In the context of PFMS, the 'Public Accounts Committee' (PAC) examines: MCQ with Answer and Explanation

In the context of PFMS, the 'Public Accounts Committee' (PAC) examines:
A. The annual budget estimates
B. The appropriation accounts and the audit reports of the CAG
C. The tax collection policies
D. The monetary policy of the RBI
Answer: Option B
Solution (By JKSSB Mock Tests)
The Public Accounts Committee (PAC) of the Parliament examines the appropriation accounts (showing how grants were spent) and the audit reports submitted by the Comptroller and Auditor General (CAG).

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Practice More Accountancy and Book Keeping Questions

Question #1
If a business purchases land for Rs 10 lakhs and its market value increases to Rs 15 lakhs, it is still recorded at Rs 10 lakhs due to:
A. Cost Concept
B. Dual Aspect Concept
C. Going Concern Concept
D. Money Measurement Concept

Correct Answer: Option A


Explanation:
The Cost Concept (Historical Cost) requires assets to be recorded at their original purchase price, ignoring subsequent market value fluctuations.

Question #2
The 'Safeguards' against threats to independence may be:
A. Only internal
B. None
C. Created by the profession, legislation, or within the client's organisation
D. Only regulatory

Correct Answer: Option C


Explanation:
Safeguards are measures that eliminate or reduce threats to an acceptable level.

Question #3
Long Term Capital Gains (LTCG) on the sale of listed equity shares over Rs 1 Lakh is currently taxable at:
A. 30% with indexation
B. 15% with indexation
C. 10% without indexation
D. 20% without indexation

Correct Answer: Option C


Explanation:
Under Section 112A, LTCG on listed equity shares exceeding Rs 1 lakh in a year is taxed at 10% without the benefit of indexation.