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161. The term 'Annual Financial Statement' in the context of the Union Budget (which today includes Railway finances) generally refers to:
- A. The statement of estimated receipts and expenditure of the Government of India for a financial year, presented under the Constitution
- B. A statement issued only after Parliament dissolves
- C. A document prepared only by a zonal railway's audit branch
- D. A private company's quarterly earnings report
Answer: The statement of estimated receipts and expenditure of the Government of India for a financial year, presented under the Constitution
Explanation: The statement of estimated receipts and expenditure of the Government of India for a financial year, presented under the Constitution — verified fact for Railway Accounts Group B LDCE.
162. Why is proper accounting classification between 'Capital' and 'Revenue' heads considered essential for financial discipline in a large organization like Indian Railways?
- A. It is required solely for aesthetic presentation of the balance sheet
- B. It has no real financial implication and is a matter of preference only
- C. It prevents recurring operational costs from being wrongly funded through borrowing meant for asset creation, and vice versa
- D. It is required only in years when there is a change of government
Answer: It prevents recurring operational costs from being wrongly funded through borrowing meant for asset creation, and vice versa
Explanation: It prevents recurring operational costs from being wrongly funded through borrowing meant for asset creation, and vice versa — verified fact for Railway Accounts Group B LDCE.
163. The general concept of a railway 'dividend' payable to the General Revenues, as historically applied, referred to:
- A. A return paid by the Railways on capital invested in it by the General Government, similar in concept to a return on capital
- B. A tax paid by railway employees on their salary
- C. A cash bonus paid directly to railway passengers
- D. A subsidy paid by the Railways to private companies
Answer: A return paid by the Railways on capital invested in it by the General Government, similar in concept to a return on capital
Explanation: A return paid by the Railways on capital invested in it by the General Government, similar in concept to a return on capital — verified fact for Railway Accounts Group B LDCE.
164. Which of these is generally true about capital-at-charge in the traditional Indian Railways financial framework?
- A. It represented cash physically held in railway station safes
- B. It was money borrowed only from foreign private banks
- C. It was an informal term with no accounting significance
- D. It represented capital provided by the General Exchequer to the Railways, historically attracting a dividend obligation
Answer: It represented capital provided by the General Exchequer to the Railways, historically attracting a dividend obligation
Explanation: It represented capital provided by the General Exchequer to the Railways, historically attracting a dividend obligation — verified fact for Railway Accounts Group B LDCE.
165. The 'Pension Fund' maintained for railway employees is generally used to:
- A. Fund the construction of new railway lines only
- B. Meet the pension liability of retired railway employees under the applicable pension scheme
- C. Pay dividends to private shareholders
- D. Meet the cost of rolling stock purchase
Answer: Meet the pension liability of retired railway employees under the applicable pension scheme
Explanation: Meet the pension liability of retired railway employees under the applicable pension scheme — verified fact for Railway Accounts Group B LDCE.
166. Why is a mid-year 'Revised Estimate' useful in railway budgetary practice?
- A. It eliminates the need for a Budget Estimate in future years
- B. It is purely a ceremonial exercise with no financial use
- C. It replaces the need for any final accounts
- D. It allows more realistic forecasting based on actual trends and helps in better financial control for the remainder of the year
Answer: It allows more realistic forecasting based on actual trends and helps in better financial control for the remainder of the year
Explanation: It allows more realistic forecasting based on actual trends and helps in better financial control for the remainder of the year — verified fact for Railway Accounts Group B LDCE.
167. A 'Revised Estimate' (RE) in railway finance is prepared:
- A. During the course of the financial year, to update the Budget Estimate in light of actual trends observed so far
- B. Once every decade
- C. Before the Budget Estimate is even prepared
- D. Only after the accounts are closed and audited
Answer: During the course of the financial year, to update the Budget Estimate in light of actual trends observed so far
Explanation: During the course of the financial year, to update the Budget Estimate in light of actual trends observed so far — verified fact for Railway Accounts Group B LDCE.
168. A 'Budget Estimate' (BE) in railway finance is prepared:
- A. Only once every five years
- B. Before the start of the financial year, as an initial forecast of receipts and expenditure
- C. Only when the CAG specifically demands it
- D. Only after the financial year has ended
Answer: Before the start of the financial year, as an initial forecast of receipts and expenditure
Explanation: Before the start of the financial year, as an initial forecast of receipts and expenditure — verified fact for Railway Accounts Group B LDCE.
