In the context of PFMS, the 'Core Banking Solution' (CBS) integration ensures that: MCQ with Answer and Explanation

In the context of PFMS, the 'Core Banking Solution' (CBS) integration ensures that:
A. Tax collections are automatically deposited into the Consolidated Fund
B. Government departments can open bank accounts directly
C. Funds are credited to the beneficiary's account in real-time without manual intervention
D. The RBI can monitor all private bank transactions
Answer: Option C
Solution (By JKSSB Mock Tests)
CBS integration with PFMS ensures that once a payment instruction is processed, the funds are credited directly to the beneficiary's bank account in real-time, eliminating manual handling and delays.

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Practice More Accountancy and Book Keeping Questions

Question #1
Assertion (A): Under Ind AS 23, borrowing costs directly attributable to the acquisition of a qualifying asset must be capitalized. Reason (R): A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. Choose the correct option.
A. A is true but R is false
B. Both A and R are true and R is the correct explanation of A
C. Both A and R are true but R is NOT the correct explanation of A
D. A is false but R is true

Correct Answer: Option B


Explanation:
Ind AS 23 requires capitalization of borrowing costs for qualifying assets. A qualifying asset is defined precisely as one that takes a substantial period to be ready for use or sale. R correctly defines the term and explains the basis for capitalization.

Question #2
The term 'Window Dressing' in accounting refers to:
A. Manipulation of financial statements to present a better picture
B. Decorating the office
C. Auditing process
D. Maintaining proper records

Correct Answer: Option A


Explanation:
Window dressing is the act of manipulating financial data to make the company's financial position appear more favorable than it actually is.

Question #3
In voucher system, a 'Debit Voucher' is prepared for:
A. Cash receipts
B. Credit purchases
C. Cash payments
D. Credit sales

Correct Answer: Option C


Explanation:
Debit voucher records cash/bank payment transactions.