CMA Final CFR MCQs of Theory Topics

Government Accounting in India
1. Government accounting is primarily concerned with:

A) Recording and summarizing financial transactions in private companies.
B) Managing personal finances of individuals.
C) Recording, classifying, and summarizing financial transactions of government
entities.
D) Analysing market trends and making investment decisions.
Solution: C) Recording, classifying, and summarizing financial transactions of

government entities.
2. Which of the following is NOT a characteristic of government accounting?

A) Systematic and scientific recording of financial transactions.
B) Transparent reporting of government revenues and expenditures.
C) Focusing on personal financial management.
D) Providing information on the collection and utilization of public funds.
Solution: C) Focusing on personal financial management.
3. What is the purpose of government accounting?

A) To maximize profits for government entities.
B) To ensure accurate and transparent reporting of financial activities.
C) To analyse market trends and make investment decisions.
D) To manage personal finances of government officials.
Solution: B) To ensure accurate and transparent reporting of financial activities.
CMA Final – Corporate Financial Reporting (CFR) CA Bishnu Kedia

4. Which of the following is NOT a feature of government accounting?
A) Specific system of accounting for government entities.
B) Reporting of the utilization of public funds.
C) Use of the accrual accounting method.
D) Auditing of government department accounts.
Solution: C) Use of the accrual accounting method.
5. What is the purpose of reporting the utilization of public funds in government

accounting?
A) To calculate profits and losses.
B) To maintain law and order in the country.
C) To reveal how public funds and properties have been used.
D) To provide services to the society.
Solution: C) To reveal how public funds and properties have been used.
6. Why is auditing an important feature of government accounting?

A) To ensure proper governance and prevent misuse of public funds.
B) To calculate financial ratios and indicators.
C) To make investment decisions.
D) To prepare financial statements.
Solution: A) To ensure proper governance and prevent misuse of public funds.
7. Which of the following is NOT an objective of government accounting?

A) Recording financial transactions of government organizations.
B) Preventing misappropriation of government properties.
C) Facilitating the estimation of annual budgets.
D) Maximizing profits for the government.
Solution: D) Maximizing profits for the government.
Theory Topics – MCQ Questions CA Bishnu Kedia

8. Government accounting aims to provide reliable financial data and information
about the operation of:
A) Private corporations.
B) Public funds.
C) Non-profit organizations.
D) Individual taxpayers.
Solution: B) Public funds.
9. Which of the following is not a principle of government accounting?

A) Classification of expenditures
B) Cash basis of accounting
C) Accrual basis of accounting
D) Based on the annual budget
Solution: C) Accrual basis of accounting
10. Which part of government accounts includes the Consolidated Fund,

Contingency Fund, and Public Account?
A) Revenue Fund
B) Development Fund
C) Capital Fund
D) Consolidated Fund
Solution: D) Consolidated Fund
11. Which of the following statements is true regarding government accounting?

A) It focuses on profit calculation.
B) It follows the Generally Accepted Accounting Principles (GAAP).
C) It is maintained by business organizations.
D) It records and reports the utilization of public funds.

Solution: D) It records and reports the utilization of public funds.
12. What is the basis of government accounting?

A) Cash basis
B) Accrual basis
C) Hybrid basis
D) Both cash and accrual basis
Solution: A) Cash basis
13. Who audits the books of accounts maintained under government accounting?
A) Professional auditors
B) Internal auditors
C) Government-appointed auditors (Auditor General Office)
D) External auditors
Solution: C) Government-appointed auditors (Auditor General Office)
14. What is the main objective of commercial accounting?

A) Reporting the utilization of public funds
B) Disclosing the financial position of the entity
C) Following the financial rules and provisions
D) Maintaining the government budgeting system
Solution: B) Disclosing the financial position of the entity
15. Who is responsible for auditing the receipts and expenditure of the Government
of India and state governments in India?
A) President of India
B) Prime Minister of India
C) Comptroller and Auditor General (C&AG) of India
D) Chief Justice of India