169. The distinction between 'Budget Estimate', 'Revised Estimate', and 'Actuals' in railway finance generally reflects:
- A. Successive stages of financial forecasting and reporting — initial estimate, mid-year revision, and final realized figures
- B. Three names for exactly the same figure
- C. Three unrelated and independent sets of accounts with no connection
- D. A distinction that applies only to capital expenditure, never revenue
Answer: Successive stages of financial forecasting and reporting — initial estimate, mid-year revision, and final realized figures
Explanation: Successive stages of financial forecasting and reporting — initial estimate, mid-year revision, and final realized figures — verified fact for Railway Accounts Group B LDCE.
170. 'Provisional actuals' in railway financial reporting generally refers to:
- A. The figures reported five years in advance
- B. Preliminary, not-yet-final figures of actual receipts/expenditure compiled soon after the year-end, before final accounts are closed
- C. The budget estimate for the next financial year
- D. The final audited accounts submitted to Parliament
Answer: Preliminary, not-yet-final figures of actual receipts/expenditure compiled soon after the year-end, before final accounts are closed
Explanation: Preliminary, not-yet-final figures of actual receipts/expenditure compiled soon after the year-end, before final accounts are closed — verified fact for Railway Accounts Group B LDCE.
171. Why is it important that railway accounts close and are finalized with reference to a fixed financial year (1 April to 31 March)?
- A. Because it is a purely arbitrary date with no financial significance
- B. Because railway trains only run during this period
- C. Because audit is not possible in any other period
- D. It enables periodic, comparable reporting of financial performance and proper budgetary control
Answer: It enables periodic, comparable reporting of financial performance and proper budgetary control
Explanation: It enables periodic, comparable reporting of financial performance and proper budgetary control — verified fact for Railway Accounts Group B LDCE.
172. The concept of a 'financial year' as used in Indian government/railway accounting runs from:
- A. 1 April to 31 March
- B. 1 July to 30 June
- C. 1 October to 30 September
- D. 1 January to 31 December
Answer: 1 April to 31 March
Explanation: 1 April to 31 March — verified fact for Railway Accounts Group B LDCE.
173. Why does Indian Railways maintain separate accounting heads for 'Ordinary Working Expenses' as distinct from 'Appropriation to Depreciation Reserve Fund'?
- A. Because they are legally identical and the distinction is purely nominal
- B. Because day-to-day running costs and provision for future asset replacement serve different purposes and must be tracked separately
- C. Because working expenses are never audited
- D. Because the Depreciation Reserve Fund is not really used for railway purposes
Answer: Because day-to-day running costs and provision for future asset replacement serve different purposes and must be tracked separately
Explanation: Because day-to-day running costs and provision for future asset replacement serve different purposes and must be tracked separately — verified fact for Railway Accounts Group B LDCE.
174. 'Net Revenue' of the Railways in the traditional financial framework is generally arrived at by deducting from gross earnings:
- A. Ordinary working expenses and appropriation to the Depreciation Reserve Fund/Pension Fund, among other charges
- B. Nothing; net revenue equals gross earnings by definition
- C. Only the salary of the Railway Board Chairman
- D. Only the cost of uniforms issued to staff
Answer: Ordinary working expenses and appropriation to the Depreciation Reserve Fund/Pension Fund, among other charges
Explanation: Ordinary working expenses and appropriation to the Depreciation Reserve Fund/Pension Fund, among other charges — verified fact for Railway Accounts Group B LDCE.
175. A lower operating ratio for a railway system generally indicates:
- A. Better financial efficiency, since a smaller share of earnings is consumed by working expenses
- B. No relationship at all to financial performance
- C. That the railway has stopped freight operations entirely
- D. Worse financial efficiency in all cases
Answer: Better financial efficiency, since a smaller share of earnings is consumed by working expenses
Explanation: Better financial efficiency, since a smaller share of earnings is consumed by working expenses — verified fact for Railway Accounts Group B LDCE.
176. The 'operating ratio' of a railway, a key financial performance indicator, is generally defined as:
- A. Working expenses expressed as a percentage of gross earnings/revenue
- B. Passenger earnings divided by freight earnings
- C. Total capital expenditure divided by total route kilometres
- D. Number of employees divided by number of stations
Answer: Working expenses expressed as a percentage of gross earnings/revenue
Explanation: Working expenses expressed as a percentage of gross earnings/revenue — verified fact for Railway Accounts Group B LDCE.
