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1. In the general concept of financial administration, 'economy' as a guiding principle means expenditure should:
- A. Be decided solely by the lowest-ranked clerk in the office
- B. Be increased every year regardless of usefulness
- C. Achieve the intended purpose at the lowest reasonable cost, avoiding wasteful or extravagant spending
- D. Always be reduced to zero regardless of actual departmental need
Answer: Achieve the intended purpose at the lowest reasonable cost, avoiding wasteful or extravagant spending
Explanation: Achieve the intended purpose at the lowest reasonable cost, avoiding wasteful or extravagant spending — verified fact for State Departmental Accounts Examination.
2. General financial rules typically require that any deviation from a prescribed financial rule or procedure be:
- A. Specifically sanctioned in advance by the competent higher authority empowered to relax that rule
- B. Never permitted to be recorded in any file
- C. Made freely by any employee without informing anyone
- D. Reported only after several years have passed
Answer: Specifically sanctioned in advance by the competent higher authority empowered to relax that rule
Explanation: Specifically sanctioned in advance by the competent higher authority empowered to relax that rule — verified fact for State Departmental Accounts Examination.
3. The general rationale for the Accountant General's office being kept administratively separate from the state Finance Department is to help ensure:
- A. That audit reports are never shared with the Legislature
- B. That the Finance Department has no budget responsibilities at all
- C. That the two offices never communicate with each other under any circumstances
- D. A degree of independence in the audit and accounting function from the executive that it audits
Answer: A degree of independence in the audit and accounting function from the executive that it audits
Explanation: A degree of independence in the audit and accounting function from the executive that it audits — verified fact for State Departmental Accounts Examination.
4. General financial rules regarding advances for departmental purchases (such as an advance to a purchasing officer) generally require that the advance be:
- A. Adjusted promptly against actual expenditure vouchers, with any unspent balance refunded
- B. Automatically written off without any vouchers
- C. Treated as a permanent personal gift to the purchasing officer
- D. Left unadjusted indefinitely with no follow-up required
Answer: Adjusted promptly against actual expenditure vouchers, with any unspent balance refunded
Explanation: Adjusted promptly against actual expenditure vouchers, with any unspent balance refunded — verified fact for State Departmental Accounts Examination.
5. A 'bank reconciliation statement' prepared for a government bank account is generally meant to:
- A. Determine the annual salary increment of bank staff
- B. Replace the need for maintaining a cash book altogether
- C. Calculate the interest owed to a private individual
- D. Reconcile the balance shown in departmental cash book records with the balance shown in the bank's own statement, explaining any difference
Answer: Reconcile the balance shown in departmental cash book records with the balance shown in the bank's own statement, explaining any difference
Explanation: Reconcile the balance shown in departmental cash book records with the balance shown in the bank's own statement, explaining any difference — verified fact for State Departmental Accounts Examination.
6. The general concept of 'cent per cent audit' in government auditing, as distinguished from test audit, refers to:
- A. Auditing only transactions that occurred on the 100th day of the year
- B. Examining every single transaction/voucher in a particular category, rather than only a sample
- C. An audit conducted by exactly one hundred officers
- D. An audit that covers exactly one hundred rupees only
Answer: Examining every single transaction/voucher in a particular category, rather than only a sample
Explanation: Examining every single transaction/voucher in a particular category, rather than only a sample — verified fact for State Departmental Accounts Examination.
7. When a government cheque is lost or stolen, general financial rules typically require the drawing officer to:
- A. Wait exactly one year before taking any action
- B. Promptly report the loss to the treasury/bank and request stop-payment, followed by issue of a duplicate as per procedure
- C. Ignore the loss completely since cheques cannot be misused
- D. Issue an unlimited number of duplicate cheques without any report
Answer: Promptly report the loss to the treasury/bank and request stop-payment, followed by issue of a duplicate as per procedure
Explanation: Promptly report the loss to the treasury/bank and request stop-payment, followed by issue of a duplicate as per procedure — verified fact for State Departmental Accounts Examination.
8. In the context of state government financial record-keeping, an 'audit trail' generally refers to:
- A. A physical walking path inside the treasury building
- B. A list of festival holidays observed by the treasury
- C. A record of employees' attendance only
- D. A chronological, traceable record of a transaction from its origin through processing to final accounting entry
Answer: A chronological, traceable record of a transaction from its origin through processing to final accounting entry
Explanation: A chronological, traceable record of a transaction from its origin through processing to final accounting entry — verified fact for State Departmental Accounts Examination.
9. General rules on government contracts typically require that a formal written agreement be executed mainly to:
- A. Avoid any accountability for either party
- B. Clearly define the rights, obligations, and terms binding both the government and the contracting party
- C. Ensure no record of the transaction survives
- D. Allow the contract terms to be changed verbally at any time without documentation
Answer: Clearly define the rights, obligations, and terms binding both the government and the contracting party
Explanation: Clearly define the rights, obligations, and terms binding both the government and the contracting party — verified fact for State Departmental Accounts Examination.
10. The general concept of 'imprest' in government office cash management refers to:
- A. A permanent personal gift to the officer with no accounting
- B. The entire annual budget of a department handed over in cash at once
- C. A fixed, relatively small sum of money placed at an officer's disposal to meet minor/contingent expenses, recouped periodically on production of vouchers
- D. A one-time payment that never needs to be accounted for
Answer: A fixed, relatively small sum of money placed at an officer's disposal to meet minor/contingent expenses, recouped periodically on production of vouchers
Explanation: A fixed, relatively small sum of money placed at an officer's disposal to meet minor/contingent expenses, recouped periodically on production of vouchers — verified fact for State Departmental Accounts Examination.
