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81. Under Article 151(2) of the Constitution, the audit reports of the CAG relating to the accounts of a State are submitted to:
- A. Directly to the Supreme Court for a criminal verdict
- B. Directly to a private newspaper for publication before the Legislature sees it
- C. The Governor of the State, who causes them to be laid before the State Legislature
- D. Directly to the President of the United States
Answer: The Governor of the State, who causes them to be laid before the State Legislature
Explanation: The Governor of the State, who causes them to be laid before the State Legislature — verified fact for State Departmental Accounts Examination.
82. The Comptroller and Auditor General of India (CAG) derives authority to audit the accounts of the Union and the States mainly from:
- A. An international treaty with a foreign government
- B. A private contract signed between the CAG and each state government
- C. The Constitution of India, particularly Articles 148 to 151, along with the CAG's (Duties, Powers and Conditions of Service) Act, 1971
- D. An executive order that can be withdrawn by any Chief Minister at will
Answer: The Constitution of India, particularly Articles 148 to 151, along with the CAG's (Duties, Powers and Conditions of Service) Act, 1971
Explanation: The Constitution of India, particularly Articles 148 to 151, along with the CAG's (Duties, Powers and Conditions of Service) Act, 1971 — verified fact for State Departmental Accounts Examination.
83. One of the general functions traditionally associated with the Accountant General's office is:
- A. Compilation of the state's Finance Accounts and Appropriation Accounts from treasury and departmental figures
- B. Framing the state's criminal laws
- C. Conducting elections to the state legislature
- D. Issuing driving licences to citizens
Answer: Compilation of the state's Finance Accounts and Appropriation Accounts from treasury and departmental figures
Explanation: Compilation of the state's Finance Accounts and Appropriation Accounts from treasury and departmental figures — verified fact for State Departmental Accounts Examination.
84. The office of the Accountant General functions under the constitutional authority and overall superintendence of:
- A. The Chief Minister of the State personally
- B. The State Public Service Commission
- C. The Comptroller and Auditor General of India (CAG)
- D. The State Election 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.
85. The Accountant General (AG) of a State primarily functions as the head of:
- A. The state's police department
- B. The state's Public Works Department construction wing
- C. The office responsible for compiling state accounts and conducting audit, under the overall superintendence of the CAG
- D. The state cabinet secretariat
Answer: The office responsible for compiling state accounts and conducting audit, under the overall superintendence of the CAG
Explanation: The office responsible for compiling state accounts and conducting audit, under the overall superintendence of the CAG — verified fact for State Departmental Accounts Examination.
86. Modernisation of the treasury system in many Indian states, through computerisation, has mainly aimed to:
- A. Replace the State Legislature's budget approval role
- B. Eliminate the need for any government accounts altogether
- C. Improve speed, transparency, and accuracy of processing bills, payments, and generating accounts
- D. Abolish the office of the Accountant General
Answer: Improve speed, transparency, and accuracy of processing bills, payments, and generating accounts
Explanation: Improve speed, transparency, and accuracy of processing bills, payments, and generating accounts — verified fact for State Departmental Accounts Examination.
87. In the general treasury system, bills for payment presented by government offices are typically first checked at the treasury for:
- A. Availability of budget provision, arithmetical accuracy, and compliance with prescribed rules before payment
- B. The personal astrological chart of the drawing officer
- C. The political affiliation of the payee
- D. The height and weight of the applicant
Answer: Availability of budget provision, arithmetical accuracy, and compliance with prescribed rules before payment
Explanation: Availability of budget provision, arithmetical accuracy, and compliance with prescribed rules before payment — verified fact for State Departmental Accounts Examination.
88. A District Treasury in the general state treasury system primarily functions to:
- A. Conduct judicial trials at the district level
- B. Draft state legislation for the assembly
- C. Handle receipt and disbursement of government money at the district level, and maintain related initial accounts
- D. Issue passports to citizens
Answer: Handle receipt and disbursement of government money at the district level, and maintain related initial accounts
Explanation: Handle receipt and disbursement of government money at the district level, and maintain related initial accounts — verified fact for State Departmental Accounts Examination.
