Q72. ‘Zero Defect, Zero Effect’ is an initiative of which one among the following Ministries of the Government of India ?
(a) Ministry of Heavy Industries (b) Ministry of Education (c) Ministry of Skill Development and Entrepreneurship (d) Ministry of Micro, Small and Medium Enterprises
Correct Answer: (d) Ministry of Micro, Small and Medium Enterprises Explanation: ZED is under MSME Ministry for quality in MSMEs (confirmed via web search).
Q73. Which of the following statements relating to the recent steps taken by the ‘Employees’ Provident Fund Organization (EPFO)’ is/are correct ?
- EPFO has enhanced member services by increasing the auto-settlement limit for advance claims from the existing ₹ 1 lakh to ₹ 3 lakh.
- EPFO first introduced auto-settlement of advance claims during the COVID-19 pandemic.
Select the answer using the codes given below : (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
Correct Answer: (b) 2 only Explanation: Limit increased to ₹5 lakh (not ₹3 lakh), so 1 is incorrect. 2 is correct (introduced during COVID; confirmed via web search).
Q74. Which of the following statements relating to the recent steps taken by the Government of India under the ‘Employment Linked Incentive (ELI) Scheme’ is/are correct ?
- ₹ 1 lakh crore has an outlay of about
- Establishments registered with the EPFO are required to hire at least two additional employees (with fewer than 50 employees), or five additional employees (with 50 or more employees), on a sustained basis for at least six months, to avail benefit under the ELI Scheme.
Select the answer using the codes given below : (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
Correct Answer: (c) Both 1 and 2 Explanation: Outlay ≈₹1 lakh crore (₹99,446 crore). Hiring thresholds as stated for Scheme C (confirmed via web search).
Q75. The Union Cabinet has approved a new Framework on Currency Swap Arrangement with which regional bloc for the period 2024 – 2027 ?
(a) South Asian Association for Regional Cooperation (SAARC) (b) African Union (AU) (c) Association of Southeast Asian Nations (ASEAN) (d) European Union (EU)
Correct Answer: (a) South Asian Association for Regional Cooperation (SAARC) Explanation: RBI’s SAARC currency swap framework for 2024-2027 (confirmed via web search).
Q76. The principle of inventory valuation – “cost or net realizable value, whichever is lower” is based on :
(a) Accrual Concept (b) Matching Concept (c) Money Measurement Concept (d) Convention of Conservatism
Correct Answer: (d) Convention of Conservatism Explanation: Conservatism principle requires anticipating losses (lower value) but not profits.
Q77. Which one of the following is not a fundamental ‘accounting assumption’ in the preparation of financial statements ?
(a) Matching concept (b) Going concern (c) Accrual (d) Consistency
Correct Answer: (a) Matching concept Explanation: Fundamental assumptions are going concern, accrual, and consistency. Matching is a concept/principle.
Q78. Which one of the following is not a revenue expenditure ?
(a) Overhaul expenses of a second hand machine purchased (b) Legal fees for acquiring a property (c) Amount spent for replacement of worn-out part of a machine (d) Expenses in connection with obtaining a license for running the cinema hall
Correct Answer: (b) Legal fees for acquiring a property Explanation: This is capital expenditure (adds to asset value). Others are revenue (maintenance/operations).
Q79. When purchase of an asset is treated as an expense, in the accounting context, it is called :
(a) Error of principle (b) Error of omission (c) Error of commission (d) Compensating error
Correct Answer: (a) Error of principle Explanation: Violates the distinction between capital and revenue items.
Q80. In accounting context, which one of the following is not correct ?
(a) Capital reserves are normally created out of capital profits (b) Revenue reserves are normally created out of business profits (c) General reserve can be used only for some specific purposes (d) Provision is a charge against profit
Correct Answer: (c) General reserve can be used only for some specific purposes Explanation: General reserve is free for any purpose; specific reserves are for designated uses.
Q81. Which one of the following statements is correct ?
(a) Proof of the accuracy of trial balance is a conclusive proof of the accuracy (b) Suspense account opened in a trial balance is a permanent account (c) Nominal accounts of the ledger book are not balanced (d) A ledger is known as the principal book
Correct Answer: (d) A ledger is known as the principal book Explanation: Ledger is the main book. Trial balance isn’t conclusive (a wrong), suspense is temporary (b wrong), nominal accounts are balanced before closing (c wrong).
Q82. Which one of the following is not correct ?
(a) Capital account has a debit balance (b) Discount column of cash book records cash discount (c) Outstanding is a personal account (d) Cash sales are not recorded in the sales day book
Correct Answer: (a) Capital account has a debit balance Explanation: Capital account has credit balance. Others are correct (outstanding expenses is representative personal a/c; cash sales in cash book).
Q83. Which of the following is correct ?
(a) Operating profit = Net profit – Non-operating expenses – Non-operating incomes (b) Operating profit = Net profit + Non-operating expenses – Non-operating incomes (c) Operating profit = Net profit + Non-operating expenses + Non-operating incomes (d) Operating profit = Net profit – Non-operating expenses + Non-operating incomes
Correct Answer: (b) Operating profit = Net profit + Non-operating expenses – Non-operating incomes Explanation: Rearranging Net profit = Operating profit + Non-operating incomes – Non-operating expenses gives the formula. Reasoning: Add back expenses, subtract incomes to isolate operating.