11. General financial rules typically prohibit which of the following practices in handling government cash?
- A. Maintaining a cash book to record receipts and payments
- B. Depositing surplus cash into the treasury/bank promptly
- C. Getting the cash balance verified periodically
- D. Mixing government cash with an official's personal money in the same cash chest
Answer: Mixing government cash with an official's personal money in the same cash chest
Explanation: Mixing government cash with an official's personal money in the same cash chest — verified fact for State Departmental Accounts Examination.
12. The general purpose of an 'expenditure control register' or similar register maintained by a Drawing and Disbursing Officer is to:
- A. Record only the personal leave taken by the officer
- B. Track the weather conditions at the office location
- C. List the names of visitors to the office each day
- D. Track expenditure against the sanctioned budget allotment on an ongoing basis to avoid exceeding it
Answer: Track expenditure against the sanctioned budget allotment on an ongoing basis to avoid exceeding it
Explanation: Track expenditure against the sanctioned budget allotment on an ongoing basis to avoid exceeding it — verified fact for State Departmental Accounts Examination.
13. Which of the following is generally treated as part of the 'Public Account' rather than the Consolidated Fund of a State?
- A. Land revenue collected as tax
- B. Stamp duty collected as tax
- C. Deposits and advances received in a trust or banker-like capacity by the government
- D. Sales tax/GST revenue collected by the state
Answer: Deposits and advances received in a trust or banker-like capacity by the government
Explanation: Deposits and advances received in a trust or banker-like capacity by the government — verified fact for State Departmental Accounts Examination.
14. Under the general concept of financial control, an 'Appropriation Audit' primarily verifies that:
- A. Expenditure has been incurred against the relevant grant/appropriation and within the amount authorised by the Legislature
- B. The number of trees planted by a department
- C. Only the physical attendance of employees in office
- D. The colour scheme used in government publicity posters
Answer: Expenditure has been incurred against the relevant grant/appropriation and within the amount authorised by the Legislature
Explanation: Expenditure has been incurred against the relevant grant/appropriation and within the amount authorised by the Legislature — verified fact for State Departmental Accounts Examination.
15. A government department's 'Detailed Demands for Grants', as distinguished from the summary Demand, generally provide:
- A. A list of employees eligible for promotion that year
- B. A summary of unrelated court judgments
- C. A more granular head-wise and scheme-wise breakup of the amounts sought under that Demand
- D. The personal contact numbers of departmental staff
Answer: A more granular head-wise and scheme-wise breakup of the amounts sought under that Demand
Explanation: A more granular head-wise and scheme-wise breakup of the amounts sought under that Demand — verified fact for State Departmental Accounts Examination.
16. The general concept of 'surprise check' conducted by a superior officer on cash/stores held by a subordinate is meant mainly to:
- A. Replace the need for any further audit permanently
- B. Give the subordinate advance warning so records can be prepared beforehand
- C. Determine the subordinate's personal opinions on state policy
- D. Verify, without advance notice, that actual cash/stock matches the recorded balances, deterring and detecting irregularities
Answer: Verify, without advance notice, that actual cash/stock matches the recorded balances, deterring and detecting irregularities
Explanation: Verify, without advance notice, that actual cash/stock matches the recorded balances, deterring and detecting irregularities — verified fact for State Departmental Accounts Examination.
17. General financial rules regarding retention of accounting records typically require vouchers and registers to be preserved for:
- A. Exactly one day before automatic destruction
- B. A prescribed minimum period sufficient to allow audit and verification, before any authorised destruction/weeding
- C. Forever, with no weeding ever permitted under any circumstances for any record
- D. Only until the responsible clerk retires, regardless of audit needs
Answer: A prescribed minimum period sufficient to allow audit and verification, before any authorised destruction/weeding
Explanation: A prescribed minimum period sufficient to allow audit and verification, before any authorised destruction/weeding — verified fact for State Departmental Accounts Examination.
18. A general principle in handling advances given to government employees (e.g., for house building or vehicle purchase) is that they should be secured, typically by:
- A. Transfer of the advance to a third party unrelated to the employee
- B. Immediate forgiveness of the entire advance upon disbursement
- C. A mortgage or hypothecation of the asset purchased, along with recovery in instalments from salary
- D. No security or recovery mechanism at all
Answer: A mortgage or hypothecation of the asset purchased, along with recovery in instalments from salary
Explanation: A mortgage or hypothecation of the asset purchased, along with recovery in instalments from salary — verified fact for State Departmental Accounts Examination.
19. The concept of 'qualifying service' for pension purposes generally refers to:
- A. The period of a government employee's service that counts, as per rules, towards pension entitlement
- B. Only the period an employee spent on unauthorised absence
- C. The employee's age at the time of initial recruitment only
- D. The number of promotions received, irrespective of years served
Answer: The period of a government employee's service that counts, as per rules, towards pension entitlement
Explanation: The period of a government employee's service that counts, as per rules, towards pension entitlement — verified fact for State Departmental Accounts Examination.
20. General financial rules on pension generally require the sanctioning authority to ensure that a retiring employee's pension is calculated based on:
- A. Verified length of qualifying service and last drawn/average emoluments as per applicable pension rules
- B. A random amount chosen without reference to service records
- C. The number of festival holidays taken during the career
- D. The personal wealth of the employee's family
Answer: Verified length of qualifying service and last drawn/average emoluments as per applicable pension rules
Explanation: Verified length of qualifying service and last drawn/average emoluments as per applicable pension rules — verified fact for State Departmental Accounts Examination.