89. 'Revenue deficit' in general budgetary terms refers to a situation where:
- A. Capital expenditure exceeds capital receipts only
- B. There is absolutely no expenditure by the government at all
- C. Revenue expenditure exceeds revenue receipts
- D. Revenue receipts always exceed revenue expenditure by definition
Answer: Revenue expenditure exceeds revenue receipts
Explanation: Revenue expenditure exceeds revenue receipts — verified fact for State Departmental Accounts Examination.
90. 'Fiscal deficit' of a state, in general budgetary terms, refers to:
- A. The excess of total expenditure over total non-debt receipts, indicating the total borrowing requirement
- B. The total salary bill of the state government only
- C. The number of vacant posts in a department
- D. The total amount of money physically stored in state treasuries
Answer: The excess of total expenditure over total non-debt receipts, indicating the total borrowing requirement
Explanation: The excess of total expenditure over total non-debt receipts, indicating the total borrowing requirement — verified fact for State Departmental Accounts Examination.
91. The role of the Finance Department in scrutinising departmental budget proposals mainly involves checking that:
- A. The Governor's personal preferences alone decide every allocation
- B. Estimates are realistic, properly classified, and consistent with overall fiscal priorities and resource availability
- C. Every department gets exactly the same budget regardless of need
- D. No scrutiny is required and all proposals are approved automatically
Answer: Estimates are realistic, properly classified, and consistent with overall fiscal priorities and resource availability
Explanation: Estimates are realistic, properly classified, and consistent with overall fiscal priorities and resource availability — verified fact for State Departmental Accounts Examination.
92. A 'Token Grant' or nominal token demand is generally sought from the Legislature mainly to:
- A. Bypass the Finance Department entirely
- B. Grant the department unlimited spending power for the year
- C. Enable expenditure to be met by re-appropriation from other heads, where a new scheme is being started without needing a large fresh allocation
- D. Permanently replace the need for a full Demand for Grants forever
Answer: Enable expenditure to be met by re-appropriation from other heads, where a new scheme is being started without needing a large fresh allocation
Explanation: Enable expenditure to be met by re-appropriation from other heads, where a new scheme is being started without needing a large fresh allocation — verified fact for State Departmental Accounts Examination.
93. The general concept of 'lapse of grant' at the end of the financial year means that:
- A. The department is permanently barred from ever receiving a budget again
- B. An unspent grant generally cannot be carried forward automatically to the next year without fresh authorisation
- C. Every unspent grant is automatically doubled the following year
- D. Unspent grants must be distributed as bonuses to staff
Answer: An unspent grant generally cannot be carried forward automatically to the next year without fresh authorisation
Explanation: An unspent grant generally cannot be carried forward automatically to the next year without fresh authorisation — verified fact for State Departmental Accounts Examination.
94. Large anticipated savings under a grant should generally be reported promptly to the Finance Department mainly so that:
- A. No further budgetary action is ever required in such cases
- B. The funds can be surrendered in time and possibly re-appropriated to meet needs elsewhere before the year closes
- C. The savings can be transferred to the personal account of the head of department
- D. The department can be immediately dissolved as a penalty
Answer: The funds can be surrendered in time and possibly re-appropriated to meet needs elsewhere before the year closes
Explanation: The funds can be surrendered in time and possibly re-appropriated to meet needs elsewhere before the year closes — verified fact for State Departmental Accounts Examination.
95. 'Savings' in government budget terminology generally refer to:
- A. The total revenue collected by the Income Tax Department
- B. The unspent balance of an authorised grant or appropriation at the end of the financial year
- C. A fixed percentage bonus paid to every department automatically
- D. Money saved personally by a government employee in a bank deposit
Answer: The unspent balance of an authorised grant or appropriation at the end of the financial year
Explanation: The unspent balance of an authorised grant or appropriation at the end of the financial year — verified fact for State Departmental Accounts Examination.
96. An 'Annual Financial Statement' presented to the Legislature, as contemplated for state budgets, contains estimated receipts and expenditure for:
- A. A period of exactly one hundred years
- B. The entire preceding decade retrospectively
- C. The forthcoming financial year
- D. Only the current day of presentation
Answer: The forthcoming financial year
Explanation: The forthcoming financial year — verified fact for State Departmental Accounts Examination.
