In the Indian Financial Management System, the Consolidated Fund of India is operated by: MCQ with Answer and Explanation

In the Indian Financial Management System, the Consolidated Fund of India is operated by:
A. The Prime Minister
B. The Finance Minister
C. The RBI Governor
D. The President of India
Answer: Option D
Solution (By JKSSB Mock Tests)
All revenues received by the Government of India and all loans raised are credited to the Consolidated Fund, which is operated by the President.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is an extraordinary item?
A. Loss due to fire in a factory (not regular)
B. Sale of goods
C. Salary paid
D. Purchase of raw material

Correct Answer: Option A


Explanation:
Extraordinary items are unusual and infrequent, e.g., loss from natural disaster, expropriation.

Question #2
A: Internal check is a system of routine checks on the work of staff. R: Internal check is the same as internal audit. Choose the correct option.
A. A is true but R is false
B. Both A and R are true but R is NOT the correct explanation of A
C. Both A and R are true and R is the correct explanation of A
D. A is false but R is true

Correct Answer: Option A


Explanation:
Internal check is a continuous, routine system where the work of one employee is automatically checked by another. Internal audit is a separate, continuous appraisal system by specialized staff. They are not the same. A is true, R is false.

Question #3
S1: In a cash flow statement under Ind AS 7, dividends paid can be classified as either operating or financing activities. S2: Interest paid can be classified as either operating or financing activities. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S2 only
C. Both S1 and S2
D. S1 only

Correct Answer: Option C


Explanation:
Ind AS 7 allows flexibility. Dividends paid can be classified as financing (cash outflow for financing) or operating (to assist in determining cash from operations). Interest paid can be operating or financing. Both are correct.