21. The general concept of 'earnest money deposit' or 'security deposit' taken from a contractor/supplier by a government department mainly serves to:
- A. Provide financial protection to the government against default or non-performance by the contractor/supplier
- B. Guarantee the contractor a permanent government job
- C. Serve as a personal gift to the contracting officer
- D. Replace the need for any written contract
Answer: Provide financial protection to the government against default or non-performance by the contractor/supplier
Explanation: Provide financial protection to the government against default or non-performance by the contractor/supplier — verified fact for State Departmental Accounts Examination.
22. General financial rules typically require that a purchase of goods/services by a government office follow a process that ensures:
- A. Purchases exceed the sanctioned budget deliberately
- B. Purchases are always made from a single pre-decided vendor with no comparison whatsoever
- C. No record of the purchase needs to be kept
- D. Fairness, transparency, and reasonable competition to obtain value for money
Answer: Fairness, transparency, and reasonable competition to obtain value for money
Explanation: Fairness, transparency, and reasonable competition to obtain value for money — verified fact for State Departmental Accounts Examination.
23. An 'Inspection Report' issued by local audit parties of the Accountant General's office after visiting a department/treasury generally contains:
- A. A private opinion poll conducted among citizens
- B. Only a list of festival holidays for the coming year
- C. Recommendations for a new state flag design
- D. Observations on irregularities or weaknesses noticed, requiring the department's reply and corrective action
Answer: Observations on irregularities or weaknesses noticed, requiring the department's reply and corrective action
Explanation: Observations on irregularities or weaknesses noticed, requiring the department's reply and corrective action — verified fact for State Departmental Accounts Examination.
24. The general concept of 'materiality' in audit refers to the practice of:
- A. Ignoring every transaction regardless of amount
- B. Auditing only the physical building materials used in government offices
- C. Auditing only transactions in a specific font size
- D. Focusing audit attention on matters and amounts significant enough to influence financial reporting or decisions
Answer: Focusing audit attention on matters and amounts significant enough to influence financial reporting or decisions
Explanation: Focusing audit attention on matters and amounts significant enough to influence financial reporting or decisions — verified fact for State Departmental Accounts Examination.
25. When the CAG's audit reveals a significant financial irregularity in a state department, the general expected follow-up, beyond departmental reply, includes:
- A. Examination by the Public Accounts Committee, which may summon departmental officers and recommend further action
- B. Immediate transfer of the matter to a foreign court
- C. No action of any kind, since audit findings are purely advisory with no institutional follow-up
- D. Automatic dissolution of the State Legislature
Answer: Examination by the Public Accounts Committee, which may summon departmental officers and recommend further action
Explanation: Examination by the Public Accounts Committee, which may summon departmental officers and recommend further action — verified fact for State Departmental Accounts Examination.
26. A key general reason government audit places emphasis on 'vouchers' supporting a payment is that vouchers:
- A. Are required only for payments made in a leap year
- B. Are purely decorative and serve no evidentiary purpose
- C. Replace the need for any budget sanction at all
- D. Provide documentary evidence that the payment was actually due, made, and properly authorised
Answer: Provide documentary evidence that the payment was actually due, made, and properly authorised
Explanation: Provide documentary evidence that the payment was actually due, made, and properly authorised — verified fact for State Departmental Accounts Examination.
27. The general concept of 'test audit' or test-check, as sometimes used in government audit practice, refers to:
- A. Examining only transactions made in foreign currency
- B. Examining a representative sample of transactions/vouchers rather than every single one, due to volume constraints
- C. Auditing only transactions that occurred on a public holiday
- D. Testing the physical strength of treasury office furniture
Answer: Examining a representative sample of transactions/vouchers rather than every single one, due to volume constraints
Explanation: Examining a representative sample of transactions/vouchers rather than every single one, due to volume constraints — verified fact for State Departmental Accounts Examination.
28. The general concept of 'token payment' or advance payment against a bill pending full pre-check is generally used:
- A. Never, under any circumstances whatsoever
- B. Sparingly, in specific circumstances permitted by rule, with the detailed check to follow afterward
- C. For every single bill without exception, replacing pre-audit entirely
- D. Only for payments to foreign governments
Answer: Sparingly, in specific circumstances permitted by rule, with the detailed check to follow afterward
Explanation: Sparingly, in specific circumstances permitted by rule, with the detailed check to follow afterward — verified fact for State Departmental Accounts Examination.
29. A 'sub-treasury', where it exists below the district treasury level, generally functions to:
- A. Handle treasury business at a sub-divisional or local level, under the overall control of the district treasury
- B. Replace the State Legislature in passing the budget
- C. Conduct judicial appeals against treasury decisions
- D. Issue national passports
Answer: Handle treasury business at a sub-divisional or local level, under the overall control of the district treasury
Explanation: Handle treasury business at a sub-divisional or local level, under the overall control of the district treasury — verified fact for State Departmental Accounts Examination.
30. General concept: an 'Annual Plan' or scheme-wise outlay historically prepared alongside the state budget was mainly meant to detail:
- A. Criminal case pendency in state courts
- B. The results of the most recent state election
- C. The personal travel itinerary of the Chief Minister
- D. Proposed developmental expenditure and scheme allocations for the year
Answer: Proposed developmental expenditure and scheme allocations for the year
Explanation: Proposed developmental expenditure and scheme allocations for the year — verified fact for State Departmental Accounts Examination.
