The process of critically reviewing a company's budget to justify every cost as if the activity is being undertaken for the first time is called: MCQ with Answer and Explanation

Question
The process of critically reviewing a company's budget to justify every cost as if the activity is being undertaken for the first time is called:
A. Master Budgeting
B. Flexible Budgeting
C. Performance Budgeting
D. Zero-Based Budgeting
Answer: Option D
Solution (By JKSSB Mock Tests)
Zero-Based Budgeting mandates that no budget base is carried forward automatically; everything must be justified from ground zero.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The 'Accounting Equation' remains intact under:
A. Double entry system
B. All systems
C. Single entry only
D. Cash system
Discuss
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Correct Answer: Option A

Explanation:
Double entry system always maintains the balance of accounting equation. Single entry does not.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Provisional Assessment' under GST can be requested when:
A. Audit is pending
B. Tax rate is not known
C. Return is delayed
D. Value of supply or rate of tax cannot be determined at the time of supply
Discuss
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Correct Answer: Option D

Explanation:
Provisional assessment under Section 60 allows payment of tax on a provisional basis when valuation/rate is uncertain.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Which accounting principle requires that the same accounting methods should be used from year to year?
A. Consistency
B. Accrual
C. Going concern
D. Materiality
Discuss
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Correct Answer: Option A

Explanation:
Consistency ensures comparability by applying same policies consistently.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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