneficiary's bank account in real-time, eliminating manual handling and delays.

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error
The 'Input Service Distributor' (ISD) under GST distributes:
A. Stock
B. Input tax credit on services received by the head office to branches
C. Goods
D. Cash

Correct Answer: Option B


Explanation:
ISD is an office that receives invoices for services and distributes credit to various units.

Question #2 Report Error
A tax levied on a commodity at each stage of production and distribution, based only on the value added at that stage, is characteristic of:
A. Corporate Tax
B. Wealth Tax
C. Value Added Tax (VAT) / GST
D. Income Tax

Correct Answer: Option C


Explanation:
VAT/GST eliminates the cascading effect by taxing only the value added, utilizing the Input Tax Credit mechanism.

Question #3 Report Error
Which of the following is an example of a real account?
A. Machinery Account
B. Creditor Account
C. Sales Account
D. Salary Account

Correct Answer: Option A


Explanation:
Machinery Account represents a tangible asset, which is a real account. The rule is 'Debit what comes in, credit what goes out'.