31. A 'ceiling' placed on a department's budget proposal by the Finance Department generally represents:
- A. A guarantee that the department will receive unlimited funds
- B. The exact amount the department must spend on stationery alone
- C. A permanent ban on the department ever spending any money
- D. An upper limit within which the department is expected to frame its budget estimates, reflecting overall resource constraints
Answer: An upper limit within which the department is expected to frame its budget estimates, reflecting overall resource constraints
Explanation: An upper limit within which the department is expected to frame its budget estimates, reflecting overall resource constraints — verified fact for State Departmental Accounts Examination.
32. The general rationale for requiring departments to submit budget estimates well in advance of the financial year is to allow time for:
- A. Ensuring the budget is announced only after the financial year has already ended
- B. Removing the need for the Finance Department to review anything
- C. Scrutiny, consolidation, and legislative approval before the year in which the money is actually to be spent begins
- D. Allowing departments unlimited time to avoid ever finalising a budget
Answer: Scrutiny, consolidation, and legislative approval before the year in which the money is actually to be spent begins
Explanation: Scrutiny, consolidation, and legislative approval before the year in which the money is actually to be spent begins — verified fact for State Departmental Accounts Examination.
33. In the general concept of budgetary classification, 'New Service' or 'New Instrument of Service' expenditure typically refers to expenditure that:
- A. Never requires any approval since it is automatically sanctioned
- B. Applies only to expenditure below a token nominal amount
- C. Is of a significant new nature not contemplated in the original budget, generally requiring prior specific legislative approval before incurring it
- D. Is identical to routine recurring expenditure already budgeted every year
Answer: Is of a significant new nature not contemplated in the original budget, generally requiring prior specific legislative approval before incurring it
Explanation: Is of a significant new nature not contemplated in the original budget, generally requiring prior specific legislative approval before incurring it — verified fact for State Departmental Accounts Examination.
34. When a Demand for Grants is placed before the State Legislature, members may move a 'cut motion' mainly to:
- A. Dissolve the State Legislature immediately
- B. Express disapproval of the policy, economy, or specific aspect underlying a demand, potentially seeking a reduction in the amount
- C. Increase every department's budget by a fixed percentage
- D. Automatically approve the entire budget without any discussion
Answer: Express disapproval of the policy, economy, or specific aspect underlying a demand, potentially seeking a reduction in the amount
Explanation: Express disapproval of the policy, economy, or specific aspect underlying a demand, potentially seeking a reduction in the amount — verified fact for State Departmental Accounts Examination.
35. A 'ways and means advance' arrangement between a state government and its banker (such as the Reserve Bank of India) is generally meant to help the state manage:
- A. Allocation of seats in the state legislature
- B. Temporary cash mismatches between receipts and expenditure
- C. Permanent write-off of all state debt
- D. Recruitment of civil service officers
Answer: Temporary cash mismatches between receipts and expenditure
Explanation: Temporary cash mismatches between receipts and expenditure — verified fact for State Departmental Accounts Examination.
36. The 'Economic Survey' or similar pre-budget economic review, where prepared at the state level, generally aims to:
- A. Serve only as a tourism brochure for the state
- B. Present an overview of the state's economic and fiscal performance to inform budget-making
- C. Announce criminal court verdicts
- D. Replace the budget itself, making legislative approval unnecessary
Answer: Present an overview of the state's economic and fiscal performance to inform budget-making
Explanation: Present an overview of the state's economic and fiscal performance to inform budget-making — verified fact for State Departmental Accounts Examination.
37. Government accounts for a financial year in India are generally compiled and closed for the period running from:
- A. 1st January to 31st December of the same calendar year
- B. 1st July to 30th June of the following year
- C. 1st October to 30th September of the following year
- D. 1st April to 31st March of the following year
Answer: 1st April to 31st March of the following year
Explanation: 1st April to 31st March of the following year — verified fact for State Departmental Accounts Examination.
38. The general concept of a 'nil report' or 'nil return' in departmental accounting reporting refers to:
- A. A report that is never required to be submitted under any circumstances
- B. A report containing only classified defence secrets
- C. A report submitted confirming that there was no transaction/figure to report for that period, so the reporting requirement is still fulfilled
- D. A report that automatically doubles a department's budget
Answer: A report submitted confirming that there was no transaction/figure to report for that period, so the reporting requirement is still fulfilled
Explanation: A report submitted confirming that there was no transaction/figure to report for that period, so the reporting requirement is still fulfilled — verified fact for State Departmental Accounts Examination.
39. 'Original accounts' compiled at the treasury level in the general accounting flow are subsequently sent to which office for consolidation into state accounts?
- A. The office of the Accountant General
- B. A private commercial bank's head office
- C. The office of the District Magistrate exclusively, with no further transmission
- D. The State Public Service Commission
Answer: The office of the Accountant General
Explanation: The office of the Accountant General — verified fact for State Departmental Accounts Examination.
40. In government accounting, 'Object Heads' (such as salaries, wages, office expenses) are generally used to classify expenditure by:
- A. The geographic direction of the office building
- B. The colour of the file cover used
- C. The primary economic nature or object of expenditure, cutting across different functional heads
- D. The religion of the employee receiving payment
Answer: The primary economic nature or object of expenditure, cutting across different functional heads
Explanation: The primary economic nature or object of expenditure, cutting across different functional heads — verified fact for State Departmental Accounts Examination.
