JKSSB Accounts Assistant (Finance) - Social Accounting, Social Audit, Single Entry System & PFMS Practice Test 50 MCQs

JKSSB Accounts Assistant (Finance) - Social Accounting, Social Audit, Single Entry System & PFMS Practice Test

Targeted 50 MCQ Practice Module focusing on: Concept of Social Accounting & Social Audit, Cash-Based Single Entry System of Accounting, and Public Financial Management System (PFMS).

Select your answers and click Submit Assessment Answers at the bottom to calculate your total score and review explanations.

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SECTION I: Social Accounting & Social Audit [Questions 1 to 20]

1. Social Accounting is primarily concerned with:

Recording only the cash transactions of an entity Measuring and reporting the social costs and social benefits generated by an entity's activities Preparation of statutory tax returns Verifying arithmetical accuracy of ledger postings

Explanation: Social Accounting extends conventional accounting to identify, measure, and report the social costs and benefits an organization's activities impose on or contribute to society.

2. Which of the following is NOT typically regarded as an objective of Social Accounting?

Assessing the social contribution of a business to society Identifying social costs like pollution and resource depletion Determining eligibility for GST input tax credit Informing stakeholders about the entity's social performance

Explanation: Social accounting focuses on social costs, benefits, and stakeholder disclosure — not on tax computation matters like GST input credit.

3. Human Resource Accounting, which values and reports an organization's human capital, is generally regarded as a branch of:

Social Accounting Cost Accounting Tax Accounting Government Accounting

Explanation: Since employees are viewed as a valuable social/organizational resource, Human Resource Accounting falls under the broader umbrella of Social Accounting.

4. Corporate Social Responsibility (CSR) provisions for companies in India are mandated under which Section of the Companies Act, 2013?

Section 149 Section 135 Section 186 Section 217

Explanation: Section 135 of the Companies Act, 2013 lays down the CSR obligations applicable to specified classes of companies.

5. Under the Companies Act, 2013, eligible companies are required to spend a minimum of what percentage of their average net profits of the preceding three financial years on CSR activities?

1% 5% 2% 10%

Explanation: Eligible companies must spend at least 2% of their average net profits of the immediately preceding three financial years on CSR.

6. The "Triple Bottom Line" approach associated with Social Accounting evaluates organizational performance across which three dimensions?

Assets, Liabilities, Capital People, Planet, Profit Revenue, Cost, Margin Debit, Credit, Balance

Explanation: Triple Bottom Line reporting evaluates social (People), environmental (Planet), and financial (Profit) performance together.

7. A Social Audit primarily aims to:

Ensure accountability and transparency in the utilization of public funds and resources for social welfare purposes Certify the truth and fairness of a company's financial statements Detect frauds committed by ledger clerks Calculate depreciation on fixed assets

Explanation: Social Audit is a participatory process of verifying whether public money and resources meant for social welfare schemes have actually reached and benefited the intended people.

8. In India, the concept of Social Audit is most prominently and statutorily linked with which rural welfare scheme?

Pradhan Mantri Awas Yojana Ayushman Bharat PM Kisan Samman Nidhi Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

Explanation: MGNREGA mandates regular, statutory Social Audit of all its works and expenditure through the Gram Sabha.

9. As per the MGNREGA Audit of Schemes Rules, the Gram Sabha is required to conduct a Social Audit of the works undertaken in the Gram Panchayat at least once every:

One month Six months Two years Five years

Explanation: The Gram Sabha must conduct a Social Audit of all works executed within its jurisdiction at least once every six months.

10. Independent bodies set up by State Governments to facilitate and institutionalize the Social Audit process under schemes such as MGNREGA are known as:

State Finance Commissions Public Accounts Committees Social Audit Units / Societies Central Vigilance Commissions

Explanation: States are required to set up independent Social Audit Units (Societies) to plan, facilitate, and conduct social audits of MGNREGA and other schemes.

11. Environmental Accounting, a component of Social Accounting, is chiefly concerned with recording:

The costs and benefits arising from an organization's impact on the natural environment Depreciation on plant and machinery only Foreign exchange transactions Statutory bonus payable to employees

Explanation: Environmental accounting identifies and reports costs (e.g., pollution control, resource depletion) and benefits related to an entity's environmental footprint.

12. Social Accounting fundamentally differs from traditional Financial Accounting in that it:

Uses only the cash basis of recording Is restricted strictly to owners and creditors as users Ignores monetary transactions altogether Extends measurement beyond monetary transactions to include the entity's wider social and environmental impact on external stakeholders

Explanation: While financial accounting reports monetary transactions for owners/creditors, social accounting broadens the scope to society at large, including non-monetary social impacts.

