A: The Public Account of India includes funds like the Provident Fund. R: The government can withdraw money from the Public Account without parliamentary approval. Choose the correct option. MCQ with Answer and Explanation

A: The Public Account of India includes funds like the Provident Fund. R: The government can withdraw money from the Public Account 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 false but R is true
C. Both A and R are true but R is NOT the correct explanation of A
D. A is true but R is false
Answer: Option A
Solution (By JKSSB Mock Tests)
The Public Account of India holds money like Provident Funds, where the government acts as a banker. Since these funds belong to others, the government can make payments from this account without parliamentary approval. Both are true and R explains A.

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Practice More Accountancy and Book Keeping Questions

Question #1
A newly admitted partner acquires his share of profit from:
A. Profit and loss account
B. The firm directly
C. Old partners by way of sacrifice
D. Outside parties

Correct Answer: Option C


Explanation:
A new partner's share comes from the old partners who sacrifice a portion of their profit share.

Question #2
Which of the following is an example of a 'Revenue Reserve'?
A. Capital redemption reserve
B. Revaluation reserve
C. General reserve
D. Securities premium

Correct Answer: Option C


Explanation:
General reserve is created from revenue profits, hence a revenue reserve. Securities premium and capital redemption reserve are capital reserves. Revaluation reserve arises from revaluation of assets, also capital.

Question #3
The 'Voucher' approach in accounting helps to:
A. Ensure documentation and authorisation of transactions
B. Simplify journal entries
C. Prepare trial balance
D. Compute tax

Correct Answer: Option A


Explanation:
Voucher system ensures that every transaction is supported by documentary evidence and approval.