41. A 'sub-head' in government accounts classification generally represents:
- A. A record of the total national population
- B. A scheme or activity within a Minor Head, providing a further level of detail
- C. An individual government employee's identity card number
- D. The topmost, broadest classification level above the Major Head
Answer: A scheme or activity within a Minor Head, providing a further level of detail
Explanation: A scheme or activity within a Minor Head, providing a further level of detail — verified fact for State Departmental Accounts Examination.
42. The general classification structure of government accounts (Major Head, Minor Head, Sub-Head, Detailed Head) mainly serves to:
- A. Decide the language used in official correspondence
- B. Enable systematic recording, budgeting, and reporting of receipts and expenditure by function and purpose
- C. Fix the boundaries of administrative districts
- D. Determine which employees receive promotions
Answer: Enable systematic recording, budgeting, and reporting of receipts and expenditure by function and purpose
Explanation: Enable systematic recording, budgeting, and reporting of receipts and expenditure by function and purpose — verified fact for State Departmental Accounts Examination.
43. Which of the following would most likely be recorded under the Public Account of a State rather than the Consolidated Fund?
- A. General tax revenue collected by the state
- B. Market loans raised by the state government
- C. Provident fund deposits of government employees
- D. Non-tax revenue receipts of a department
Answer: Provident fund deposits of government employees
Explanation: Provident fund deposits of government employees — verified fact for State Departmental Accounts Examination.
44. A 'Contingency Fund' of a State is generally described as being 'in the nature of':
- A. A permanent gift fund with no accountability whatsoever
- B. A fund that replaces the Consolidated Fund entirely
- C. A fund used exclusively for the Governor's personal travel expenses
- D. An imprest, placed at the disposal of the Governor to meet unforeseen expenditure pending legislative authorisation
Answer: An imprest, placed at the disposal of the Governor to meet unforeseen expenditure pending legislative authorisation
Explanation: An imprest, placed at the disposal of the Governor to meet unforeseen expenditure pending legislative authorisation — verified fact for State Departmental Accounts Examination.
45. General financial rules typically require every government officer handling public money to maintain accounts and records so that they are:
- A. Destroyed immediately after each transaction to save space
- B. Written only in an unrecorded verbal form
- C. Available for audit and inspection, and clearly show how public money was received and spent
- D. Kept permanently secret from every auditor without exception
Answer: Available for audit and inspection, and clearly show how public money was received and spent
Explanation: Available for audit and inspection, and clearly show how public money was received and spent — verified fact for State Departmental Accounts Examination.
46. The general concept of 'competent authority' in financial rules refers to:
- A. The authority (officer or body) who, under the rules or by delegation, is empowered to sanction a particular matter
- B. A person with no defined power or role whatsoever
- C. An authority that exists only in a foreign country
- D. Any random member of the public who happens to be present
Answer: The authority (officer or body) who, under the rules or by delegation, is empowered to sanction a particular matter
Explanation: The authority (officer or body) who, under the rules or by delegation, is empowered to sanction a particular matter — verified fact for State Departmental Accounts Examination.
47. General service rules typically require government servants to exercise financial powers vested in them:
- A. Only when explicitly bribed to do so
- B. Without any regard to rules whenever no one is watching
- C. Only for personal financial benefit whenever convenient
- D. Honestly, with due diligence, and strictly for the public interest and within the scope of their delegated authority
Answer: Honestly, with due diligence, and strictly for the public interest and within the scope of their delegated authority
Explanation: Honestly, with due diligence, and strictly for the public interest and within the scope of their delegated authority — verified fact for State Departmental Accounts Examination.
48. General financial rules typically require that a loss of government money, however caused, be reported to higher authorities:
- A. Only once every ten years, regardless of when detected
- B. Never, since losses are considered a purely private matter
- C. Immediately/without delay upon detection, regardless of the amount involved in serious cases
- D. Only if the amount lost exceeds the entire annual state budget
Answer: Immediately/without delay upon detection, regardless of the amount involved in serious cases
Explanation: Immediately/without delay upon detection, regardless of the amount involved in serious cases — verified fact for State Departmental Accounts Examination.
49. 'Write-off' of an irrecoverable government loss (such as an unrecoverable advance) generally requires:
- A. Approval solely from a private newspaper editor
- B. Sanction from a competent authority, after due examination establishing that recovery is genuinely not possible
- C. No sanction of any kind, since any clerk may write off any amount at will
- D. Automatic write-off after exactly one working day with no examination
Answer: Sanction from a competent authority, after due examination establishing that recovery is genuinely not possible
Explanation: Sanction from a competent authority, after due examination establishing that recovery is genuinely not possible — verified fact for State Departmental Accounts Examination.
50. When a case of suspected misappropriation of government money is detected, the general expected course of action includes:
- A. Concealing the matter permanently and taking no action whatsoever
- B. Simply destroying all related records without any inquiry
- C. Prompt reporting to the appropriate higher authority and initiation of an inquiry, along with steps to fix responsibility and recover the loss
- D. Immediately promoting the employee under suspicion
Answer: Prompt reporting to the appropriate higher authority and initiation of an inquiry, along with steps to fix responsibility and recover the loss
Explanation: Prompt reporting to the appropriate higher authority and initiation of an inquiry, along with steps to fix responsibility and recover the loss — verified fact for State Departmental Accounts Examination.
51. In general government financial administration, the term 'misappropriation' refers to:
- A. A scheduled and approved budget re-appropriation
- B. A minor typographical error in a government file
- C. Wrongful or fraudulent use of government money or property for a purpose other than that for which it was intended
- D. The correct and authorised use of government money as per sanctioned budget
Answer: Wrongful or fraudulent use of government money or property for a purpose other than that for which it was intended
Explanation: Wrongful or fraudulent use of government money or property for a purpose other than that for which it was intended — verified fact for State Departmental Accounts Examination.