Solution: C) Comptroller and Auditor General (C&AG) of India
16. The Comptroller and Auditor General (C&AG) of India conducts the
supplementary audit of which types of companies?
A) Banking and insurance companies
B) Government-owned corporations
C) Private sector companies
D) Non-profit organizations
Solution: B) Government-owned corporations
17. How long is the tenure of the Comptroller and Auditor General (C&AG) of
India?
A) 4 years
B) 6 years
C) 8 years
D) 10 years
Solution: B) 6 years
18. The independence of the Comptroller and Auditor General (C&AG) of India is
essential to ensure:
A) Popularly elected chamber of the legislature
B) Accountability of the Prime Minister and Cabinet
C) Parliamentary scrutiny of financial activities
D) Executive control over audit and accounts system
Solution: C) Parliamentary scrutiny of financial activities

19. The Comptroller and Auditor General (C&AG) of India is responsible for
auditing the accounts of:
A) Union Government only
B) State Governments only
C) Government-owned corporations only
D) Union Government, State Governments, and bodies substantially financed
by the government
Solution: D) Union Government, State Governments, and bodies substantially

financed by the government
20. In case of grants or loans given to other authorities or bodies, the Comptroller
and Auditor General (C&AG) of India has the right to scrutinize the procedures
if the amount is:
A) Less than ₹1 crore
B) More than ₹1 crore
C) Less than ₹10 crore
D) More than ₹10 crore
Solution: B) More than ₹1 crore
21. The Comptroller and Auditor General (C&AG) of India has the authority to
audit the accounts of:
A) Government companies as per the Companies Act, 1956
B) Corporations established by law made by Parliament
C) Both government companies and corporations
D) None of the above
Solution: C) Both government companies and corporations

22. Who can request the Comptroller and Auditor-General (CAG) to audit the
accounts of a corporation established by law?
A) The President of India
B) The Governor of a State or the Administrator of a Union territory having a
Legislative Assembly
C) The Prime Minister of India
D) The Chief Justice of India
Solution: B) The Governor of a State or the Administrator of a Union territory

having a Legislative Assembly.
23. Under what circumstances can the CAG audit the accounts of a corporation?
A) If the corporation is established by the Central Government
B) If the corporation is established by the State Government
C) If the Governor or Administrator deems it necessary in the public interest
D) If the CAG requests the corporation to undergo an audit
Solution: C) If the Governor or Administrator deems it necessary in the public

interest.
24. What is the role of the Comptroller and Auditor-General (CAG) in the audit
of corporation accounts?
A) The CAG conducts the audit independently without any consultation.
B) The CAG audits the accounts only after receiving a request from the
corporation.
C) The CAG audits the accounts after consultation with the corporation and
the concerned government.
D) The CAG has no role in the audit of corporation accounts.
Solution: C) The CAG audits the accounts after consultation with the corporation
and the concerned government.

25. Where should the reports of the Comptroller and Auditor-General (CAG)
regarding the audit of government companies and corporations be submitted?
A) Parliament and State Legislature
B) State Government only
C) Central Government only
D) Local Municipal Authority
Solution: A) Parliament and State Legislature.
26. Who can request the Comptroller and Auditor-General (CAG) to audit the
accounts of certain authorities or bodies not covered by any specific law?
A) The President of India
B) The Prime Minister of India
C) The Governor of a State or the Administrator of a Union territory having a
Legislative Assembly
D) The concerned body or authority itself
Solution: C) The Governor of a State or the Administrator of a Union territory

having a Legislative Assembly.
27. Who is responsible for appointing the Chairman of the Public Accounts
Committee (P.A.C.) in India?
A) President of India
B) Prime Minister of India
C) Speaker of Lok Sabha
D) Comptroller and Auditor General of India
Solution: C) Speaker of Lok Sabha

28. What is the main function of the Public Accounts Committee (P.A.C.) in
India?
A) Enacting laws related to public finance
B) Auditing government accounts
C) Investigating corruption cases in the government
D) Ensuring parliamentary control over government expenditure
Solution: D) Ensuring parliamentary control over government expenditure
29. When was the Public Accounts Committee first established in India?
A) 1947
B) 1950
C) 1967
D) 1921
Solution: D) 1921
30. How many members are there in the Public Accounts Committee (P.A.C.) in
India?
A) 22
B) 15
C) 7
D) 30
Solution: A) 22
31. How are the members of the Public Accounts Committee (P.A.C.) elected?
A) Appointed by the President of India
B) Nominated by the Prime Minister
C) Elected by Lok Sabha and Rajya Sabha
D) Selected by the Comptroller and Auditor General of India