97. Performance-based or outcome budgeting in government aims mainly to link budget allocations to:
- A. The personal preferences of individual clerks
- B. Measurable physical and financial performance/outcomes of schemes and programmes
- C. The number of files physically stored in a department
- D. The seniority list of employees in a department
Answer: Measurable physical and financial performance/outcomes of schemes and programmes
Explanation: Measurable physical and financial performance/outcomes of schemes and programmes — verified fact for State Departmental Accounts Examination.
98. 'Zero-Based Budgeting' as a budgeting approach requires each scheme/expenditure item to be:
- A. Permanently frozen at the amount fixed in the very first budget ever prepared
- B. Justified afresh each year on its own merits, rather than simply carrying forward the previous year's allocation
- C. Decided solely by lottery among departments
- D. Automatically doubled every year with no justification needed
Answer: Justified afresh each year on its own merits, rather than simply carrying forward the previous year's allocation
Explanation: Justified afresh each year on its own merits, rather than simply carrying forward the previous year's allocation — verified fact for State Departmental Accounts Examination.
99. The general concept behind classifying budget heads as 'Plan' and 'Non-Plan' historically (or now under a revised capital/revenue framework) was mainly to distinguish:
- A. Expenditure in urban areas from expenditure in rural areas only
- B. New developmental/scheme-related expenditure from routine ongoing committed expenditure
- C. Expenditure approved by courts from all other expenditure
- D. Expenditure incurred by men from expenditure incurred by women
Answer: New developmental/scheme-related expenditure from routine ongoing committed expenditure
Explanation: New developmental/scheme-related expenditure from routine ongoing committed expenditure — verified fact for State Departmental Accounts Examination.
100. An 'excess grant', where actual expenditure under a grant exceeds the amount authorised by the Legislature, generally requires:
- A. Immediate dissolution of the State Legislature
- B. No action at all, since excess expenditure is automatically legal
- C. Regularisation by the Legislature after the fact, typically following examination by the Public Accounts Committee
- D. Automatic dismissal of the entire department's staff
Answer: Regularisation by the Legislature after the fact, typically following examination by the Public Accounts Committee
Explanation: Regularisation by the Legislature after the fact, typically following examination by the Public Accounts Committee — verified fact for State Departmental Accounts Examination.
101. A 'Vote on Account' in the budget process is generally used to:
- A. Permanently replace the need for a full annual budget forever
- B. Enable the government to meet essential expenditure for a short period before the full budget is passed by the Legislature
- C. Grant the CAG the power to draft the budget instead of the government
- D. Cancel all expenditure of the state until the next election
Answer: Enable the government to meet essential expenditure for a short period before the full budget is passed by the Legislature
Explanation: Enable the government to meet essential expenditure for a short period before the full budget is passed by the Legislature — verified fact for State Departmental Accounts Examination.
102. One of the key purposes of budgetary control is to help ensure that:
- A. Only the Governor personally approves every single bill
- B. Expenditure proceeds broadly in line with the sanctioned grant, and any likely excess or saving is identified in time
- C. Every department spends exactly the same amount as every other department
- D. No department is ever permitted to spend money throughout the year
Answer: Expenditure proceeds broadly in line with the sanctioned grant, and any likely excess or saving is identified in time
Explanation: Expenditure proceeds broadly in line with the sanctioned grant, and any likely excess or saving is identified in time — verified fact for State Departmental Accounts Examination.
103. 'Budgetary control' in general government financial administration mainly refers to:
- A. The system of watching that actual expenditure does not exceed the budget allotment, and taking timely corrective action
- B. A system where departments spend without any reference to their sanctioned budget
- C. A process exclusively concerned with foreign exchange reserves
- D. A method used only to calculate employee pension entitlements
Answer: The system of watching that actual expenditure does not exceed the budget allotment, and taking timely corrective action
Explanation: The system of watching that actual expenditure does not exceed the budget allotment, and taking timely corrective action — verified fact for State Departmental Accounts Examination.