177. In railway accounting terminology, 'working expenses' generally refers to:
- A. Only pension disbursed to retired staff
- B. Only expenditure on brand-new construction projects
- C. Only interest paid on capital borrowed from the market
- D. Ordinary expenditure incurred in running and maintaining railway operations, such as staff costs, fuel, and maintenance
Answer: Ordinary expenditure incurred in running and maintaining railway operations, such as staff costs, fuel, and maintenance
Explanation: Ordinary expenditure incurred in running and maintaining railway operations, such as staff costs, fuel, and maintenance — verified fact for Railway Accounts Group B LDCE.
178. In railway accounting terminology, 'earnings' generally refers to:
- A. Only foreign exchange earned from railway equipment exports
- B. Only the net profit remaining after all expenses
- C. Only the salary paid to Railway Board members
- D. Gross revenue receipts from railway operations such as freight and passenger traffic
Answer: Gross revenue receipts from railway operations such as freight and passenger traffic
Explanation: Gross revenue receipts from railway operations such as freight and passenger traffic — verified fact for Railway Accounts Group B LDCE.
179. A 'grant-in-aid' as generally understood in government financial terminology refers to:
- A. A fine imposed on a railway employee
- B. Financial assistance given by government to another body/institution for a specific purpose
- C. A type of freight rebate given to traders
- D. A loan that must always be repaid with commercial interest
Answer: Financial assistance given by government to another body/institution for a specific purpose
Explanation: Financial assistance given by government to another body/institution for a specific purpose — verified fact for Railway Accounts Group B LDCE.
180. 'Excess expenditure' over a sanctioned grant, in government/railway financial control, generally requires:
- A. Immediate dismissal of the accounts officer with no review
- B. Regularization through the competent legislative/administrative process, since expenditure beyond sanction is otherwise irregular
- C. Conversion of the excess into a personal loan to the officer concerned
- D. No action at all, since it is automatically considered approved
Answer: Regularization through the competent legislative/administrative process, since expenditure beyond sanction is otherwise irregular
Explanation: Regularization through the competent legislative/administrative process, since expenditure beyond sanction is otherwise irregular — verified fact for Railway Accounts Group B LDCE.
181. 'Savings' in the budgetary sense in railway finance generally means:
- A. Money deposited by an employee in a personal savings account
- B. The profit made from ticket sales alone
- C. The unspent balance of a sanctioned grant/appropriation at the end of the financial year or a review period
- D. Interest earned on railway borrowings
Answer: The unspent balance of a sanctioned grant/appropriation at the end of the financial year or a review period
Explanation: The unspent balance of a sanctioned grant/appropriation at the end of the financial year or a review period — verified fact for Railway Accounts Group B LDCE.
182. Re-appropriation of funds between a Capital head and a Revenue head is generally treated as:
- A. Always freely permissible without any restriction
- B. Only permissible on weekends
- C. Compulsory at the end of every quarter
- D. Not permissible, since capital and revenue expenditure are of a fundamentally different nature
Answer: Not permissible, since capital and revenue expenditure are of a fundamentally different nature
Explanation: Not permissible, since capital and revenue expenditure are of a fundamentally different nature — verified fact for Railway Accounts Group B LDCE.
183. What is generally meant by 're-appropriation' of funds in government/railway financial management?
- A. Doubling the sanctioned budget automatically at year end
- B. Transfer of savings from one unit of appropriation to meet excess expenditure under another unit, within the same grant, subject to prescribed conditions
- C. Permanently cancelling the entire budget for a department
- D. Transferring funds from one financial year to the next without limit
Answer: Transfer of savings from one unit of appropriation to meet excess expenditure under another unit, within the same grant, subject to prescribed conditions
Explanation: Transfer of savings from one unit of appropriation to meet excess expenditure under another unit, within the same grant, subject to prescribed conditions — verified fact for Railway Accounts Group B LDCE.
184. The term 'appropriation' in government/railway financial parlance generally refers to:
- A. The total length of track in a zone
- B. The amount of money authorized by competent authority to be spent under a particular grant or head
- C. The total number of railway employees in a division
- D. The amount of money actually collected in freight earnings
Answer: The amount of money authorized by competent authority to be spent under a particular grant or head
Explanation: The amount of money authorized by competent authority to be spent under a particular grant or head — verified fact for Railway Accounts Group B LDCE.