Solution: C) Elected by Lok Sabha and Rajya Sabha
32. Who is eligible to be the Chairman of the Public Accounts Committee (P.A.C.)
in India?
A) Member of the ruling party
B) Minister in the government
C) Member of the opposition party
D) Comptroller and Auditor General of India
Solution: C) Member of the opposition party
33. What is the term of office for the members of the Public Accounts Committee
(P.A.C.)?
A) 2 years
B) 3 years
C) 5 years
D) 1 year
Solution: D) 1 year
34. Which house of Parliament has a higher representation in the Public Accounts
Committee (P.A.C.)?
A) Lok Sabha
B) Rajya Sabha
C) Both have equal representation
Solution: A) Lok Sabha

35. What is the primary purpose of the Public Accounts Committee (P.A.C.) in
India?
A) Auditing government accounts
B) Investigating financial irregularities
C) Ensuring accountability and transparency in government expenditure
D) All of the above
Solution: D) All of the above
36. Can a Minister be a member of the Public Accounts Committee (P.A.C.)?

A) Yes, if appointed by the Prime Minister
B) No, a Minister is not eligible to be a member
C) Yes, if approved by the President of India
D) Only if the Speaker of Lok Sabha allows it
Solution: B) No, a Minister is not eligible to be a member
37. What is the chief function of the Public Accounts Committee (P.A.C.) in
relation to the Comptroller and Auditor General (C&AG) report?
A) Preparing the C&AG report
B) Auditing the C&AG report
C) Examining the C&AG report
D) Approving the C&AG report
Solution: C) Examining the C&AG report
38. Which of the following is NOT a role of the Public Accounts Committee
(P.A.C.) regarding government expenditures?
A) Ensuring parliamentary authorization for expenditures
B) Monitoring unauthorized expenditures
C) Reviewing financial policies of the government
D) Identifying excessive expenditures

Solution: C) Reviewing financial policies of the government
39. What additional responsibility has been assigned to the Public Accounts
Committee (P.A.C.) regarding audit reports?
A) Scrutinizing audit reports of public corporations
B) Conducting independent audits of government accounts
C) Assisting the Comptroller and Auditor General (C&AG) in auditing
D) Reviewing the performance of the C&AG
Solution: A) Scrutinizing audit reports of public corporations
40. Under the provisions of the Companies Act, 2013, who appoints the statutory
auditor for a government company?
A) Comptroller and Auditor General of India (C&AG)
B) Central Government
C) Statutory Auditors themselves
D) Public Accounts Committee (P.A.C.)
Solution: B) Central Government
41. What is the role of the Comptroller and Auditor General of India (C&AG)
regarding the audit of Government companies?
A) Conducting primary audit of Government company accounts
B) Appointing statutory auditors for Government companies
C) Conducting supplementary or test audit of Government company accounts
D) Issuing directions to the Public Accounts Committee (P.A.C.) regarding audit
procedures
Solution: C) Conducting supplementary or test audit of Government company

accounts

42. According to the Companies Act, 2013, what authority does the Comptroller
and Auditor General of India (C&AG) have over the statutory auditors of
Government companies?
A) Power to dismiss the statutory auditors
B) Power to appoint additional statutory auditors
C) Power to issue directions on the audit process
D) Power to review and approve audit reports
Solution: C) Power to issue directions on the audit process
43. What is the primary purpose of the Government Accounting Standards Advisory
Board (GASAB) in India?
A) Enforcing accounting rules for private companies
B) Establishing and improving standards of government accounting and financial
reporting
C) Conducting audits of government agencies
D) Advising on tax regulations for businesses
Solution: B) Establishing and improving standards of government accounting and

financial reporting
44. Who is the Chairperson of the Government Accounting Standards Advisory

Board (GASAB)?
A) Comptroller and Auditor General of India (C&AG)
B) Principal Secretary (Finance) of a state
C) President of the Institute of Chartered Accountants of India (ICAI)
D) Deputy Comptroller and Auditor General (Government Accounts)
Solution: D) Deputy Comptroller and Auditor General (Government Accounts)

