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. The RBI can monitor all private bank transactions
B. Tax collections are automatically deposited into the Consolidated Fund
C. Funds are credited to the beneficiary's account in real-time without manual intervention
D. Government departments can open bank accounts directly
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
In a computerized accounting system, a voucher is:
A. A type of software
B. A physical paper document
C. A printed report
D. A screen to input transaction data

Correct Answer: Option D


Explanation:
In accounting software, voucher refers to the data entry form for recording transactions.

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. 2 and 3 only
B. 1 and 3 only
C. 1, 2 and 3
D. 1 and 2 only

Correct Answer: Option B


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
A: Interest on capital is allowed only out of profits. R: If the firm incurs a loss, no interest on capital is allowed. 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

Correct Answer: Option A


Explanation:
Interest on capital is an appropriation of profit, not a charge against profit. Therefore, it is only allowed if the firm makes a profit. If there is a loss, it is not allowed. R correctly explains A.