The 'GST Compensation Cess' is levied to compensate states for: MCQ with Answer and Explanation

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The 'GST Compensation Cess' is levied to compensate states for:

A. Natural calamities

B. Loss of revenue due to GST implementation

C. Loan repayment

D. Excess expenditure

Answer: Option B

Solution (By JKSSB Mock Tests)

Compensation cess compensates states for revenue shortfall during the transition period.

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

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Question #1

The 'Price Earning' (P/E) ratio is calculated as:

A. Dividend / Market price

B. Earnings per share / Market price per share

C. Market price per share / Earnings per share

D. Market price / Book value

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Correct Answer: Option C

Explanation:
P/E ratio indicates how much investors are willing to pay per rupee of earnings.

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

Question #2

In government accounting under PFMS, what does the SNA model stand for?

A. State National Authority

B. Standard Nodal Account

C. Single Nodal Agency

D. System for National Audit

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Correct Answer: Option C

Explanation:
The Single Nodal Agency (SNA) model ensures states operate a single account for each Centrally Sponsored Scheme to prevent idle float of funds.

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Question #3

Amortisation is related to:

A. Fictitious assets only

B. Intangible assets

C. Current assets

D. Tangible assets

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Correct Answer: Option B

Explanation:
Amortisation is the systematic write-off of intangible assets like patents, copyrights.

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

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