45. What is the role of the Member Secretary in the Government Accounting
Standards Advisory Board (GASAB)?
A) Chairing the board meetings
B) Providing financial advice to government agencies
C) Representing the Ministry of Finance
D) Assisting in the administration and coordination of the board's activities
Solution: D) Assisting in the administration and coordination of the board's activities
46. What is the primary responsibility of the Government Accounting Standards

Advisory Board (GASAB) in India?
A) Conducting audits of government agencies
B) Enhancing accountability mechanisms
C) Formulating tax regulations for businesses
D) Developing financial reports for private companies
Solution: B) Enhancing accountability mechanisms
47. Which of the following is a responsibility of GASAB regarding the Indian

Government Accounting Standards (IGAS)?
A) Formulating and improving standards of government accounting and financial
reporting
B) Auditing financial reports of government agencies
C) Providing guidance on tax implementation
D) Setting accounting standards for private companies
Solution: A) Formulating and improving standards of government accounting and

financial reporting

48. What type of standards has GASAB developed to address the issues related to
the cash system of accounting in the government?
A) Indian Financial Reporting Standards (IFRS)
B) Indian Government Accounting Standards (IGAS)
C) International Financial Reporting Standards (IFRS)
D) Government Auditing Standards (GAS)
Solution: B) Indian Government Accounting Standards (IGAS)
49. Which entities can provide guarantees for repayment of borrowings?

A) Union Government only
B) State Governments only
C) Union Government and State Governments
D) Local bodies and financial institutions
Solution: C) Union Government and State Governments
50. What types of payments can be guaranteed by the Union Government?

A) Repayment of share capital only
B) Payment of interest on borrowings only
C) Payment of minimum annual dividend only
D) All of the above
51. Guarantees given by the Union Government to the Reserve Bank of India and
other banks are primarily for:
A) Repayment of principal and payment of interest
B) Financing seasonal agricultural operations
C) Providing working capital for companies and corporations
D) Cash credit facility

Solution: A) Repayment of principal and payment of interest
52. Guarantees given by the Union Government to international financial

institutions and foreign lending agencies are for:
A) Repayment of principal and payment of interest
B) Cash credit facility
C) Financing seasonal agricultural operations
D) Providing working capital for companies and corporations
Answer: A) Repayment of principal and payment of interest
53. What is the objective of the disclosure norms for guarantees given by the
governments?
A) To ensure uniform and complete disclosure of guarantees in financial
statements
B) To reduce the magnitude of government borrowings
C) To provide budgetary support to beneficiary entities
D) To eliminate contingent liabilities of the governments
Solution: A) To ensure uniform and complete disclosure of guarantees in financial

statements
54. Which of the following best describes grants-in-aid?

A) Loans provided by one government to another government
B) Donations or contributions made by one government to another government
or institution
C) Payments made by individuals to support government initiatives
D) Payments made by governments to private individuals for personal use
Solution: B) Donations or contributions made by one government to another

government or institution

55. According to the Indian Government Accounting Standard, when should grants-
in-aid in cash be recognized in the books of the grantee?
A) At the time of cash disbursements by the grantor
B) At the time of cash receipts by the grantee
C) At the time of creating capital assets by the grantee
D) At the end of the financial year
Solution: B) At the time of cash receipts by the grantee
56. Which level of government in India receives grants-in-aid from the Union
Government?
A) Panchayati Raj Institutions (PRIs)
B) Urban Local Bodies (ULBs)
C) State Governments
D) Central Ministries
Solution: C) State Governments
57. What is the purpose of disclosing details of grants-in-aid in the financial

statements of the grantor?
A) To determine the extent of grants-in-aid disbursed for capital asset creation
B) To highlight the operating expenses of the grantor
C) To assess the financial position of the grantee
D) To calculate the tax liability of the grantor
Solution: A) To determine the extent of grants-in-aid disbursed for capital asset

creation

58. When does the Indian Government Accounting Standard for grants-in-aid
become effective?
A) Financial year 2010-2011
B) Financial year 2011-2012
C) Financial year 2012-2013
D) Financial year 2013-2014
Solution: B) Financial year 2011-2012
59. Loans and advances made by the government are recognized as assets in the
financial statements from which date?
A) The date of sanction
B) The date of loan agreement
C) The date of actual disbursement
D) The end of the financial year
Solution: C) The date of actual disbursement
60. What is the basis for the measurement and valuation of loans and advances
made by the government?
A) Historical cost
B) Fair value
C) Present value
D) Market value
Solution: A) Historical cost