185. A 'suspense head' in government/railway accounting is generally used for:
- A. Permanently writing off all disputed expenditure without further action
- B. Recording only pension payments
- C. Temporarily recording transactions whose final classification is not yet known, pending clearance
- D. Recording only capital expenditure
Answer: Temporarily recording transactions whose final classification is not yet known, pending clearance
Explanation: Temporarily recording transactions whose final classification is not yet known, pending clearance — verified fact for Railway Accounts Group B LDCE.
186. Why is a uniform and standardized system of accounting classification important across all zonal railways?
- A. It is legally required only for the largest zone
- B. It removes the need for each zone to maintain any accounts
- C. It allows consolidation, comparison, and meaningful analysis of financial data across the entire railway system
- D. It allows each zone to use a completely different currency
Answer: It allows consolidation, comparison, and meaningful analysis of financial data across the entire railway system
Explanation: It allows consolidation, comparison, and meaningful analysis of financial data across the entire railway system — verified fact for Railway Accounts Group B LDCE.
187. Classification of railway expenditure under proper heads of account (e.g., by function, by unit) primarily serves to:
- A. Eliminate the requirement for audit
- B. Avoid the need for any budget altogether
- C. Make the accounts deliberately harder for management to interpret
- D. Enable meaningful analysis, budgeting, and control of expenditure by purpose and responsibility
Answer: Enable meaningful analysis, budgeting, and control of expenditure by purpose and responsibility
Explanation: Enable meaningful analysis, budgeting, and control of expenditure by purpose and responsibility — verified fact for Railway Accounts Group B LDCE.
188. What is a 'head of account' in the classification structure of government/railway accounts?
- A. The name of the officer who signs the voucher
- B. The bank branch where railway funds are deposited
- C. The audit report submitted at year end
- D. A specific classification code/category under which a particular type of receipt or expenditure is recorded
Answer: A specific classification code/category under which a particular type of receipt or expenditure is recorded
Explanation: A specific classification code/category under which a particular type of receipt or expenditure is recorded — verified fact for Railway Accounts Group B LDCE.
189. Under general canons of financial propriety followed in government/railway expenditure, a public servant is generally expected to exercise the same care in spending public money as:
- A. Only the CAG needs to exercise during audit
- B. A person of ordinary prudence would exercise in spending their own money
- C. No care is required since it is not personal money
- D. Only the Finance Ministry needs to exercise while sanctioning it
Answer: A person of ordinary prudence would exercise in spending their own money
Explanation: A person of ordinary prudence would exercise in spending their own money — verified fact for Railway Accounts Group B LDCE.
190. The principle that expenditure should not be prima facie more than the occasion demands is generally known as the canon of:
- A. Depreciation accounting
- B. Financial propriety
- C. Double-entry bookkeeping
- D. Cash-basis accounting
Answer: Financial propriety
Explanation: Financial propriety — verified fact for Railway Accounts Group B LDCE.
191. Which of these is a core general principle of public sector/government accounting (including railway accounts)?
- A. Public money should be spent only for the purpose for which it was sanctioned/appropriated
- B. Only capital expenditure needs to be accounted for
- C. Public money need not be accounted for once received
- D. Any government department may spend public money for any purpose it later decides is convenient
Answer: Public money should be spent only for the purpose for which it was sanctioned/appropriated
Explanation: Public money should be spent only for the purpose for which it was sanctioned/appropriated — verified fact for Railway Accounts Group B LDCE.
192. The general principle followed for meeting the cost of renewal/replacement of an already-existing railway asset (as opposed to creating a new one) is that it should generally be met from:
- A. Fresh market borrowing only, never from DRF
- B. The Depreciation Reserve Fund
- C. The General Budget of the Union Government directly
- D. Passenger fare hikes announced the same year
Answer: The Depreciation Reserve Fund
Explanation: The Depreciation Reserve Fund — verified fact for Railway Accounts Group B LDCE.
193. An example of railway expenditure that would normally be classified as 'Revenue' expenditure is:
- A. Routine repair and maintenance of an existing track section
- B. Acquisition of land for a new yard
- C. Construction of a brand-new railway line
- D. Purchase of new rolling stock for network expansion
Answer: Routine repair and maintenance of an existing track section
Explanation: Routine repair and maintenance of an existing track section — verified fact for Railway Accounts Group B LDCE.