104. A key general principle behind re-appropriation rules in government budgeting is that funds cannot generally be transferred from a 'charged' item to a:
- A. Any head at all, since re-appropriation is completely banned under all circumstances
- B. 'Voted' item, since the two have a different legislative character
- C. Another 'charged' item under the exact same grant, which is always freely allowed
- D. A suspense head, since suspense heads do not exist in government accounts
Answer: 'Voted' item, since the two have a different legislative character
Explanation: 'Voted' item, since the two have a different legislative character — verified fact for State Departmental Accounts Examination.
105. Re-appropriation of funds between two Major Heads that fall under different Demands for Grants is generally:
- A. Always freely permitted by any junior clerk without any sanction
- B. Not permissible without appropriate higher sanction, since each Demand is separately voted by the Legislature
- C. Only possible if approved by a private auditor
- D. Compulsory at the end of every month regardless of need
Answer: Not permissible without appropriate higher sanction, since each Demand is separately voted by the Legislature
Explanation: Not permissible without appropriate higher sanction, since each Demand is separately voted by the Legislature — verified fact for State Departmental Accounts Examination.
106. 'Re-appropriation of funds' in government budgeting refers to:
- A. Automatically doubling the allotment of every head at year-end
- B. Permanently cancelling the entire budget of a department
- C. Transfer of savings from one budget head to meet excess expenditure anticipated under another head, within the same grant
- D. Transferring funds from the state budget to a private company's bank account
Answer: Transfer of savings from one budget head to meet excess expenditure anticipated under another head, within the same grant
Explanation: Transfer of savings from one budget head to meet excess expenditure anticipated under another head, within the same grant — verified fact for State Departmental Accounts Examination.
107. Like the original Demand for Grants, a Supplementary Grant must also be:
- A. Approved directly by the Accountant General with no other authority involved
- B. Presented to and voted/approved by the State Legislature
- C. Sanctioned solely by the Finance Secretary with no legislative role
- D. Left entirely to the discretion of the spending department
Answer: Presented to and voted/approved by the State Legislature
Explanation: Presented to and voted/approved by the State Legislature — verified fact for State Departmental Accounts Examination.
108. A 'Supplementary Grant' becomes necessary when:
- A. The Legislature has been dissolved before passing any budget
- B. There has been no expenditure at all under a grant during the year
- C. The department wants to reduce its sanctioned budget for the year
- D. The amount authorised in the original budget for a particular service proves to be insufficient during the year
Answer: The amount authorised in the original budget for a particular service proves to be insufficient during the year
Explanation: The amount authorised in the original budget for a particular service proves to be insufficient during the year — verified fact for State Departmental Accounts Examination.
109. Which of the following expenditure is generally NOT included in a 'Demand for Grants' that is voted upon, because it is charged on the Consolidated Fund?
- A. Departmental office expenses for stationery
- B. Salary of judges of the High Court
- C. A new welfare scheme announced for the general public
- D. A capital works project for a new government building
Answer: Salary of judges of the High Court
Explanation: Salary of judges of the High Court — verified fact for State Departmental Accounts Examination.
110. A 'Demand for Grants' in the state budget represents:
- A. A request for authorisation of expenditure for a particular service or department, voted upon by the Legislature
- B. A demand raised by the CAG for additional audit staff
- C. A request made by a private citizen for a government job
- D. A personal loan request submitted by an individual legislator
Answer: A request for authorisation of expenditure for a particular service or department, voted upon by the Legislature
Explanation: A request for authorisation of expenditure for a particular service or department, voted upon by the Legislature — verified fact for State Departmental Accounts Examination.
111. The State Budget, after being finalised by the Finance Department, must ultimately be presented to and passed by:
- A. The State Human Rights Commission
- B. The Parliament of India exclusively, bypassing the state legislature
- C. The State Legislature
- D. The Election Commission of India
Answer: The State Legislature
Explanation: The State Legislature — verified fact for State Departmental Accounts Examination.
112. After departments prepare their budget estimates, these estimates are generally scrutinised and consolidated by:
- A. The Election Commission
- B. The State Finance Department
- C. The Supreme Court of India
- D. The Reserve Bank of India directly
Answer: The State Finance Department
Explanation: The State Finance Department — verified fact for State Departmental Accounts Examination.