13. Which of the following is an example of a positive social benefit generated by a business enterprise?

Emission of industrial pollutants Generation of local employment opportunities Depletion of natural resources Traffic congestion caused by factory operations

Explanation: Employment generation is a positive externality/social benefit, whereas pollution, resource depletion, and congestion are negative social costs.

14. GRI, a widely used international framework referenced in Social/Sustainability Accounting, stands for:

Government Revenue Index General Reserve Investment Global Reporting Initiative Gross Realized Income

Explanation: The Global Reporting Initiative (GRI) provides globally recognized standards for sustainability/social reporting.

15. In the context of corporate reporting, the acronym "ESG" stands for:

Environmental, Social, Governance Equity, Security, Guarantee Expense, Sales, Gross Profit Estimated Standard Growth

Explanation: ESG criteria (Environmental, Social, Governance) are used to assess an organization's non-financial performance and sustainability practices.

16. Under Section 135 of the Companies Act, 2013, the CSR Committee constituted by the Board of an eligible company must consist of a minimum of how many directors?

Five directors One director Seven directors Three directors

Explanation: The CSR Committee generally must have at least three directors, including one independent director (subject to statutory relaxations for certain companies).

17. In India, policy administration relating to Corporate Social Responsibility falls under which Ministry?

Ministry of Rural Development Ministry of Finance Ministry of Corporate Affairs Ministry of Labour and Employment

Explanation: The Ministry of Corporate Affairs (MCA) administers the Companies Act, 2013, including CSR provisions.

18. The ultimate goal of conducting Social Audits of government welfare schemes is to:

Strengthen public accountability by empowering citizens/beneficiaries to scrutinize scheme implementation Reduce the number of government employees Fix market prices of essential commodities Compute income tax liability of beneficiaries

Explanation: Social audit is a tool of direct public accountability, enabling citizens to verify whether scheme funds and works were implemented as officially claimed.

19. During a Social Audit, the physical work actually executed on the ground is verified and compared against:

The prevailing market rate of raw materials The officially recorded measurement books and expenditure records of the scheme The auditor's personal opinion only, without documentary support The competitor company's audited accounts

Explanation: Social audit teams cross-verify ground-level physical execution and beneficiary testimony against official measurement books and expenditure records to detect discrepancies.

20. Which of the following is generally considered a limitation of Social Accounting?

It is compulsory for all sole proprietorships under law It replaces the need for a Trial Balance It eliminates the need for statutory financial audit Many social costs and benefits are difficult to identify and express in precise monetary terms

Explanation: A key criticism of social accounting is the subjectivity and difficulty involved in quantifying non-monetary social and environmental impacts.

SECTION II: Cash-Based Single Entry System of Accounting [Questions 21 to 35]

21. The Single Entry System of accounting is best described as a method that:

Records every transaction with equal debit and credit entries Is used exclusively by large public limited companies Maintains incomplete records, typically only cash and personal accounts, without following the full double-entry principle Requires preparation of a formal Trial Balance every month

Explanation: Single entry system is an unscientific, incomplete method of bookkeeping where usually only cash transactions and personal accounts of debtors/creditors are recorded.

22. The Single Entry System is more accurately and technically referred to as:

Double Account System Accounts from Incomplete Records Government Accounting System Cost Plus Accounting System

Explanation: Since it does not maintain a complete set of books based on the dual aspect concept, it is technically termed "Accounts from Incomplete Records".

23. The cash-based single entry system of accounting is most commonly and suitably adopted by:

Multinational listed corporations Government departments Banking companies Small traders, sole proprietors, and professionals with simple, limited-scale operations

Explanation: Due to its simplicity and low cost, single entry is generally suited only to small businesses with a limited volume of transactions.

24. Under a cash-based single entry system, the account that is almost invariably maintained in full is the:

Cash Book Machinery Account Depreciation Account Goodwill Account

Explanation: The Cash Book, recording cash receipts and payments, is maintained completely, while real and nominal accounts are largely absent under single entry.

25. Under Single Entry System, profit or loss for a period is commonly ascertained through the:

Trading Account Method only Cash Flow Statement Method Statement of Affairs (Net Worth / Capital Comparison) Method Ratio Analysis Method

Explanation: In the absence of complete ledgers, profit is estimated by comparing the capital (net worth) at the beginning and end of the period.

