Budgetary control is a system of controlling costs that includes: MCQ with Answer and Explanation

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Budgetary control is a system of controlling costs that includes:

A. Hiring of staff

B. Preparation of budgets only

C. Fixing of selling prices

D. Continuous comparison of actuals with budgets

Answer: Option D

Solution (By JKSSB Mock Tests)

Budgetary control involves preparing budgets and continuously comparing actual performance against the budget to take corrective action.

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

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Question #1

Which financial statement shows the net profit or loss for an accounting period?

A. Trial Balance

B. Statement of Profit & Loss

C. Balance Sheet

D. Cash Flow Statement

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Correct Answer: Option B

Explanation:
The Statement of Profit & Loss (Profit & Loss Account) calculates the net result of operations.

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

Question #2

A business has a closing stock of ₹60,000, its NRV is ₹55,000. Stock will be valued at:

A. ₹60,000 or ₹55,000 at option

B. ₹60,000

C. ₹57,500

D. ₹55,000

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Correct Answer: Option D

Explanation:
Prudence requires stock at lower of cost or NRV, so ₹55,000.

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

Question #3

PFMS is implemented by which ministry?

A. Ministry of Home Affairs

B. Ministry of Commerce

C. Ministry of Corporate Affairs

D. Ministry of Finance

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Correct Answer: Option D

Explanation:
PFMS (Public Financial Management System) is under the Office of the Controller General of Accounts, Ministry of Finance.

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

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