113. The process of preparing the annual State Budget generally begins with which of the following steps at the departmental level?
- A. Departments preparing their budget estimates of anticipated receipts and expenditure for the coming year
- B. Courts approving the budget before it goes to the Finance Department
- C. The CAG directly fixing each department's budget without departmental input
- D. The Governor personally drafting every departmental estimate
Answer: Departments preparing their budget estimates of anticipated receipts and expenditure for the coming year
Explanation: Departments preparing their budget estimates of anticipated receipts and expenditure for the coming year — verified fact for State Departmental Accounts Examination.
114. In double-entry bookkeeping as sometimes applied in government commercial-type undertakings, every transaction has:
- A. Only a single entry recorded once, with no corresponding effect
- B. Three separate mandatory entries in three unrelated ledgers
- C. A dual aspect, recorded as a debit in one account and a corresponding credit in another
- D. No requirement for arithmetical balancing at all
Answer: A dual aspect, recorded as a debit in one account and a corresponding credit in another
Explanation: A dual aspect, recorded as a debit in one account and a corresponding credit in another — verified fact for State Departmental Accounts Examination.
115. A 'utilisation certificate' in the context of grants-in-aid is meant to confirm:
- A. That the grant has been permanently written off as a loss
- B. That the grant need not be accounted for at all
- C. That the grant amount was spent for the purpose for which it was sanctioned
- D. That the grant was deposited in the personal account of an official
Answer: That the grant amount was spent for the purpose for which it was sanctioned
Explanation: That the grant amount was spent for the purpose for which it was sanctioned — verified fact for State Departmental Accounts Examination.
116. A 'Grant-in-aid' released by the state government to a local body or institution is generally accounted for as:
- A. A loan that always carries a fixed market rate of interest
- B. Revenue receipt of the state government
- C. An asset owned personally by the sanctioning officer
- D. Expenditure of the state government at the point of release, generally subject to utilisation certificate requirements
Answer: Expenditure of the state government at the point of release, generally subject to utilisation certificate requirements
Explanation: Expenditure of the state government at the point of release, generally subject to utilisation certificate requirements — verified fact for State Departmental Accounts Examination.
117. The term 'head of account' in government financial classification refers to:
- A. The building where the treasury is physically located
- B. The signature of the Finance Minister on the budget
- C. The specific classification code/heading under which a particular receipt or expenditure transaction is recorded
- D. The name of the head of the department only
Answer: The specific classification code/heading under which a particular receipt or expenditure transaction is recorded
Explanation: The specific classification code/heading under which a particular receipt or expenditure transaction is recorded — verified fact for State Departmental Accounts Examination.
118. Why must suspense heads in government accounts eventually be cleared?
- A. So that transactions are correctly classified under their final heads and the accounts reflect the true financial position
- B. Because law requires all suspense heads to be deleted after exactly one day
- C. Because suspense heads are illegal under the Constitution
- D. Because only the Governor is authorised to view suspense heads
Answer: So that transactions are correctly classified under their final heads and the accounts reflect the true financial position
Explanation: So that transactions are correctly classified under their final heads and the accounts reflect the true financial position — verified fact for State Departmental Accounts Examination.
119. A 'suspense head' in government accounts is generally used to record:
- A. Only the accounts of a department that has been permanently closed
- B. Transactions that cannot immediately be booked to their final head of account, pending further information or clearance
- C. Only transactions that have been permanently written off with no further action
- D. The salary of employees who are currently under suspension from service
Answer: Transactions that cannot immediately be booked to their final head of account, pending further information or clearance
Explanation: Transactions that cannot immediately be booked to their final head of account, pending further information or clearance — verified fact for State Departmental Accounts Examination.
120. Government accounts generally distinguish between 'Plan' and 'Non-Plan' expenditure historically, or currently between capital and revenue heads, mainly to help:
- A. Determine which minister receives a personal bonus
- B. Analyse the nature and purpose of expenditure for budgetary planning and control
- C. Allocate seats in the state legislature
- D. Decide which files must be kept confidential
Answer: Analyse the nature and purpose of expenditure for budgetary planning and control
Explanation: Analyse the nature and purpose of expenditure for budgetary planning and control — verified fact for State Departmental Accounts Examination.