194. An example of railway expenditure that would normally be classified as 'Capital' expenditure is:
- A. Monthly salary payment to running staff
- B. Construction of a new railway line or a new bridge
- C. Purchase of stationery for a divisional office
- D. Payment of electricity bill for a station
Answer: Construction of a new railway line or a new bridge
Explanation: Construction of a new railway line or a new bridge — verified fact for Railway Accounts Group B LDCE.
195. Why does Indian Railways maintain a distinction between 'Capital' expenditure and 'Revenue' expenditure?
- A. Because only capital expenditure requires a budget
- B. Because revenue expenditure is never audited
- C. Because capital expenditure creates lasting assets while revenue expenditure is for running day-to-day operations, and they must be accounted for and financed differently
- D. Because capital expenditure is illegal without CAG's prior written permission
Answer: Because capital expenditure creates lasting assets while revenue expenditure is for running day-to-day operations, and they must be accounted for and financed differently
Explanation: Because capital expenditure creates lasting assets while revenue expenditure is for running day-to-day operations, and they must be accounted for and financed differently — verified fact for Railway Accounts Group B LDCE.
196. Ordinary working expenses of Indian Railways (staff salaries, fuel, maintenance, etc.) are charged to which broad head?
- A. Capital only
- B. Revenue (Ordinary Working Expenses)
- C. Development Fund only
- D. Depreciation Reserve Fund only
Answer: Revenue (Ordinary Working Expenses)
Explanation: Revenue (Ordinary Working Expenses) — verified fact for Railway Accounts Group B LDCE.
197. 'Revenue' as a classification in Railway finance broadly refers to:
- A. Income earned from railway operations (like freight and passenger earnings) and the ordinary working expenses incurred to earn it
- B. Only the value of new assets created during the year
- C. Only the pension liability of retired staff
- D. Only the money borrowed from the market during the year
Answer: Income earned from railway operations (like freight and passenger earnings) and the ordinary working expenses incurred to earn it
Explanation: Income earned from railway operations (like freight and passenger earnings) and the ordinary working expenses incurred to earn it — verified fact for Railway Accounts Group B LDCE.
198. Which fund among Capital, Depreciation Reserve Fund (DRF), and Development Fund (DF) is specifically intended to provide for the replacement of assets as they wear out over their service life?
- A. Development Fund (DF)
- B. Depreciation Reserve Fund (DRF)
- C. None of these; replacement is always funded from Capital only
- D. Capital
Answer: Depreciation Reserve Fund (DRF)
Explanation: Depreciation Reserve Fund (DRF) — verified fact for Railway Accounts Group B LDCE.
199. The 'Development Fund' (DF) in Indian Railways finance is generally used for financing which kind of works?
- A. Passenger and staff amenities, operational safety works, and labour welfare works not classified as pure capital works
- B. Only defence-related railway works
- C. Only construction of brand-new railway lines from scratch
- D. Only repayment of foreign loans
Answer: Passenger and staff amenities, operational safety works, and labour welfare works not classified as pure capital works
Explanation: Passenger and staff amenities, operational safety works, and labour welfare works not classified as pure capital works — verified fact for Railway Accounts Group B LDCE.
200. Contributions to the Depreciation Reserve Fund are generally drawn from:
- A. Only from the General Budget of the Union Government
- B. Only from passenger fare surcharges collected separately
- C. Railway revenue, as a charge before arriving at net revenue surplus
- D. Only from external market borrowings
Answer: Railway revenue, as a charge before arriving at net revenue surplus
Explanation: Railway revenue, as a charge before arriving at net revenue surplus — verified fact for Railway Accounts Group B LDCE.
201. The 'Depreciation Reserve Fund' (DRF) in Indian Railways finance is primarily meant for:
- A. Paying interest on market borrowings only
- B. Funding new passenger amenities exclusively
- C. Replacement of over-aged assets that have worn out or become obsolete
- D. Meeting daily fuel expenses
Answer: Replacement of over-aged assets that have worn out or become obsolete
Explanation: Replacement of over-aged assets that have worn out or become obsolete — verified fact for Railway Accounts Group B LDCE.
202. Which of the following best describes 'Capital' as a classification head in Indian Railways finance?
- A. Funds that must be spent within the same financial year they are sanctioned
- B. Funds used exclusively for paying pensions
- C. Funds used only for day-to-day salary payments
- D. Funds used for creating new assets or substantial additions to the railway system
Answer: Funds used for creating new assets or substantial additions to the railway system
Explanation: Funds used for creating new assets or substantial additions to the railway system — verified fact for Railway Accounts Group B LDCE.