26. Under the Net Worth Method, Profit for the year is calculated using the formula:

Profit = Opening Capital − Closing Capital Profit = (Closing Capital + Drawings) − (Opening Capital + Additional Capital Introduced) Profit = Sales − Purchases only Profit = Total Assets ÷ Total Liabilities

Explanation: Profit is derived by adjusting the increase in capital for drawings (added back) and fresh capital introduced (deducted), since these are not trading results.

27. The "Statement of Affairs" prepared under Single Entry System closely resembles which financial statement under the Double Entry System?

Balance Sheet Trading Account Cash Flow Statement Profit and Loss Appropriation Account

Explanation: A Statement of Affairs lists estimated assets and liabilities on a given date, similar in appearance to a Balance Sheet.

28. The key difference between a Statement of Affairs and a Balance Sheet is that the Statement of Affairs:

Is always more accurate than a Balance Sheet Can only be prepared by chartered accountants Excludes all liabilities Is prepared from incomplete records and estimates, and is not verified through a Trial Balance, unlike a Balance Sheet

Explanation: Since the Statement of Affairs relies on estimates and incomplete ledger balances, it lacks the arithmetical verification that a Trial Balance provides for a Balance Sheet.

29. Under "Pure Single Entry", which of the following accounts alone are maintained?

Only Nominal Accounts Only Personal Accounts Only Real Accounts All accounts as in Double Entry System

Explanation: Pure Single Entry, largely theoretical, records only personal accounts of debtors and creditors, with no cash, real, or nominal accounts.

30. "Simple Single Entry" system maintains which of the following, in addition to personal accounts?

Complete subsidiary books and nominal accounts Only nominal accounts Cash Book Only real accounts of fixed assets

Explanation: Simple Single Entry maintains personal accounts along with a Cash Book, but no real or nominal accounts.

31. "Quasi Single Entry" system, the most complete form of single entry, maintains personal accounts, a Cash Book, and additionally:

Certain subsidiary books such as Sales Book, Purchases Book, and Bills Book A full set of nominal and real accounts as in double entry Only a Petty Cash Book No records other than personal accounts

Explanation: Quasi Single Entry additionally keeps certain subsidiary books (Sales, Purchases, Bills), though real and nominal ledger accounts are still not fully maintained.

32. A major disadvantage of the Single Entry System is that:

It requires highly skilled accounting staff Arithmetical accuracy of the records cannot be verified since a Trial Balance cannot be prepared It is more expensive to maintain than double entry It is legally prohibited for all businesses in India

Explanation: Because nominal and real accounts are largely missing, a Trial Balance cannot be drawn up, so arithmetical accuracy cannot be independently checked.

33. While computing profit under the Net Worth Method, any Additional Capital introduced by the proprietor during the year is:

Added to Closing Capital only, with no further adjustment Ignored completely in the computation Added to Drawings Deducted from the increase in capital, since it did not arise from business profit

Explanation: Additional capital increases net worth for reasons unrelated to trading operations, so it must be deducted to isolate the true profit figure.

34. While computing profit under the Net Worth Method, Drawings made by the proprietor during the year should be:

Added back to the increase in capital, since drawings reduce capital without reducing profit Deducted from Closing Capital and ignored thereafter Treated as a business liability Added to Additional Capital introduced

Explanation: Drawings reduce capital but are a personal withdrawal, not a trading loss, so they must be added back to correctly determine profit.

35. Under the Single Entry System, which of the following statements cannot be prepared directly without significant reconstruction and adjustment of records?

A rough Cash Summary A list of Debtors and Creditors Trading and Profit & Loss Account and Balance Sheet A Statement of Affairs (estimated)

Explanation: Due to the absence of complete real and nominal accounts, a proper Trading and Profit & Loss Account and Balance Sheet cannot be directly extracted; they require reconstruction of missing figures.

SECTION III: Public Financial Management System (PFMS) [Questions 36 to 50]

36. PFMS is the abbreviation for:

Provident Fund Management System Public Financial Management System Personal Finance Monitoring Software Public Fund Marketing Scheme

Explanation: PFMS stands for Public Financial Management System, a web-based platform of the Government of India.

37. PFMS is administered and managed by which office of the Government of India?

Office of the Controller General of Accounts (CGA) Reserve Bank of India Comptroller and Auditor General of India Securities and Exchange Board of India

Explanation: PFMS is owned, managed, and operated by the Office of the Controller General of Accounts (CGA) under the Ministry of Finance.