121. The 'Appropriation Accounts' of a State Government mainly show:
- A. The number of files pending in each department
- B. The market value of all state-owned land
- C. How the actual expenditure against each grant compares with the amount authorised by the Legislature through the budget
- D. Only the private wealth of individual ministers
Answer: How the actual expenditure against each grant compares with the amount authorised by the Legislature through the budget
Explanation: How the actual expenditure against each grant compares with the amount authorised by the Legislature through the budget — verified fact for State Departmental Accounts Examination.
122. The annual 'Finance Accounts' of a State Government primarily present:
- A. A forecast of the next five years of state revenue only
- B. Only the personal financial records of legislators
- C. A summary of private sector company balance sheets
- D. The annual receipts and disbursements of the government for that financial year, in the prescribed accounts classification
Answer: The annual receipts and disbursements of the government for that financial year, in the prescribed accounts classification
Explanation: The annual receipts and disbursements of the government for that financial year, in the prescribed accounts classification — verified fact for State Departmental Accounts Examination.
123. A 'Personal Deposit Account' or similar deposit account maintained within government accounts is generally used to:
- A. Serve only as a record of foreign remittances to the state
- B. Record the private savings of an individual government minister
- C. Hold moneys belonging to a specific fund, institution, or purpose separately, functioning somewhat like a banking account within government accounts
- D. Replace the Consolidated Fund entirely for all state transactions
Answer: Hold moneys belonging to a specific fund, institution, or purpose separately, functioning somewhat like a banking account within government accounts
Explanation: Hold moneys belonging to a specific fund, institution, or purpose separately, functioning somewhat like a banking account within government accounts — verified fact for State Departmental Accounts Examination.
124. Why is timely reconciliation of departmental expenditure figures with Accountant General figures considered important?
- A. It replaces the need for any audit of government accounts
- B. It is a purely ceremonial exercise with no practical financial purpose
- C. It is required only once in a government employee's entire career
- D. It helps detect discrepancies, misclassification, or errors early, and supports accurate financial reporting and budgetary control
Answer: It helps detect discrepancies, misclassification, or errors early, and supports accurate financial reporting and budgetary control
Explanation: It helps detect discrepancies, misclassification, or errors early, and supports accurate financial reporting and budgetary control — verified fact for State Departmental Accounts Examination.
125. In government accounting, the term 'reconciliation of accounts' most commonly refers to:
- A. Matching departmental figures of receipts/expenditure with the figures booked by the Accountant General to ensure they agree
- B. Auditing the personal conduct of individual government employees
- C. Preparing the final annual budget speech of the Finance Minister
- D. Drafting new legislation for the state assembly
Answer: Matching departmental figures of receipts/expenditure with the figures booked by the Accountant General to ensure they agree
Explanation: Matching departmental figures of receipts/expenditure with the figures booked by the Accountant General to ensure they agree — verified fact for State Departmental Accounts Examination.
126. Which of the following is a typical example of 'charged' expenditure on the Consolidated Fund of a State?
- A. Contribution to a centrally sponsored scheme
- B. Expenditure on a new welfare scheme announced in the annual budget speech
- C. Salaries of all Group C clerical staff in every department
- D. Salary and allowances of the Governor
Answer: Salary and allowances of the Governor
Explanation: Salary and allowances of the Governor — verified fact for State Departmental Accounts Examination.
127. A 'charged' expenditure on the Consolidated Fund of the State, as distinguished from a 'voted' expenditure, is one that:
- A. Must always be voted upon and can be rejected by the Legislature like any other demand
- B. Applies only to expenditure incurred outside the country
- C. Is not subject to the vote of the Legislature, though it may still be discussed
- D. Is entirely outside government accounts and untracked
Answer: Is not subject to the vote of the Legislature, though it may still be discussed
Explanation: Is not subject to the vote of the Legislature, though it may still be discussed — verified fact for State Departmental Accounts Examination.
