Budgetary control system involves: MCQ with Answer and Explanation

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Budgetary control system involves:

A. Comparing actual figures with budgeted figures

B. Setting long-term objectives

C. Fixing selling price

D. Only preparing cash budget

Answer: Option A

Solution (By JKSSB Mock Tests)

Budgetary control is the establishment of budgets relating to responsibilities of executives to the requirements of a policy and the continuous comparison of actual with budgeted results.

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

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Question #1

The system of accounting where revenue is recognized only when cash is received is:

A. Cash basis

B. Accrual basis

C. Hybrid system

D. Mercantile system

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Correct Answer: Option A

Explanation:
Under the cash basis of accounting, transactions are recorded strictly upon the actual receipt or payment of cash.

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Question #2

Which of the following statements about a 'Voucher' is incorrect?

A. A debit voucher is prepared for cash payments.

B. A voucher is a documentary evidence of a transaction.

C. A journal voucher is used for recording depreciation.

D. A credit voucher is used for recording non-cash transactions.

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Correct Answer: Option D

Explanation:
Credit voucher is used for cash receipts, not non-cash transactions. Non-cash are recorded via journal/transfer vouchers.

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Question #3

The 'Form 26QB' is related to:

A. TDS on purchase of immovable property (Section 194-IA)

B. TDS on rent

C. TDS on salary

D. Advance tax

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Correct Answer: Option A

Explanation:
Form 26QB is the challan-cum-statement for TDS on property purchase.

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

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