203. Indian Railways' accounts are commonly said to follow 'commercial accounting principles' in the sense that they:
- A. Are audited only by private chartered accountants and never by government audit
- B. Pay corporate income tax like a private company
- C. Maintain accounts on double-entry principles similar to a commercial/business undertaking, given its scale of operations
- D. Are listed on the stock exchange
Answer: Maintain accounts on double-entry principles similar to a commercial/business undertaking, given its scale of operations
Explanation: Maintain accounts on double-entry principles similar to a commercial/business undertaking, given its scale of operations — verified fact for Railway Accounts Group B LDCE.
204. What is the main purpose of maintaining accounts on a double-entry basis in an organization like the Railways?
- A. To avoid the need for a trial balance
- B. To eliminate the need for classification of expenditure
- C. To ensure arithmetical accuracy and provide a complete, cross-checked record of all financial transactions
- D. To make the accounts more difficult for auditors to check
Answer: To ensure arithmetical accuracy and provide a complete, cross-checked record of all financial transactions
Explanation: To ensure arithmetical accuracy and provide a complete, cross-checked record of all financial transactions — verified fact for Railway Accounts Group B LDCE.
205. In double-entry bookkeeping as applied to railway accounts, if an asset account is debited, the corresponding effect must be:
- A. An equal credit somewhere else in the accounts, keeping total debits equal to total credits
- B. Another debit of the same amount in a different account
- C. No corresponding entry is required
- D. A reduction in the audit requirement
Answer: An equal credit somewhere else in the accounts, keeping total debits equal to total credits
Explanation: An equal credit somewhere else in the accounts, keeping total debits equal to total credits — verified fact for Railway Accounts Group B LDCE.
206. What does the general principle of 'double-entry bookkeeping' state?
- A. Every transaction must be entered twice in the same account
- B. Only expenditure transactions require an entry
- C. Every transaction has a dual aspect — a debit entry and a corresponding credit entry of equal amount
- D. Only capital transactions require a ledger entry
Answer: Every transaction has a dual aspect — a debit entry and a corresponding credit entry of equal amount
Explanation: Every transaction has a dual aspect — a debit entry and a corresponding credit entry of equal amount — verified fact for Railway Accounts Group B LDCE.
207. Indian Railways' core financial accounts have historically been maintained mainly on which basis, while progressively exploring accrual-based elements for management information?
- A. Zero-based accounting basis exclusively
- B. Cash basis
- C. Full accrual basis exclusively since inception
- D. Barter basis
Answer: Cash basis
Explanation: Cash basis — verified fact for Railway Accounts Group B LDCE.
208. Compared to cash-basis accounting, a key advantage claimed for accrual-basis accounting is that it:
- A. Gives a more complete picture of the true financial position, including assets, liabilities, and depreciation
- B. Eliminates the need for any audit
- C. Automatically balances the budget every year
- D. Is simpler to operate for a very large organization
Answer: Gives a more complete picture of the true financial position, including assets, liabilities, and depreciation
Explanation: Gives a more complete picture of the true financial position, including assets, liabilities, and depreciation — verified fact for Railway Accounts Group B LDCE.
209. Under accrual-basis accounting, income and expenditure are recognised when:
- A. Only when the CAG approves them
- B. Only at the end of the financial year
- C. They are earned or incurred, irrespective of actual cash movement
- D. Cash is actually received or paid
Answer: They are earned or incurred, irrespective of actual cash movement
Explanation: They are earned or incurred, irrespective of actual cash movement — verified fact for Railway Accounts Group B LDCE.
210. Under cash-basis accounting, as followed in government/railway accounts, a transaction is recorded when:
- A. The liability or income is merely incurred or earned, regardless of cash movement
- B. Cash is actually received or paid
- C. The budget for it is first approved
- D. The audit of the transaction is completed
Answer: Cash is actually received or paid
Explanation: Cash is actually received or paid — verified fact for Railway Accounts Group B LDCE.
211. Government accounting in India, including railway accounts, is traditionally maintained mainly on which basis?
- A. Hybrid basis with no cash element
- B. Cash basis
- C. Mark-to-market basis
- D. Accrual basis
Answer: Cash basis
Explanation: Cash basis — verified fact for Railway Accounts Group B LDCE.
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