128. The basic unit of appropriation in the government budget, representing the amount sanctioned for a specific purpose, is often referred to as a:
- A. Public debt statement
- B. Contingency Fund reserve
- C. Primary unit of appropriation (allotment under a detailed head)
- D. Consolidated Fund itself
Answer: Primary unit of appropriation (allotment under a detailed head)
Explanation: Primary unit of appropriation (allotment under a detailed head) — verified fact for State Departmental Accounts Examination.
129. 'Capital expenditure' in government accounting broadly refers to expenditure that:
- A. Results in the creation of concrete assets of a permanent nature, or reduces recurring liabilities
- B. Consists only of interest payments on past loans
- C. Is incurred only for paying daily wages of temporary staff
- D. Applies only to expenditure on stationery and office supplies
Answer: Results in the creation of concrete assets of a permanent nature, or reduces recurring liabilities
Explanation: Results in the creation of concrete assets of a permanent nature, or reduces recurring liabilities — verified fact for State Departmental Accounts Examination.
130. 'Revenue expenditure' in government accounting broadly refers to expenditure that:
- A. Is incurred only for building new roads, bridges, or buildings
- B. Refers only to money borrowed from the market
- C. Refers only to salary paid to Members of the Legislature
- D. Is incurred for the normal running of government and maintenance of existing services, not creating a permanent asset
Answer: Is incurred for the normal running of government and maintenance of existing services, not creating a permanent asset
Explanation: Is incurred for the normal running of government and maintenance of existing services, not creating a permanent asset — verified fact for State Departmental Accounts Examination.
131. Receipt heads in government accounts are generally distinguished from expenditure heads because:
- A. There is actually no distinction; both terms mean the same thing
- B. Receipt heads are maintained only by the CAG and expenditure heads only by the state government
- C. Receipt heads apply only to the Union Government and expenditure heads only to states
- D. Receipt heads record money coming into government coffers, while expenditure heads record money going out for government purposes
Answer: Receipt heads record money coming into government coffers, while expenditure heads record money going out for government purposes
Explanation: Receipt heads record money coming into government coffers, while expenditure heads record money going out for government purposes — verified fact for State Departmental Accounts Examination.
132. Government accounts in India are generally kept in how many broad parts, distinguishing the Consolidated Fund, Contingency Fund, and Public Account?
- A. Five parts
- B. Seven parts
- C. Two parts
- D. Three parts
Answer: Three parts
Explanation: Three parts — verified fact for State Departmental Accounts Examination.
133. In government accounting classification, a 'Minor Head' under a Major Head is generally used to identify:
- A. The name of the individual clerk who processed the bill
- B. The overall consolidated total of the entire state budget
- C. A particular scheme or programme, or a sub-function within that major service
- D. The date of formation of the department
Answer: A particular scheme or programme, or a sub-function within that major service
Explanation: A particular scheme or programme, or a sub-function within that major service — verified fact for State Departmental Accounts Examination.
134. In government accounting classification, a 'Major Head' generally represents:
- A. A main function of government, or a broad category of receipts/expenditure, such as a particular service or department
- B. An individual audit objection raised by the Accountant General
- C. A single individual government employee's salary account
- D. A single day's cash transaction only
Answer: A main function of government, or a broad category of receipts/expenditure, such as a particular service or department
Explanation: A main function of government, or a broad category of receipts/expenditure, such as a particular service or department — verified fact for State Departmental Accounts Examination.
135. Government expenditure and receipts are classified in the accounts under a hierarchy of heads. Which of the following correctly lists this hierarchy from the broadest to the most detailed?
- A. Major Head, Minor Head, Sub-Head, Detailed Head
- B. Detailed Head, Sub-Head, Major Head, Minor Head
- C. Minor Head, Major Head, Detailed Head, Sub-Head
- D. Sub-Head, Major Head, Minor Head, Detailed Head
Answer: Major Head, Minor Head, Sub-Head, Detailed Head
Explanation: Major Head, Minor Head, Sub-Head, Detailed Head — verified fact for State Departmental Accounts Examination.