61. What is the purpose of the additional column in the financial statements that
reflects the amount of interest in arrears?
A) To adjust the carrying amount of loans and advances
B) To calculate the interest income of the government
C) To disclose the amount of overdue interest payments
D) To reflect the fair value of the loans and advances
Solution: C) To disclose the amount of overdue interest payments
62.Which type of loans made by the government are categorized as "charged

loans"?
A) Loans provided to government servants
B) Loans disbursed for non-developmental purposes
C) Loans provided to state governments by the union government D) Loans
disbursed to foreign governments
Solution: C) Loans provided to state governments by the union government
63. When does the Indian Government Accounting Standard for loans and advances
become effective?
Solution: B) Financial year 2011-2012

64. Which currency is considered the reporting currency for the financial
statements of the Indian Government?
A) US Dollar
B) Euro
C) Indian Rupee
D) British Pound
Solution: C) Indian Rupee
65. When recording foreign currency transactions, which exchange rate should be
applied?
A) Exchange rate at the date of transaction
B) Average exchange rate for the accounting period
C) Exchange rate at the end of the financial year
D) Exchange rate at the date of conversion
Solution: A) Exchange rate at the date of transaction
66. How should losses or gains by exchange rate variations in foreign currency
transactions be recognized?
A) As revenue losses or gains
B) As capital losses or gains
C) As deferred losses or gains
D) As unrealized losses or gains
Solution: A) As revenue losses or gains

67. Which disclosure is required for foreign currency loans in the financial
statements?
A) Exchange rate at the date of repayment
B) Historical cost and closing rate basis
C) Current market value of the loans
D) Interest paid on the loans in foreign currency
Solution: B) Historical cost and closing rate basis
68. When does the Indian Government Accounting Standard for foreign currency
transactions and exchange rate variations become effective?
Solution: C) Financial year 2011-2012
69. Which of the following does the IGAS cover?

A) Investments in loan capital
B) Investments in equity shares only
C) Investments in debt instruments
D) Both investments in equity shares and debt instruments
Solution: B) Investments in equity shares only
70. When should an investment in equity be recognized by the government?

A) On the date of acquisition of equity shares
B) On the date of conversion of loans into equity
C) On the date of declaration of dividends by the investee entity
D) On the last day of the financial year

Solution: A) On the date of acquisition of equity shares
71. What is the method of initial measurement for government investments in

equity?
A) Market value on the last day of the financial year
B) Historical cost of the investment
C) Net present value of future cash flows
D) Fair value at the date of acquisition
Solution: B) Historical cost of the investment
72. When should the market value of investments be calculated for financial
reporting purposes?
A) On the date of acquisition of equity shares
B) On the last day of the financial year
C) On the date of declaration of dividends by the investee entity
D) On the date of conversion of loans into equity
Solution: B) On the last day of the financial year
73. What information should be disclosed in the financial statements regarding

government investments in equity?
A) The amount of investments at the beginning and end of the accounting period
B) Detailed statement of investments made by the government entity-wise
C) Summary of investments made by the government investee group-wise
D) All of the above

74. Which objective does the IGAS aim to achieve?
A) Determining the borrowing limits for governments
B) Ensuring transparency and disclosure in financial statements
C) Regulating the interest rates on public debt
D) Controlling the external debt of governments
Solution: B) Ensuring transparency and disclosure in financial statements
75. What does the term "other obligations" refer to in the IGAS?
A) Guarantees and other contingent liabilities
B) Non-binding assurances
C) Receipt and payment transactions in the public account
D) Changes in the rate of exchange for external debt
Solution: C) Receipt and payment transactions in the public account
76. How should public debt and other obligations be measured and reported?
A) Market value at the end of the accounting period
B) Net present value of future cash flows
C) Face value of the debt and obligations
D) Fair value based on current market conditions
Solution: C) Face value of the debt and obligations
77. What details should be disclosed in the financial statements regarding public
debt and other obligations?
A) Opening balance, additions, discharges, and closing balance in rupee terms
B) Interest paid and received by the government
C) External debt classification and outstanding in different currencies
D) All of the above

