Under the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971, the CAG audits the accounts of: MCQ with Answer and Explanation

Under the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971, the CAG audits the accounts of:
A. Union, State Governments, and Government Companies
B. Union, State Governments, Government Companies, and bodies substantially financed by the government
C. Union and State Governments only
D. Only the Union Government
Answer: Option B
Solution (By JKSSB Mock Tests)
The CAG's DPC Act, 1971, empowers the CAG to audit the Consolidated Fund of India and States, government companies, and any other bodies or authorities substantially financed by government grants or loans.

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Practice More Accountancy and Book Keeping Questions

Question #1
S1: GST is a destination-based consumption tax. S2: GST is levied only at the central level. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S2 only
C. S1 only
D. Both S1 and S2

Correct Answer: Option C


Explanation:
GST is a destination-based tax, meaning the revenue goes to the state where the goods are consumed, not where they are produced. It is a dual GST, levied by both the Centre (CGST) and States (SGST). S1 is correct, S2 is incorrect.

Question #2
The 'Exploration for and Evaluation of Mineral Resources' is covered by:
A. Ind AS 38
B. Ind AS 106
C. Ind AS 16
D. Ind AS 102

Correct Answer: Option B


Explanation:
Ind AS 106 deals with extractive industries.

Question #3
A 'Contra Entry' is recorded in:
A. Journal proper
B. Sales book
C. Purchase book
D. Cash book (with bank and cash columns)

Correct Answer: Option D


Explanation:
Contra entries (like cash deposited into bank) involve both cash and bank, recorded in cash book.