38. PFMS operates under which Ministry/Department of the Government of India?

Ministry of Rural Development Ministry of Statistics and Programme Implementation Department of Expenditure, Ministry of Finance Ministry of Corporate Affairs

Explanation: PFMS functions under the Department of Expenditure, Ministry of Finance, through the office of the CGA.

39. PFMS was originally launched as a plan scheme monitoring initiative under the name:

National Fund Tracking System Direct Benefit Transfer Portal Government e-Marketplace Central Plan Scheme Monitoring System (CPSMS)

Explanation: PFMS began as CPSMS, aimed at tracking funds released under Plan schemes, before being expanded and rebranded as PFMS.

40. The Central Plan Scheme Monitoring System (the precursor to PFMS) was originally launched in the year:

2001 2009 2016 2020

Explanation: CPSMS was launched in 2009 as a pilot initiative to track fund flow to implementing agencies of centrally sponsored/plan schemes.

41. The core objective of PFMS is to establish a system that:

Provides real-time, online tracking and reporting of fund releases and utilization under various government schemes Fixes the interest rates on government securities Regulates the stock market Issues currency notes

Explanation: PFMS is essentially a real-time, online payment-cum-accounting and fund-tracking system for government scheme expenditure.

42. PFMS enables the government to track, in real time, which of the following?

Only the annual budget speech Only export-import trade statistics Fund releases, transfers, and expenditure by implementing agencies of government schemes Only private company share prices

Explanation: PFMS captures the entire fund flow chain — from release by the government down to expenditure at the implementing agency level.

43. PFMS is technologically integrated with which banking infrastructure to facilitate electronic payments?

Cryptocurrency exchanges Core Banking Solution (CBS) of banks Foreign stock exchanges Postal money order system only

Explanation: PFMS interfaces with the Core Banking Solution (CBS) of banks and RBI to enable electronic fund transfer and real-time payment tracking.

44. In the context of PFMS, "SNA" stands for:

State Nodal Auditor Statutory National Account Standard Norms Agency Single Nodal Agency

Explanation: SNA (Single Nodal Agency) is the model under which State Governments route Centrally Sponsored Scheme funds through one designated nodal bank account monitored via PFMS.

45. The main purpose of implementing the Single Nodal Agency (SNA) model for Centrally Sponsored Schemes is to:

Ensure just-in-time release of central funds and prevent parking/idling of unutilized funds by states Eliminate the need for state government budgets Transfer control of all state schemes to private banks Abolish Centrally Sponsored Schemes altogether

Explanation: The SNA model ensures central funds are released only to the extent of immediate requirement, improving cash management and reducing idle balances with states.

46. PFMS plays a critical role in supporting which mode of welfare payment directly to beneficiaries' bank accounts?

Postal Money Order Cash payment through village patwari Direct Benefit Transfer (DBT) Barter exchange of goods

Explanation: PFMS is the backbone infrastructure that enables Direct Benefit Transfer (DBT), crediting scheme benefits electronically straight into beneficiaries' bank accounts.

47. Which of the following entities are typically required to register and report on the PFMS portal?

Only foreign embassies Implementing agencies of Central Sector and Centrally Sponsored Schemes, including State Treasuries and Autonomous Bodies Only private unlisted companies Only individual income-tax payers

Explanation: PFMS requires registration and periodic reporting by government implementing/executing agencies, State Treasuries, and Autonomous Bodies receiving scheme funds.

48. From an accountability standpoint, the overall contribution of PFMS to Public Financial Management is that it:

Strengthens transparency, real-time monitoring, and accountability in the utilization of government funds Replaces the need for the Comptroller and Auditor General's audit Removes the requirement of maintaining any government accounts Is used solely for private sector payroll processing

Explanation: By enabling real-time tracking of fund flow, PFMS enhances fiscal transparency and public accountability, though it does not replace statutory audit by the CAG.

49. PFMS data and dashboards are commonly used by policymakers primarily for:

Setting the repo rate Determining GST slab rates Conducting company share valuations Monitoring scheme-wise fund utilization and generating MIS reports for evidence-based decision-making

Explanation: PFMS provides Management Information System (MIS) reports and dashboards that help track scheme-wise utilization of funds for informed policy decisions.

50. Compared to the traditional manual system of releasing and monitoring government scheme funds, PFMS primarily improves:

The market capitalization of listed companies The speed, transparency, and traceability of fund flow from release to final utilization The interest rate charged on personal loans The customs duty structure on imports

Explanation: By digitizing the entire fund-flow chain, PFMS drastically reduces delays and lack of visibility that plagued the earlier manual/offline system of scheme fund release and reporting.

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