78. What is the primary responsibility of the Controller General of Accounts
(CGA)?
A) Maintaining line item wise accounts of all government transactions
B) Reviewing and analysing monthly accounts of the government
C) Providing advice on accounting procedures for new government schemes
D) Consolidating monthly accounts of individual ministries
Solution: B) Reviewing and analysing monthly accounts of the government
79. Which software package is used by the CGA and Principal Accounts Offices to
consolidate government accounts?
A) GAINS
B) CONTACT
C) IMPROVE
D) All of the above
Solution: D) All of the above (GAINS, CONTACT, IMPROVE)
80. What role does Information Technology play in government accounting in India?
A) Automating various processes at different levels of operations
B) Providing policy formulation support to the CGA
C) Assisting in the maintenance of line item wise accounts
D) Enabling real-time financial reporting for government transactions
Solution: A) Automating various processes at different levels of operations
81. Under which fund are revenues received by the government through taxes and
non-tax revenues credited?
A) Consolidated Fund of India
B) Public Account of India
C) Contingency Fund of India

Solution: A) Consolidated Fund of India
82. Which fund records transactions related to debt, deposits, advances,

remittance, and suspense?
Solution: B) Public Account of India
83. Which fund is set up by the Government of India to meet unforeseen

expenditures and acts as an imprest account?
Solution: C) Contingency Fund of India
84. Which IGFRS standard deals with the presentation of financial statements for
government entities?
A) IGFRS 1
B) IGFRS 2
C) IGFRS 3
D) IGFRS 4
Solution: A) IGFRS 1: Presentation of Financial Statements

85. Which IGFRS standard provides guidance on the accounting treatment for
property, plant, and equipment?
A) IGFRS 1
B) IGFRS 2
C) IGFRS 3
D) IGFRS 4
Solution: B) IGFRS 2: Property, Plant & Equipment
86. Which IGFRS standard focuses on the recognition and measurement of revenue
from exchange transactions by government entities?
A) IGFRS 1
B) IGFRS 2
C) IGFRS 3
D) IGFRS 4
Solution: C) IGFRS 3: Revenue from Government Exchange Transactions
87. Which IGFRS standard provides guidance on the accounting treatment for
inventories?
A) IGFRS 1
B) IGFRS 2
C) IGFRS 3
D) IGFRS 4
Solution: D) IGFRS 4: Inventories

88. Which IGFRS standard focuses on the disclosure requirements for contingent
liabilities and contingent assets?
A) IGFRS 1
B) IGFRS 2
C) IGFRS 3
D) IGFRS 5
Solution: D) IGFRS 5: Contingent Liabilities and Contingent Assets

Recent Developments in Financial Reporting
1. Which financial reporting framework is commonly used for preparing financial

statements of companies listed on the stock exchange?
A) GAAP
B) IFRS
C) Sustainability Reporting
D) Human Resource Reporting
Solution: B) IFRS
2. Which reporting format focuses on the social, environmental, and economic

impact of a company's activities?
A) CSR Reporting
B) Value Added Statement
C) Quarterly Earnings Call Management
D) XBRL Reporting
Solution: A) CSR Reporting
3. Which of the following is NOT one of the dimensions measured in Quadruple

Bottom Line (QBL) reporting?
A) Social
B) Environmental
C) Economic/Financial
D) Technological
Solution: D) Technological

4. What is the purpose of Quadruple Bottom Line (QBL) reporting?
A) To measure only the financial performance of an organization
B) To measure the social and environmental impact of an organization's activities
C) To assess the technological advancements of an organization
D) To analyse the political influence of an organization
Solution: B) To measure the social and environmental impact of an organization's

activities
5. What are the three Ps in the concept of Quadruple Bottom Line (QBL)
reporting?
A) Profit, Productivity, Performance
B) People, Planet, Purpose
C) Planning, Production, Profitability
D) Power, Politics, Partnership
Solution: B) People, Planet, Purpose
6. Quadruple Bottom Line (QBL) reporting includes the measurement and reporting
of which of the following dimensions?
A) Financial and technological performance
B) Social, environmental, and spiritual performance
C) Economic, political, and cultural performance
D) Legal, ethical, and market performance
Solution: B) Social, environmental, and spiritual performance
7. Which of the following is NOT a potential benefit of implementing Quadruple