52. General financial rules on advances (such as travel or festival advances) to government employees generally require that such advances be:
- A. Automatically converted into a permanent gift after one day
- B. Never recovered under any circumstances once disbursed
- C. Recovered/adjusted in instalments from the employee's salary or against submission of relevant bills, as prescribed
- D. Given without any sanction or record of the recipient
Answer: Recovered/adjusted in instalments from the employee's salary or against submission of relevant bills, as prescribed
Explanation: Recovered/adjusted in instalments from the employee's salary or against submission of relevant bills, as prescribed — verified fact for State Departmental Accounts Examination.
53. Maintenance of a 'service book' for a government employee is generally meant to record:
- A. Only the employee's personal diary of daily thoughts
- B. Key service events such as appointment, increments, leave, promotions, and other details relevant to pay and pension
- C. Only complaints filed against the employee by the public
- D. The employee's private family photographs
Answer: Key service events such as appointment, increments, leave, promotions, and other details relevant to pay and pension
Explanation: Key service events such as appointment, increments, leave, promotions, and other details relevant to pay and pension — verified fact for State Departmental Accounts Examination.
54. A general principle followed before a bill is passed for payment at the treasury/PAO level is verifying that:
- A. The payee's personal religious beliefs are recorded
- B. Sufficient budget provision exists under the relevant head and the bill is properly sanctioned and in order
- C. The bill is written only in a specific font colour
- D. The payee has never taken any government job before
Answer: Sufficient budget provision exists under the relevant head and the bill is properly sanctioned and in order
Explanation: Sufficient budget provision exists under the relevant head and the bill is properly sanctioned and in order — verified fact for State Departmental Accounts Examination.
55. The general concept of a 'Drawing and Disbursing Officer' (DDO) in government financial administration is an officer who is authorised to:
- A. Draw money from the treasury/bank against bills and disburse it for authorised government expenditure
- B. Conduct elections within their department
- C. Only draw artistic sketches for government publicity material
- D. Preside over judicial proceedings in a court of law
Answer: Draw money from the treasury/bank against bills and disburse it for authorised government expenditure
Explanation: Draw money from the treasury/bank against bills and disburse it for authorised government expenditure — verified fact for State Departmental Accounts Examination.
56. A 'treasury bill' in general public finance terminology refers to:
- A. A bill presented only for purchase of stationery items
- B. A restaurant receipt submitted for reimbursement by a government employee
- C. A permanent, non-repayable grant given to a state government
- D. A short-term government debt/borrowing instrument used to manage short-term cash requirements
Answer: A short-term government debt/borrowing instrument used to manage short-term cash requirements
Explanation: A short-term government debt/borrowing instrument used to manage short-term cash requirements — verified fact for State Departmental Accounts Examination.
57. A 'cheque'-based payment system in government treasury operations generally allows a Drawing and Disbursing Officer to:
- A. Draw money from the treasury/bank account by issuing cheques against sanctioned budget provision, for authorised payments
- B. Personally retain all government cash withdrawn without any accounting
- C. Bypass all budget provisions and spend without any sanction
- D. Print unlimited currency notes directly from their own office
Answer: Draw money from the treasury/bank account by issuing cheques against sanctioned budget provision, for authorised payments
Explanation: Draw money from the treasury/bank account by issuing cheques against sanctioned budget provision, for authorised payments — verified fact for State Departmental Accounts Examination.
58. 'Provident Fund accounting' in government generally requires which of the following?
- A. Allowing withdrawals with absolutely no record-keeping of any kind
- B. Recording only the total fund balance for the entire state with no individual employee detail at all
- C. Crediting interest only once in an employee's entire career
- D. Maintaining individual subscriber accounts showing subscriptions, interest credited, and withdrawals/advances, with an annual statement to the subscriber
Answer: Maintaining individual subscriber accounts showing subscriptions, interest credited, and withdrawals/advances, with an annual statement to the subscriber
Explanation: Maintaining individual subscriber accounts showing subscriptions, interest credited, and withdrawals/advances, with an annual statement to the subscriber — verified fact for State Departmental Accounts Examination.
59. Pension accounting for retired state government employees generally involves recording:
- A. The periodic pension payments made to eligible retired employees or their pensioners, as a charge on government funds
- B. The private business investments of a retired employee
- C. Only salary drawn while the employee was still actively serving
- D. Only the cost of the retirement farewell party for each employee
Answer: The periodic pension payments made to eligible retired employees or their pensioners, as a charge on government funds
Explanation: The periodic pension payments made to eligible retired employees or their pensioners, as a charge on government funds — verified fact for State Departmental Accounts Examination.
60. A General Provident Fund (GPF), as generally applicable to eligible state government employees, is primarily a scheme where:
- A. The government pays the employee's entire salary in advance for their whole career
- B. Employees must deposit their fund contribution in a private company chosen at random
- C. A portion of the employee's salary is compulsorily deducted and credited to their fund account, accumulating with interest, payable mainly on retirement/exit
- D. The fund balance is forfeited entirely if the employee ever takes leave
Answer: A portion of the employee's salary is compulsorily deducted and credited to their fund account, accumulating with interest, payable mainly on retirement/exit
Explanation: A portion of the employee's salary is compulsorily deducted and credited to their fund account, accumulating with interest, payable mainly on retirement/exit — verified fact for State Departmental Accounts Examination.
