A: The Contingency Fund of India is established to meet unforeseen expenditures. R: The President can make advances from this fund without parliamentary approval. Choose the correct option. MCQ with Answer and Explanation

A: The Contingency Fund of India is established to meet unforeseen expenditures. R: The President can make advances from this fund without parliamentary approval. Choose the correct option.
A. Both A and R are true and R is the correct explanation of A
B. A is true but R is false
C. A is false but R is true
D. Both A and R are true but R is NOT the correct explanation of A
Answer: Option A
Solution (By JKSSB Mock Tests)
The Contingency Fund of India is an imprest held by the President to meet urgent, unforeseen expenditures. The President can authorize advances from it, which are later regularized by Parliament. R correctly explains the mechanism.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is a feature of 'Process Costing'?
A. Used for unique products
B. Costs are accumulated by processes
C. Used for construction contracts
D. Each job is separate

Correct Answer: Option B


Explanation:
Process costing applies to continuous production where output is homogeneous, costs tracked by process.

Question #2
Consider the following statements about the 'Money Measurement Concept': 1. Only transactions that can be expressed in monetary terms are recorded. 2. Non-monetary events like a strike or labour unrest are also recorded if they affect business. 3. The concept assumes that the purchasing power of money remains stable. Which of the above statements are correct?
A. 1 and 3 only
B. 1 and 2 only
C. 1, 2 and 3
D. 2 and 3 only

Correct Answer: Option A


Explanation:
Statement 1 is correct, 2 is incorrect because non-monetary events are not recorded. 3 is correct as an inherent assumption of the money measurement concept.

Question #3
The 'Receipts and Payments Account' is prepared by:
A. Companies
B. Trading concerns
C. Non-profit organizations
D. Partnership firms

Correct Answer: Option C


Explanation:
Non-profit organizations prepare Receipts and Payments Account as a summary of cash transactions.