Bottom Line (QBL) reporting?
A) Enhanced reputation and brand
B) Increased scope for innovation
C) Reduced risk profile
D) Maximization of financial profits

Solution: D) Maximization of financial profits
8. What role does Quadruple Bottom Line (QBL) reporting play in stakeholder
relationships?
A) It aligns stakeholder needs with management focus.
B) It increases financial profits for stakeholders.
C) It establishes a competitive market position.
D) It reduces the need for stakeholder dialogue.
Solution: A) It aligns stakeholder needs with management focus.
9. Which of the following is NOT a key challenge for the implementation of QBL
reporting framework?
A) Awareness of relevant issues associated with QBL reporting
B) Understanding stakeholder requirements
C) Aligning QBL reporting with objectives and risks
D) Maximizing financial profits
Solution: D) Maximizing financial profits
10. Which of the following best describes sustainability reporting?

A) Reporting on financial performance only
B) Reporting on economic, social, and environmental impacts
C) Reporting on environmental impacts only
D) Reporting on social impacts only
Solution: B) Reporting on economic, social, and environmental impacts

11. What does the term "materiality" mean in the context of sustainability
reporting?
A) Reporting on all possible impacts, regardless of their significance
B) Reporting on impacts that are important for stakeholders' decision-making
C) Reporting on impacts that have the greatest financial implications
D) Reporting on impacts that have the greatest environmental implications
Solution: B) Reporting on impacts that are important for stakeholders' decision-

making
12. Which organization is widely recognized for providing guidance and standards
for sustainability reporting?
A) United Nations Environment Programme (UNEP)
B) World Economic Forum (WEF)
C) International Monetary Fund (IMF)
D) Global Reporting Initiative (GRI)
Solution: D) Global Reporting Initiative (GRI)
13. What are the three pillars of sustainability often referred to as?
A) Planet - Prosperity - Progress
B) People - Planet - Profit
C) Power - Pollution - Profit
D) Progress - Prosperity - Planet
Solution: B) People - Planet - Profit

14. What is the goal of sustainable development?
A) To meet the needs of present generations without compromising the needs of
future generations
B) To maximize economic growth at all costs
C) To prioritize environmental protection over social and economic factors
D) To achieve zero carbon emissions globally
Solution: A) To meet the needs of present generations without compromising the

needs of future generations
15. Which of the following is an internal benefit of sustainability reporting?

A) Mitigating negative environmental impacts
B) Improving reputation and brand loyalty
C) Streamlining processes and reducing costs
D) Enhancing perception of an organization's value
Solution: C) Streamlining processes and reducing costs
16. Which of the following is an external benefit of sustainability reporting?

A) Increased understanding of risks and opportunities
B) Enhanced perception of an organization's value
C) Benchmarking and assessing sustainability performance
D) Improving the link between financial and non-financial performance
Solution: B) Enhanced perception of an organization's value

17. Which government agency in India introduced the 'National Voluntary
Guidelines on Social, Environmental, and Economic Responsibilities of
Business'?
A) Ministry of Finance
B) Ministry of Corporate Affairs
C) Securities and Exchange Board of India (SEBI)
D) Reserve Bank of India (RBI)
Solution: B) Ministry of Corporate Affairs
18. Which regulatory body in India introduced the requirement for listed entities
to include a Business Responsibility Report (BRR) in their annual reports?
A) Ministry of Corporate Affairs
B) Securities and Exchange Board of India (SEBI)
C) Reserve Bank of India (RBI)
D) National Stock Exchange (NSE)
Solution: B) Securities and Exchange Board of India (SEBI)
19. Initially, which companies were required to include the Business Responsibility
Report (BRR) in their annual reports?
A) Top 50 listed entities based on market capitalization
B) Top 100 listed entities based on market capitalization
C) All listed entities irrespective of market capitalization
D) Companies registered with the Ministry of Corporate Affairs
Solution: B) Top 100 listed entities based on market capitalization
20. What does the acronym "CSR" stand for?

