PFMS stands for: MCQ with Answer and Explanation

PFMS stands for:

A. Public Financial Management System

B. Private Financial Management Scheme

C. Public Finance and Monetary System

D. Public Fund Monitoring System

Answer: Option A

PFMS is the Public Financial Management System administered by the Department of Expenditure, Ministry of Finance, Government of India.

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

No comments yet. Be the first to start the discussion!

Question #1 Report Error

A petty cash voucher is authorized by:

A. The bank manager

B. The external auditor

C. The petty cashier or an authorized manager

D. The payee

Correct Answer: Option C

Explanation:
For internal control, petty cash vouchers must be authorized by a responsible official before disbursement is made.

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

Question #2 Report Error

A voucher that supports a transaction is called:

A. Journal voucher

B. Source voucher

C. Cash voucher

D. Transfer voucher

Correct Answer: Option B

Explanation:
Source vouchers are original documents like invoices, receipts that prove a transaction occurred.

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

Question #3 Report Error

The 'Financial Instruments' standard is:

A. Ind AS 16

B. Ind AS 115

C. Ind AS 109

D. Ind AS 2

Correct Answer: Option C

Explanation:
Ind AS 109 covers classification, measurement, and impairment of financial instruments.

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