Which of the following is NOT an advantage of Zero Based Budgeting? MCQ with Answer and Explanation

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Which of the following is NOT an advantage of Zero Based Budgeting?

A. Prevents arbitrary budget inflation

B. Fosters efficient resource allocation

C. It is less time-consuming than traditional budgeting

D. Eliminates redundant expenses

Answer: Option C

Solution (By JKSSB Mock Tests)

ZBB is actually heavily time-consuming because it requires managers to justify every single expenditure from scratch annually.

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

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Question #1

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If a partner is guaranteed a minimum profit of ₹50,000 and his share of profit is ₹40,000, the deficiency of ₹10,000 will be borne by:

A. All partners equally

B. The guarantor partner(s)

C. The firm

D. The auditor

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Correct Answer: Option B

Explanation:
The deficiency in the guaranteed profit is borne by the partner(s) who gave the guarantee, in their profit-sharing ratio for the guarantee.

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

Question #2

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While passing an opening entry, if the total of liabilities exceeds the total of assets, the difference is debited to:

A. General Reserve

B. Capital Account

C. Goodwill Account

D. Suspense Account

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Correct Answer: Option C

Explanation:
If a business is acquired and liabilities exceed assets paid for, the difference is treated as the value paid for the firm's Goodwill.

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