A) Corporate Sustainability and Responsibility
B) Corporate Social Responsibility
C) Corporate Strategy and Responsibility
D) Corporate Stakeholder Relations

Solution: B) Corporate Social Responsibility
21. How is the total spending on Corporate Social Responsibility (CSR) calculated?
A) Total revenue multiplied by the CSR percentage
B) Total profit before taxes multiplied by the CSR percentage
C) Total profit after taxes multiplied by the CSR percentage
D) Total assets divided by the CSR percentage
Solution: C) Total profit after taxes multiplied by the CSR percentage
22. Does the company's financial report include details of its subsidiary companies?
A) Yes, always
B) No, never
C) Only if the subsidiary companies are publicly listed
D) Only if the subsidiary companies participate in the BR initiatives
Solution: D) Only if the subsidiary companies participate in the BR initiatives
23. Who is responsible for the implementation of the Business Responsibility (BR)
policy/policies?
A) Chief Financial Officer (CFO)
B) Human Resources Manager
C) Director/Directors responsible for BR
D) Board of Directors
Solution: C) Director/Directors responsible for BR

24. According to Principle 2, businesses should provide goods and services that
contribute to sustainability throughout their life cycle. This includes:
A) Ensuring optimal resource use only during the production phase
B) Raising consumer awareness of their rights through education and marketing
C) Disregarding safe usage and disposal of products and services
D) Ignoring the manufacturing processes and technologies required to produce the
product
Solution: B) Raising consumer awareness of their rights through education and

marketing
25. Principle 3 emphasizes promoting the well-being of all employees. Which of

the following is NOT a responsibility mentioned under this principle?
A) Providing equal opportunities during the course of employment
B) Ensuring a safe and hygienic workplace environment
C) Encouraging child labour and involuntary labour
D) Respecting the right to freedom of association and collective bargaining
Solution: C) Encouraging child labour and involuntary labour
26. According to Principle 4, businesses should respect the interests of all

stakeholders, especially those who are disadvantaged, vulnerable, and
marginalized. Which of the following is a responsibility mentioned under this
principle?
A) Ignoring the impact of policies, decisions, and operations on stakeholders
B) Avoiding engagement with stakeholders in underdeveloped areas
C) Resolving differences with stakeholders in a fair and equitable manner
D) Focusing solely on stakeholders in developed regions
Solution: C) Resolving differences with stakeholders in a fair and equitable manner

27. Principle 5 emphasizes respecting and promoting human rights. Which of the
following is NOT a responsibility mentioned under this principle?
A) Integrating respect for human rights in management systems
B) Recognizing and respecting the human rights of relevant stakeholders
C) Being complicit with human rights abuses by a third party
D) Promoting the awareness and realization of human rights across the value
chain
Solution: C) Being complicit with human rights abuses by a third party
28. Principle 1 highlights the importance of conducting and governing businesses

with ethics, transparency, and accountability. Which of the following is a
responsibility mentioned under this principle?
A) Engaging in practices that are abusive, corrupt, or anti-competition
B) Avoiding any communication about decisions impacting stakeholders
C) Reporting on the status of adoption of the Business Responsibility Guidelines
D) Disregarding the governance structures, procedures, and practices for ethical
conduct
Solution: C) Reporting on the status of adoption of the Business Responsibility

Guidelines
29. Principle 6 focuses on:

A) Ensuring customer satisfaction
B) Protecting the environment
C) Maximizing profits
D) Expanding the value chain
Solution: B) Protecting the environment

30. According to Principle 6, businesses should adopt cleaner production methods
and promote the use of:
A) Fossil fuels
B) Non-renewable energy sources
C) Energy-efficient and environmentally friendly technologies
D) Nuclear energy
Solution: C) Energy-efficient and environmentally friendly technologies
31. Principle 7 emphasizes that businesses engaged in influencing public and

regulatory policy should do so in a:
A) Secretive manner
B) Responsible manner
C) Aggressive manner
D) Biased manner
Solution: B) Responsible manner
32. Principle 8 states that businesses should support:

A) Profit maximization
B) Exploitative growth
C) Inclusive growth and equitable development
D) Economic inequality
Solution: C) Inclusive growth and equitable development
33. According to Principle 9, businesses should disclose information about their

products and services in order to:
A) Mislead consumers
B) Restrict competition
C) Educate consumers on responsible usage
D) