General Financial Rules 2017 - Chapter 4: Government Accounts

  1. Accounts of the Union Government shall be prepared by
    1. CGA
    2. C&AG
    3. Financial Advisor of the concerned Ministry/Department
    4. Public Account Committee
  2. Accounts of the Union Government shall be certified by
    1. CGA
    2. C&AG
    3. Financial Advisor of the concerned Ministry/Department
    4. Public Account Committee
  3. Accounts of the Union Government shall be submitted to the President of India, preferably within
    1. 1 month of close of the Financial Year
    2. 3 months of close of the Financial Year
    3. 6 months of close of the Financial Year
    4. 9 months of close of the Financial Year
  4. Who shall cause Accounts of the Union Government to be laid before each House of Parliament?
    1. Finance Minister
    2. Union Cabinet
    3. C&AG
    4. President
  5. The Accounts of the Union Government shall be kept in such form as the President may, on the advice of the Comptroller and Auditor General of India, prescribe as given in Article
    1. 148
    2. 149
    3. 150
    4. 151
  6. Who is responsible for prescribing the form of accounts of the Union and States, and to frame, or revise, rules and manuals relating thereto on behalf of the President of India on the advice of the Comptroller and Auditor General of India?
    1. Accountant General
    2. CCA
    3. CAA
    4. CGA
  7. Government accounts shall be prepared on
    1. cash basis.
    2. credit basis
    3. accrual basis
    4. any of the above
  8. Government accounts shall be kept in
    1. single part
    2. two parts
    3. three parts
    4. four parts
  9. Pick the incorrect one
    1. Consolidated Fund is divided into two Divisions, namely, ‘Revenue’ and ‘Capital’ divisions.
    2. The Revenue Division comprises two sections namely Receipt Heads (Revenue Account) dealing with the proceeds of taxation and other receipts classified as revenue and the section ‘Expenditure Heads (Revenue Account)’ dealing with the revenue expenditure met therefrom.
    3. The Capital Division comprises two sections, viz., ‘Receipt Heads (Capital Account)’ and ‘Expenditure Heads (Capital Account)’
    4. These sections are in turn divided into sectors such as ‘General Services’, ‘Social and Community Services’, ‘Economic Services’, etc., under which specific functions or services are grouped corresponding to the sectors of classification and which are represented by Major Heads (comprising Sub-Major Heads wherever necessary).
  10. Contingency Fund of Union Territories are set up by the Government of India under
    1. Section 48 of Government of Union Territories Act, 1963.
    2. Section 52 of Government of Union Territories Act, 1948
    3. Section 62 of Government of Union Territories Act, 1965
    4. Section 108 of Government of Union Territories Act, 1967
  11. Transactions relating to debt (other than those included in Part-I), reserve funds, deposits, advances, suspense, remittances and cash balances shall be recorded in
    1. Consolidated Fund
    2. Contingency Fund
    3. Public Account
    4. Departmental Fund
  12. The classification of transaction in Government Accounts shall have closer reference to
    1. Function/Programme/Activity
    2. Department/Ministry
    3. Capital and Revenue
    4. Charged and Voted
  13. Classification of Government Accounts consists of
    1. 4 tiers
    2. 5 tiers
    3. 6 tiers
    4. 7 tiers
  14. The six tiers of Government Accounts are represented by a unique
    1. 15 digits’ numeric code.
    2. 15 digits’ alpha-numeric code
    3. 13 digits’ numeric code.
    4. 13 digits’ alpha-numeric code
  15. Pick the incorrect one
    1. The List of Major and Minor Heads of Accounts of Union and States is maintained by the Ministry of Finance (Department of Expenditure – Controller General of Accounts)
    2. CGA is authorised to open a new head of account on the advice of the C&AG under the Article 150 of the Constitution.
    3. Ministries/Departments may open Sub-Heads and Detailed Heads as required by them in consultation with the Budget Division of the Ministry of Finance.
    4. Principal Accounts Offices of Ministry/Department may open Sub/Detailed Heads required under the Minor Heads falling within the Consolidated Fund of India subject to certain restriction.
  16. The Object Heads have been prescribed under Government of India’s Orders below Rule 8 of
    1. R&P 1983
    2. GFR 2017
    3. GAR 1990
    4. Delegation of Financial Power Rules
  17. State whether true or false In cases of doubt regarding the Head under which a transaction should be accounted, the matter shall be referred to the Principal Accounts Officer of the Ministry/Department concerned for clarification of the Ministry of Finance and the CA&G, wherever necessary.
    1. True
    2. False
  18. RBI shall nominate a bank to function as Accredited Bank of a Ministry or Department, in consultation with the
    1. CGA
    2. C&AG
    3. PAO
    4. Finance Minister
  19. Pick the correct ones (i) Public Financial Management System (PFMS) an integrated Financial Management System of CGA shall be used for sanction preparation, bill processing, payment, receipt management, Direct Benefit Transfer, fund flow management and financial reporting. (ii) All the payment, to the extent possible, shall be released ‘just-in-time’ by the Ministries through PFMS. (iii) Detailed Demand for Grants (DDG), as approved, must be uploaded on PFMS by the end of the financial year. (iv) All the re-appropriation orders, surrender order shall be generated through PFMS system. (v) All grantee institutions shall submit Utilisation Certificates on PFMS.
    1. i, ii, iii and iv
    2. i, ii, iv and v
    3. ii, iii, iv and v
    4. All of the above
  20. DBT should include
    1. in-kind transfers to beneficiaries
    2. in cash transfers to beneficiaries
    3. transfers/honorariums given to various enablers of government schemes
    4. All of the above.
  21. Transaction charges for the financial intermediaries facilitating DBT payments shall be paid as stipulated by
    1. Union Cabinet
    2. Ministry of Finance
    3. Ministry of Trade & Commerce
    4. Ministry of Corporate Affairs
  22. Appropriation Accounts of Central Ministries/Departments other than Ministry of Railways, Defence and Posts shall be prepared by the
    1. CCA
    2. CGA
    3. C&AG
    4. Principal Accounts Officer
  23. Appropriation Accounts of Central Ministries/Departments shall be prepared under the guidance of
    1. CCA
    2. CGA
    3. C&AG
    4. Principal Accounts Officer
  24. Who signs the Appropriation Accounts of Central Ministries/Departments?
    1. CAA
    2. CGA
    3. C&AG
    4. Principal Accounts Officer
  25. Union Government Appropriation Accounts (Civil) that required to be submitted to Parliament, shall be prepared by
    1. Principal Accounts Officer
    2. CCA
    3. CA&G
    4. CGA
  26. State whether true or false Appropriation Accounts pertaining to Departments of Posts and Defence Services shall be prepared and signed by the Secretaries to the Government of India in the Department of Posts and Ministry of Defence respectively and that of Ministry of Railways by the Chairman, Railway Board.
    1. True
    2. False
  27. Accounts showing under the respective Heads the annual receipts and disbursements and statement of balances for the purpose of the Union, are called
    1. Appropriation Accounts
    2. Finance Accounts
    3. Proforma Accounts
    4. Balance Sheet
  28. Finance accounts of the Government of India (including transactions of Department of Posts and Ministries of Defence and Railways and transactions under Public Account of India of Union Territory Governments) shall be prepared and signed by the
    1. CGA
    2. C&AG
    3. Secretary (Expenditure), Ministry of Finance
    4. Finance Minister
  29. Finance accounts of the Government of India is countersigned by the
    1. CGA
    2. C&AG
    3. Secretary (Expenditure), Ministry of Finance
    4. Finance Minister
  30. The certified Annual Accounts and the Reports relating to the accounts shall be submitted by the Comptroller and Auditor General of India to the President in accordance with the provisions of
    1. Section 10 of DPC Act, 1971 & Article 150 of Constitution
    2. Section 11 of DPC Act, 1971 & Article 151 of Constitution
    3. Section 11 of DPC Act, 1971 & Article 150 of Constitution
    4. Section 10 of DPC Act, 1971 & Article 151 of Constitution
  31. The Appropriation and Finance Accounts shall be prepared by the respective authorities on the dates mutually agreed upon with the
    1. CGA
    2. C&AG
    3. DRSC
    4. Finance Minister
  32. State whether true or false Details of the financial stakes of the Administrative Ministries / PSUs / Subordinate / Statutory / Autonomous Bodies in Public Private Partnerships (PPP)/ Production Sharing Contracts (PSCs)/ Joint Ventures (JV’s)/ Subsidiary companies etc. should be disclosed Finance Accounts.
    1. True
    2. False
  33. Pick the incorrect one
    1. Proforma Accounts is suitable for Government Departments working on a commercial or quasi-commercial basis
    2. This includes the maintenance of suitable Manufacturing, Trading, Profit & Loss Accounts and Balance Sheet.
    3. The Head of the units shall be required to maintain such subsidiary proforma accounts in commercial form as may be agreed between Government and CGA.
    4. None of the above (All of the above are correct)
  34. Proforma accounts of regular Government Workshops and Factories shall be kept in accordance with the detailed rules and procedure prescribed in the
    1. GAR, 1990
    2. R&P, 1983
    3. GFR, 2017
    4. Departmental regulations.
  35. Proforma accounts relating to Public Works shall be prepared by the
    1. Divisional Officer
    2. CCA
    3. Accounts Officers
    4. CGA
  36. Proforma accounts relating to Public Works shall be prepared by the Accounts Officers in accordance with the instructions contained in
    1. Departmental regulations
    2. Account Code for Accountants General.
    3. GAR, 1990
    4. Works Manual.
  37. Where commercial accounts are maintained for the purpose of assessment of the cost of an article or service, who shall ensure that adequate regulations are framed with the approval of Government in order to ensure that the cost deduced from the accounts is accurate and true?
    1. Head of the Unit
    2. CAG
    3. CGA
    4. CCA
  38. Subsidiary accounts and statements shall be submitted on such date as may be required by to the
    1. CCA
    2. CAA
    3. CGA
    4. Accounts Officer
  39. Subsidiary accounts and statements shall be appended each year to the
    1. Appropriation Accounts
    2. Finance Accounts
    3. Departmental Accounts
    4. Balance Sheet
  40. The Personal Deposit Account shall be authorised to be opened by a special order by the concerned Ministry or Department in consultation with the
    1. CAA
    2. CCA
    3. CGA
    4. C&AG
  41. Every personal deposit account so authorised to be opened, shall form part of the Government Account and be located in the
    1. Consolidated Fund
    2. Contingency Fund
    3. Public Account
    4. Local Departmental Account
  42. The provisions relating to “Personal Deposit Account” are contained in
    1. Civil Accounts Manual and R&P 1983
    2. GAR, 1990
    3. GFR, 2017
    4. Accounts Code
  43. In relation to Civil and Criminal Courts’ deposits, Personal Deposit Account to be opened in favour of the
    1. Chief Justice of High Court of the State Concerned
    2. Chief Justice of Supreme Court
    3. Bar Council
    4. Chief Judicial Authority concerned
  44. State whether true or false Officers commanding units and others concerned in the administration of public funds in the Defence Departments can be authorised to open personal deposit accounts for such funds.
    1. True
    2. False
  45. Significant expenditure incurred with the object of acquiring tangible assets of a permanent nature or enhancing the utility of existing assets, shall broadly be defined as
    1. Assets expenditure
    2. Capital expenditure.
    3. Revenue expenditure
    4. At discretion of HoD
  46. Charges on maintenance, repair, upkeep and working expenses, which are required to maintain the assets in a running order as also all other expenses incurred for the day to day running of the organisation, including establishment and administrative expenses, shall be classified as
    1. Revenue expenditure
    2. Capital expenditure
    3. Major Expenditure
    4. Contingent Expenditure
  47. Pick the incorrect one
    1. Expenditure on a temporary asset or on grants-in-aid cannot ordinarily be considered as a capital expenditure
    2. Expenditure on a temporary asset or on grants-in-aid shall not, except in cases specifically authorised by the President on the advice of the C&AG, be debited to a Capital Head.
    3. Capital expenditure is generally met from receipts of capital nature, as distinguished from ordinary revenues derived from taxes, duties, fees, fines and similar items of current income including extraordinary receipts.
