Under the Companies Act 2013, the 'Serious Fraud Investigation Office' (SFIO) is empowered to investigate frauds that are: MCQ with Answer and Explanation

Under the Companies Act 2013, the 'Serious Fraud Investigation Office' (SFIO) is empowered to investigate frauds that are:
A. Above ₹10 Crores or involving public interest
B. Involving public interest
C. Only related to listed companies
D. Of any amount
Answer: Option A
Solution (By JKSSB Mock Tests)
As per the Companies Act and related notifications, the SFIO (now often operating under the EBOW) investigates cases involving ₹10 Crores or more, or cases that involve public interest, or affect multiple states.

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Practice More Accountancy and Book Keeping Questions

Question #1
Input Tax Credit under GST can be claimed on:
A. Membership of club
B. Food and beverages for employees
C. Motor vehicles for personal use
D. Goods used for business furtherance

Correct Answer: Option D


Explanation:
ITC is available only for inputs used in the course of business, subject to conditions in CGST Act.

Question #2
Under the accrual basis of accounting, expenses are recognized when they are:
A. Paid in cash
B. Approved by management
C. Budgeted
D. Incurred

Correct Answer: Option D


Explanation:
The accrual concept dictates that expenses are recognized when incurred, regardless of when the cash is actually paid.

Question #3
In cost accounting, 'Cost Unit' means:
A. An expense head
B. A unit of product or service for which cost is ascertained
C. A location where costs are incurred
D. A group of costs

Correct Answer: Option B


Explanation:
Cost unit is a quantitative unit of product or service for which costs are determined, e.g., per ton, per km.