Which of the following is not a component of budgetary control? MCQ with Answer and Explanation

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Which of the following is not a component of budgetary control?

A. Budgeting

B. Comparison of actuals with budgets

C. Corrective action

D. Tax filing

Answer: Option D

Solution (By JKSSB Mock Tests)

Budgetary control involves planning, measuring actual performance, comparing, and taking corrective action.

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

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Question #1

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If a cheque of Rs 1,000 is issued but recorded in the cash column of the Cash Book instead of the bank column, what is the effect on the bank balance?

A. No effect on any balance

B. Cash balance is overstated

C. Bank balance in Cash Book is overstated by Rs 1,000

D. Bank balance in Cash Book is understated by Rs 1,000

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Correct Answer: Option C

Explanation:
Since the bank column was not reduced (credited), the bank balance as per the Cash Book remains artificially high (overstated).

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

Question #2

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A 'Capital Reserve' can be used for:

A. Writing off revenue losses

B. Distribution of dividend

C. Issue of bonus shares

D. Payment of salaries

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Correct Answer: Option C

Explanation:
Capital reserve, generally, can be used for issuing fully paid bonus shares, not for dividend distribution (except some specific reserves).

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