61. The general concept of 'financial propriety' expects a government officer sanctioning expenditure to ensure that the expenditure is:
- A. Not more than the occasion demands, and results in a genuine public benefit commensurate with the cost
- B. Approved without checking whether it is actually needed
- C. Always exactly equal to the previous year's expenditure, with no variation permitted
- D. Spent primarily for the personal benefit of the sanctioning officer
Answer: Not more than the occasion demands, and results in a genuine public benefit commensurate with the cost
Explanation: Not more than the occasion demands, and results in a genuine public benefit commensurate with the cost — verified fact for State Departmental Accounts Examination.
62. General Financial Rules typically require that government expenditure be incurred with due regard to which broad principle?
- A. Economy, and the same degree of care that a prudent person would exercise with their own money
- B. Maximising expenditure regardless of actual need
- C. Avoiding any form of record-keeping to save paper
- D. Spending the entire allotted budget within the very first week of the year
Answer: Economy, and the same degree of care that a prudent person would exercise with their own money
Explanation: Economy, and the same degree of care that a prudent person would exercise with their own money — verified fact for State Departmental Accounts Examination.
63. The general purpose of fixing different financial powers for different levels of officers (without needing to cite a specific numeric limit) is to:
- A. Ensure that no officer at any level can ever approve any expenditure
- B. Enable faster decision-making at appropriate levels while maintaining accountability and control over higher-value expenditure
- C. Guarantee that only elected legislators can sign routine office bills
- D. Remove the need for any financial rules altogether
Answer: Enable faster decision-making at appropriate levels while maintaining accountability and control over higher-value expenditure
Explanation: Enable faster decision-making at appropriate levels while maintaining accountability and control over higher-value expenditure — verified fact for State Departmental Accounts Examination.
64. 'Delegation of financial powers' within state government generally refers to:
- A. A rule that only the Governor may ever sign any government cheque personally
- B. Transfer of all financial authority permanently to a single peon in the office
- C. Distribution of authority to sanction expenditure up to specified monetary limits among different levels of officers
- D. Complete abolition of all financial rules in the state
Answer: Distribution of authority to sanction expenditure up to specified monetary limits among different levels of officers
Explanation: Distribution of authority to sanction expenditure up to specified monetary limits among different levels of officers — verified fact for State Departmental Accounts Examination.
65. A general concept behind 'cash book' maintenance at a treasury or drawing and disbursing office is that it should:
- A. Record every receipt and payment of cash chronologically and be closed and verified regularly (such as daily)
- B. Never be checked or verified by any officer
- C. Be updated only once every ten years
- D. Record only transactions above a very large arbitrary amount and ignore all others
Answer: Record every receipt and payment of cash chronologically and be closed and verified regularly (such as daily)
Explanation: Record every receipt and payment of cash chronologically and be closed and verified regularly (such as daily) — verified fact for State Departmental Accounts Examination.
66. A 'stock verification' or physical verification of government stores, as a general audit/internal-control practice, is meant mainly to:
- A. Confirm that physical stock actually matches recorded stock ledger balances, and detect shortages or discrepancies
- B. Fix the salary of the head of department
- C. Determine the personal taste of the store-keeper in furniture
- D. Replace the need for maintaining any stock records at all
Answer: Confirm that physical stock actually matches recorded stock ledger balances, and detect shortages or discrepancies
Explanation: Confirm that physical stock actually matches recorded stock ledger balances, and detect shortages or discrepancies — verified fact for State Departmental Accounts Examination.
67. The CAG's audit of state government expenditure primarily helps the State Legislature by:
- A. Selecting candidates to contest state elections
- B. Appointing new ministers to the state cabinet
- C. Drafting new bills for the Legislature to pass
- D. Providing an independent assessment of whether public money was spent as authorised and with due economy and propriety
Answer: Providing an independent assessment of whether public money was spent as authorised and with due economy and propriety
Explanation: Providing an independent assessment of whether public money was spent as authorised and with due economy and propriety — verified fact for State Departmental Accounts Examination.
68. Which constitutional body is primarily responsible for auditing the accounts of both the Union Government and every State Government in India?
- A. The State Election Commission
- B. The State Human Rights Commission
- C. The Comptroller and Auditor General of India (CAG)
- D. The State Public Service Commission
Answer: The Comptroller and Auditor General of India (CAG)
Explanation: The Comptroller and Auditor General of India (CAG) — verified fact for State Departmental Accounts Examination.
69. A general principle of internal control in handling government money is that the same person should generally not:
- A. Be required to sign any document under any circumstances
- B. Be permitted to take annual leave in any year
- C. Ever be allowed to work in any government office at all
- D. Both sanction a payment and also handle/disburse the actual cash for it, so as to maintain separation of duties
Answer: Both sanction a payment and also handle/disburse the actual cash for it, so as to maintain separation of duties
Explanation: Both sanction a payment and also handle/disburse the actual cash for it, so as to maintain separation of duties — verified fact for State Departmental Accounts Examination.
70. Internal check/internal control within a government department, as distinguished from external audit, generally refers to:
- A. Procedures built into the department's own working (such as division of duties) to prevent and detect errors or irregularities
- B. A court proceeding initiated against the department
- C. An audit conducted exclusively by the CAG's office and never by the department itself
- D. A system that has no relation whatsoever to preventing financial errors
Answer: Procedures built into the department's own working (such as division of duties) to prevent and detect errors or irregularities
Explanation: Procedures built into the department's own working (such as division of duties) to prevent and detect errors or irregularities — verified fact for State Departmental Accounts Examination.