    4. Under no circumstances the Government shall meet capital expenditure from ordinary revenues.
  48. Charges for re- placement of all wastage or depreciation of property originally provided out of capital grants shall be classified as
    1. Revenue Expenditure
    2. Capital Expenditure
    3. Contingent Expenditure
    4. At discretion of HoD
  49. The cost of genuine improvements, which enhance the useful life of the asset whether determined by prescribed rules or formulae, or under special orders of Government, may be debited to
    1. Revenue Expenditure
    2. Capital Expenditure
    3. Contingent Expenditure
    4. At discretion of HoD
  50. Expenditure on account of reparation of damage caused by extraordinary calamities such as flood, fire, earthquake, enemy action, etc., shall be charged to Capital, or to Revenue, or divided between them,  depending upon whether such expenditure results in creation/acquisition of new assets or whether it is only for restoring the condition of the existing assets, as may be determined case basis by
    1. HoD
    2. Government
    3. Ministry of Finance
    4. Accounts Office
  51. The allocation between capital and revenue expenditure on a Capital Scheme for which separate Capital and Revenue Accounts are to be kept, shall be determined in accordance with such general or special orders as may be prescribed by the Government after consultation with the
    1. CGA
    2. CCA
    3. C&AG
    4. Niti Aayog
  52. Capital receipts accruing during the process of construction of a project, shall be classified as
    1. Revenue Receipt
    2. Misc. Receipt
    3. Contribution
    4. reduction of capital expenditure
  53. Receipts and recoveries on Capital Account in so far as they represent recoveries of expenditure previously debited to a Capital Major Head shall be taken in
    1. reduction of capital expenditure
    2. Revenue Receipt
    3. Misc. Receipt
    4. Contribution
  54. State whether true or false Where loans outstanding against Public Sector Undertakings are proposed to be converted into equity investments in or as grants-in-aid to the Public Sector Undertakings, the approval of the Ministry of Finance to such proposals, shall be obtained by including a token provision in the relevant Demands for Grants or Supplementary Demands for Grants as may be found expedient.
    1. True
    2. False
  55. For capital outlay provided otherwise (other than out of specific loan raised by the Govt.), interest shall be charged at the rate of interest to be determined each year by the
    1. Department of Economic Affairs, Ministry of Finance.
    2. Department of Expenditure, Ministry of Finance
    3. Ministry of Trade & Commerce
    4. Ministry of Corporate Affairs
  56. As a convention, the period accepted by Central and State Governments for the re-audit of past transactions involving errors in classification
    1. 2 years
    2. 3 years
    3. 5 years
    4. 10 years
  57. The Central Government (which includes Union Territories) and the State Governments have agreed under reciprocal arrangements not to prefer petty and isolated claims for an amount not exceeding
    1. 5000/-
    2. 7500/-
    3. 10000/-
    4. 15000/-
  58. If a doubt arises as to whether a particular claim would fall within or outside the purview of the proposed arrangement between the Central Government (which includes Union Territories) and the State Governments, it shall be decided by
    1. Central Govt.
    2. State Governments concerned
    3. mutual consultation
    4. Parliament.
  59. In the case of Projects, jointly executed by several Governments, where the expenditure is to be shared by the participating Governments in agreed proportions, but the expenditure is ab-initio incurred by one Government and shares of other participating Governments recovered subsequently shall be exhibited as
    1. Revenue receipt
    2. Misc. Revenue receipt
    3. Misc. Deposit Receipt
    4. abatement of charges
  60. A five years’ contract shall be offered to the State Government during which the Central Government would pay the fixed sum per annum for the work, If the charges are found to be reasonable and do not exceed for any individual item (or connected group of items)
    1. 10000/-
    2. 25000/-
    3. 50000/-
    4. 100000/-
  61. An annual statement of proposed charges from the State Government at the time of preparation of the Budget shall be necessary, if the amount agreed upon exceeds
    1. 25000/-
    2. 50000/-
    3. 75000/-
    4. 100000/-
  62. Claims of State Governments, on account of the extra cost of agency functions entrusted to them under
    1. Article 258
    2. Article 259
    3. Article 261
    4. Article 263
  63. The date up-to which Inter-Governmental adjustments can be carried out as the books of RBI for the month of March are closed on this very date
    1. 7th April
    2. 15th April
    3. 20th May
    4. 1st June
  64. Recoveries of expenditure for services rendered or supplies made to non-Government parties or other Governments (including local funds and Governments outside India), shall in all cases, be classified as
    1. Reduction of Expenditure
    2. Receipts
    3. Contribution
    4. Misc. Deposit Receipt
  65. When a Government undertakes a service merely as an agent of a private body, the recovery of entire cost of the service rendered shall be taken
    1. Reduction of Expenditure
    2. Receipts
    3. Contribution
    4. Misc. Deposit Receipt
  66. State whether true or false Any relief in respect of payment for services rendered or supplies made to any outside body or fund shall ordinarily be given through a remission of dues rather than by grant-in-aid.
