'Internal Control' is the responsibility of: MCQ with Answer and Explanation

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'Internal Control' is the responsibility of:

A. Government

B. Management

C. Auditor

D. Shareholders

Answer: Option B

Solution (By JKSSB Mock Tests)

Management is responsible for establishing and maintaining internal controls.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

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If Sales are Rs 1,00,000, Variable Cost is Rs 60,000, what is the Contribution Margin Ratio (P/V Ratio)?

A. 40%

B. 60%

C. 20%

D. 100%

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Correct Answer: Option A

Explanation:
Contribution = Sales - Variable Cost = 40,000. P/V Ratio = (Contribution / Sales) * 100 = 40%.

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Question #2

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Which of these is a Direct Tax?

A. Excise Duty

B. Goods and Services Tax

C. Income Tax

D. Customs Duty

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Correct Answer: Option C

Explanation:
Income tax is a direct tax because the liability and burden of the tax fall on the same individual.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

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Zero Base Budgeting requires:

A. Justification of every budget item from scratch

B. Only incremental changes

C. Using last year's budget as base

D. No justification

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Correct Answer: Option A

Explanation:
ZBB starts from a 'zero base', and every function and expenditure must be justified.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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