71. 'Compliance audit' (regularity audit) by the Accountant General primarily checks whether transactions:
- A. Conform to the applicable laws, rules, and orders governing government financial transactions
- B. Involved only cash and no other mode of payment
- C. Were approved by a private citizen with no government role
- D. Occurred exactly at midnight on a specific date
Answer: Conform to the applicable laws, rules, and orders governing government financial transactions
Explanation: Conform to the applicable laws, rules, and orders governing government financial transactions — verified fact for State Departmental Accounts Examination.
72. 'Propriety audit', as one dimension of government audit, examines whether expenditure:
- A. Was announced on television before being sanctioned
- B. Was written using a particular font in the government file
- C. Was approved by a private company's board of directors
- D. Was incurred with due regard to public interest, economy, and standards of financial propriety, beyond mere rule-compliance
Answer: Was incurred with due regard to public interest, economy, and standards of financial propriety, beyond mere rule-compliance
Explanation: Was incurred with due regard to public interest, economy, and standards of financial propriety, beyond mere rule-compliance — verified fact for State Departmental Accounts Examination.
73. Persistently unsettled or long-pending audit paras in a department are generally considered a matter of concern mainly because they may indicate:
- A. That the Legislature has been permanently dissolved
- B. Continuing financial irregularity, weak internal controls, or delay in corrective/recovery action
- C. That the audit itself was conducted illegally
- D. That the department has performed exceptionally well and needs no further review
Answer: Continuing financial irregularity, weak internal controls, or delay in corrective/recovery action
Explanation: Continuing financial irregularity, weak internal controls, or delay in corrective/recovery action — verified fact for State Departmental Accounts Examination.
74. 'Settlement' of an audit para or objection generally occurs when:
- A. The department simply stops replying to any further correspondence
- B. The Accountant General's office is satisfied with the department's explanation, corrective action, or recovery made, and closes the objection
- C. Exactly one calendar year has passed since the para was raised
- D. A newspaper stops reporting on the matter
Answer: The Accountant General's office is satisfied with the department's explanation, corrective action, or recovery made, and closes the objection
Explanation: The Accountant General's office is satisfied with the department's explanation, corrective action, or recovery made, and closes the objection — verified fact for State Departmental Accounts Examination.
75. When an audit para is issued to a department, the department is generally expected to:
- A. Forward it directly to a foreign embassy for comment
- B. Ignore it permanently with no response required
- C. Immediately dissolve the entire department
- D. Furnish a suitable reply/explanation and take corrective action, working towards settlement of the objection
Answer: Furnish a suitable reply/explanation and take corrective action, working towards settlement of the objection
Explanation: Furnish a suitable reply/explanation and take corrective action, working towards settlement of the objection — verified fact for State Departmental Accounts Examination.
76. An 'audit objection' or 'audit para' raised by the Accountant General's office generally refers to:
- A. A press release announcing a new government scheme
- B. A formal criminal charge filed directly in a court of law
- C. A personal letter of congratulations to the department
- D. A specific point of irregularity, discrepancy, or rule-violation noticed during audit, requiring explanation or corrective action from the department
Answer: A specific point of irregularity, discrepancy, or rule-violation noticed during audit, requiring explanation or corrective action from the department
Explanation: A specific point of irregularity, discrepancy, or rule-violation noticed during audit, requiring explanation or corrective action from the department — verified fact for State Departmental Accounts Examination.
77. Compared to pre-audit, one general characteristic of post-audit is that it:
- A. Cannot itself prevent an irregular payment from being made, but can help detect it and recommend corrective/recovery action
- B. Is legally impossible for any government department to conduct
- C. Always physically stops a payment before it is disbursed, in every case
- D. Requires no examination of records or vouchers whatsoever
Answer: Cannot itself prevent an irregular payment from being made, but can help detect it and recommend corrective/recovery action
Explanation: Cannot itself prevent an irregular payment from being made, but can help detect it and recommend corrective/recovery action — verified fact for State Departmental Accounts Examination.
78. The general concept of 'post-audit' in government financial control refers to:
- A. Examination of transactions after payment has already been made, to verify regularity and propriety
- B. An audit exclusively of transactions that never actually occurred
- C. An audit that is conducted only verbally with no written record
- D. Examination of a transaction before any payment has been sanctioned
Answer: Examination of transactions after payment has already been made, to verify regularity and propriety
Explanation: Examination of transactions after payment has already been made, to verify regularity and propriety — verified fact for State Departmental Accounts Examination.
79. The general concept of 'pre-audit' in government financial control refers to:
- A. Checking a transaction only several years after payment has been made
- B. An audit conducted solely by a private newspaper reporter
- C. Checking a bill or transaction for correctness and rule-compliance before the payment is actually made
- D. Auditing only the personal life of the payee
Answer: Checking a bill or transaction for correctness and rule-compliance before the payment is actually made
Explanation: Checking a bill or transaction for correctness and rule-compliance before the payment is actually made — verified fact for State Departmental Accounts Examination.
80. After a CAG audit report on state accounts is laid before the State Legislature, it is typically examined in detail by:
- A. A private chartered accountancy firm hired independently
- B. The Public Accounts Committee (PAC) of the State Legislature
- C. The Union Ministry of External Affairs
- D. The Reserve Bank of India's board of directors
Answer: The Public Accounts Committee (PAC) of the State Legislature
Explanation: The Public Accounts Committee (PAC) of the State Legislature — verified fact for State Departmental Accounts Examination.
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