The 'Government Accounting Standards Advisory Board' (GASAB) was established by: MCQ with Answer and Explanation

The 'Government Accounting Standards Advisory Board' (GASAB) was established by:
A. RBI
B. Ministry of Finance
C. ICAI
D. Comptroller and Auditor General (CAG) of India
Answer: Option D
Solution (By JKSSB Mock Tests)
GASAB is under CAG to formulate accounting standards for government.

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Practice More Accountancy and Book Keeping Questions

Question #1
Budgetary control system involves:
A. Only preparing cash budget
B. Setting long-term objectives
C. Fixing selling price
D. Comparing actual figures with budgeted figures

Correct Answer: Option D


Explanation:
Budgetary control is the establishment of budgets relating to responsibilities of executives to the requirements of a policy and the continuous comparison of actual with budgeted results.

Question #2
The 'Reverse Charge Mechanism' (RCM) under GST applies when:
A. For exports
B. Only for imports
C. A registered person buys from another registered person
D. A registered person buys from an unregistered person (for specified goods/services)

Correct Answer: Option D


Explanation:
RCM is applicable in certain cases including supplies by unregistered persons to registered persons (though now mostly suspended except specific notified items). Also for specified services like legal, goods transport agency, etc.

Question #3
The term 'Window Dressing' in accounting refers to:
A. Decorating the office
B. Manipulation of financial statements to present a better picture
C. Maintaining proper records
D. Auditing process

Correct Answer: Option B


Explanation:
Window dressing is the act of manipulating financial data to make the company's financial position appear more favorable than it actually is.