Zero-Based Budgeting (ZBB) requires managers to: MCQ with Answer and Explanation

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Zero-Based Budgeting (ZBB) requires managers to:

A. Keep all expenses at zero

B. Justify every expense from scratch for every new period

C. Increase the budget by a flat zero percent

D. Base the new budget on last year's actuals

Answer: Option B

Solution (By JKSSB Mock Tests)

ZBB starts from a 'zero base', requiring a fresh justification for all funding rather than relying on historical data.

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

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Question #1

Social accounting is primarily concerned with:

A. Recording petty cash expenses

B. Calculating national income and economic performance of the country

C. Maximizing shareholder wealth

D. Minimizing corporate taxes

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Correct Answer: Option B

Explanation:
At a macro level, social accounting (or national income accounting) measures the economic activity, income, and expenditure of a nation.

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Question #2

Which of the following is an example of an 'Error of Commission'?

A. Entering Rs 4,500 instead of Rs 5,400 in an account

B. Recording a machinery purchase in the Purchases Account

C. Failing to record a transaction entirely

D. Two errors cancelling each other out

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Correct Answer: Option A

Explanation:
An error of commission involves incorrect casting, posting, or carry-forward, such as writing the wrong numerical amount.

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Question #3

In a single entry system, which accounts are usually maintained?

A. Only real and nominal accounts

B. All three types of accounts

C. Only personal accounts and cash book

D. All personal and real accounts

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Correct Answer: Option C

Explanation:
The single entry system is incomplete; typically, only personal accounts (debtors/creditors) and the cash book are fully maintained.

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