PFMS facilitates 'Just-in-Time' release of funds. This means: MCQ with Answer and Explanation

Question

Share Report Error

PFMS facilitates 'Just-in-Time' release of funds. This means:

A. Funds are released when required, minimising idle balances

B. Funds are released annually

C. Funds are released in advance

D. Funds are never released

Answer: Option A

Solution (By JKSSB Mock Tests)

Just-in-Time in PFMS reduces float and improves cash management for government.

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Who typically authorizes an accounting voucher before it is recorded?

A. An Authorized Signatory or Manager

B. The Cashier

C. The Auditor

D. The Junior Accountant

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
For internal control, vouchers must be signed and authorized by a designated manager or official before posting.

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

Question #2

Identify the non-cash item from the following:

A. Dividend paid

B. Wages paid

C. Purchase of machinery

D. Depreciation

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Depreciation is the systematic allocation of asset cost; it does not involve any actual outflow of cash.

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

Question #3

Under PFMS, the hierarchy of fund flow tracking ensures that funds meant for a village panchayat can be monitored by:

A. The central ministries, state departments, and executing agencies simultaneously

B. The World Bank

C. Only the state government

D. Only the village sarpanch

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
PFMS is a web-based tracking system that provides end-to-end visibility of fund flow, accessible across all levels of government hierarchy.

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

Explore All Accountancy and Book Keeping MCQs