136. Unlike the Consolidated Fund, withdrawals from the Public Account of a State generally:
- A. Can only be made by the President of India personally
- B. Do not require prior appropriation/authorisation by the Legislature in the same way, since the government is often merely a banker for these funds
- C. Are constitutionally prohibited under all circumstances
- D. Require a fresh Act of Parliament for every single withdrawal
Answer: Do not require prior appropriation/authorisation by the Legislature in the same way, since the government is often merely a banker for these funds
Explanation: Do not require prior appropriation/authorisation by the Legislature in the same way, since the government is often merely a banker for these funds — verified fact for State Departmental Accounts Examination.
137. The Public Account of a State, under Article 266(2), is used mainly for transactions relating to:
- A. Funds like provident funds, small savings, deposits, and other moneys where the government acts mainly as a banker or trustee
- B. Only foreign grants received by the Union Government
- C. Only the state's long-term capital expenditure on infrastructure
- D. Only the salary bill of the state secretariat
Answer: Funds like provident funds, small savings, deposits, and other moneys where the government acts mainly as a banker or trustee
Explanation: Funds like provident funds, small savings, deposits, and other moneys where the government acts mainly as a banker or trustee — verified fact for State Departmental Accounts Examination.
138. A withdrawal from the Contingency Fund of a State to meet unforeseen expenditure must eventually be:
- A. Recouped to the Fund by obtaining a subsequent grant/appropriation from the Legislature charged to the Consolidated Fund
- B. Transferred directly into individual employees' provident fund accounts
- C. Written off permanently with no need for legislative approval
- D. Treated as a gift to the state exchequer requiring no accounting
Answer: Recouped to the Fund by obtaining a subsequent grant/appropriation from the Legislature charged to the Consolidated Fund
Explanation: Recouped to the Fund by obtaining a subsequent grant/appropriation from the Legislature charged to the Consolidated Fund — verified fact for State Departmental Accounts Examination.
139. The Contingency Fund of a State, established under Article 267(2) of the Constitution, is intended mainly for:
- A. Paying regular monthly salaries of all state employees
- B. Investing surplus state revenue in the stock market
- C. Permanently financing new capital assets instead of the Consolidated Fund
- D. Meeting unforeseen expenditure pending its authorisation by the State Legislature
Answer: Meeting unforeseen expenditure pending its authorisation by the State Legislature
Explanation: Meeting unforeseen expenditure pending its authorisation by the State Legislature — verified fact for State Departmental Accounts Examination.
140. Which of the following statements about the Consolidated Fund of the State is correct?
- A. It consists only of loans raised in foreign currency
- B. It is used only for maintaining employee provident fund balances
- C. It can be operated by the executive without any legislative sanction
- D. No money can be withdrawn from it except in accordance with law and for purposes and in the manner provided in the Constitution
Answer: No money can be withdrawn from it except in accordance with law and for purposes and in the manner provided in the Constitution
Explanation: No money can be withdrawn from it except in accordance with law and for purposes and in the manner provided in the Constitution — verified fact for State Departmental Accounts Examination.
141. As per Article 266(1) of the Constitution, all revenues received by a State Government, loans raised by it, and moneys received in repayment of loans are credited to which fund?
- A. The State Provident Fund
- B. The Public Account of the State
- C. The Contingency Fund of the State
- D. The Consolidated Fund of the State
Answer: The Consolidated Fund of the State
Explanation: The Consolidated Fund of the State — verified fact for State Departmental Accounts Examination.
142. Under cash-basis government accounting, a receipt or payment is recorded in the accounts of the year in which:
- A. The budget estimate for it was first prepared
- B. The audit of the transaction is completed
- C. The liability is merely incurred, regardless of actual cash movement
- D. The cash is actually received into, or paid out of, the government account
Answer: The cash is actually received into, or paid out of, the government account
Explanation: The cash is actually received into, or paid out of, the government account — verified fact for State Departmental Accounts Examination.
143. Government accounts in India, at both the Union and State level, are traditionally maintained mainly on which basis?
- A. Accrual basis exclusively
- B. Barter basis
- C. Mark-to-market basis
- D. Cash basis
Answer: Cash basis
Explanation: Cash basis — verified fact for State Departmental Accounts Examination.
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