In the context of the Indian Financial System, the 'Deposit Insurance and Credit Guarantee Corporation' (DICGC) is a wholly owned subsidiary of: MCQ with Answer and Explanation

In the context of the Indian Financial System, the 'Deposit Insurance and Credit Guarantee Corporation' (DICGC) is a wholly owned subsidiary of:
A. Ministry of Finance
B. State Bank of India
C. Reserve Bank of India
D. Securities and Exchange Board of India
Answer: Option C
Solution (By JKSSB Mock Tests)
The DICGC was established as a wholly owned subsidiary of the Reserve Bank of India (RBI) to provide deposit insurance and guarantee credit facilities.

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Practice More Accountancy and Book Keeping Questions

Question #1
Under the General Financial Rules (GFR) 2017, the 'Reappropriation' of funds means:
A. Returning unspent funds to the Consolidated Fund
B. Transferring funds from one head to another without parliamentary approval
C. Transferring savings from one unit of appropriation to meet a deficit in another unit
D. Increasing the total budget allocation

Correct Answer: Option C


Explanation:
Reappropriation under GFR refers to the transfer of savings from one unit of appropriation (like a specific grant or head) to meet a shortfall in another unit, without increasing the total authorized expenditure.

Question #2
A: Fixed overheads are ignored in marginal costing. R: Marginal costing only considers variable costs for decision making. 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. A is true but R is false
D. Both A and R are true but R is NOT the correct explanation of A

Correct Answer: Option D


Explanation:
In marginal costing, fixed overheads are treated as period costs and are not included in the cost of production. This is because marginal costing focuses on variable costs for short-term decision making. Both are true, but R is the underlying principle, not just an explanation of ignoring fixed costs.

Question #3
Under Ind AS 16, if an item of PPE is revalued, how should the revaluation surplus be treated in the statement of cash flows?
A. It is a non-cash item and does not affect the cash flow statement
B. Shown as cash inflow from investing activities
C. Deducted from financing activities
D. Shown as cash inflow from operating activities

Correct Answer: Option A


Explanation:
Revaluation surplus is a non-cash adjustment that affects the carrying amount of the asset and equity, but it does not involve any actual cash flow. Therefore, it is not reflected in the cash flow statement.