    1. True
    2. False
  67. Pick the incorrect one
    1. Half the maintenance charges pertaining to boarder/boundary line will be borne by the Central Government, the other half being recovered, as far as practicable, from the foreign country, failing which the foreign country’s share will also be borne by the Central Government.
    2. Charges relating to demarcation of boundaries and boundary disputes will be borne by the Central Government under Entry 10 of the Union List, subject to such recovery as shall be made from the Foreign Country.
    3. Where streams or other watercourses form the boundaries and where the ordinary principle of median line applies, the Government concerned will bear the cost of maintenance of the boundary line on its side.
    4. The arrangement in (a) above i.e. bearing half the maintenance charges pertaining to boarder/boundary line, in its application to Nepal will be subject to special arrangements worked out in consultation with the Nepal Government.
    5. The share of the Nepal Government for maintenance and demarcation of and disputes over boundaries will be borne by the Central Government for the present
  68. For purposes of inter-Departmental payments, the Departments of a Government shall be divided into
    1. Service departments and commercial departments
    2. Work departments and non-work departments
    3. General Departments and Economic departments
    4. General, Social and Economic departments.
  69. All claims shall ordinarily be preferred between Departments, both commercial and non-commercial of the Central Government, within the same financial year and not beyond
    1. 2 years from the date of transaction.
    2. 3 years from the date of transaction.
    3. 5 years from the date of transaction.
    4. 7 years from the date of transaction.
  70. The settlement of inter-departmental adjustments shall be regulated by the directions contained in Chapter 4 of
    1. R&P 1983
    2. GAR,1990.
    3. GFR, 2017
    4. Treasury Rules
  71. Between different Departments of the same Government, the recoveries effected for services rendered shall be classified as
    1. Revenue Income
    2. Misc. Income
    3. Deposit Receipt
    4. Deductions from the gross expenditure.
  72. Recoveries made by a Commercial Department, e.g., Railways, Posts or a departmental commercial undertaking in respect of services rendered in pursuance of the functions for which the Commercial Department is constituted shall be treated as
    1. receipts of the Department
    2. deductions from the gross expenditure
    3. grant to the department
    4. deposit receipt
  73. Where a commercial department acts as an agent for the discharge of functions not germane to the essential purpose of the Department, the recoveries shall be taken as
    1. Revenue Income
    2. Misc. Income
    3. Reduction of expenditure
    4. Deposit Receipt
  74. Recoveries of fees for purchase, inspection, etc., effected by the Central Purchase Organizations (DGS&D) of Government of India, are treated as
    1. receipts of the Department
    2. deductions from the gross expenditure
    3. grant to the department
    4. deposit receipt
  75. State whether true or false Recoveries effected from another Department of the same Government which are to be classified as deduction from the gross expenditure, shall be shown in the relevant Demand for Grant as “below the line” recovery under the appropriate Major Head of Account etc.
    1. True
    2. False
  76. Fill in the blank In the case of Government Departments and undertakings declared as commercial, adjustment of Pensionary liability shall be made in the regular accounts by charging the average of the percentage for ___________ of service based on the rates of monthly contribution of prescribed pension
    1. 10th years
    2. 12th years
    3. 15th years
    4. 20th years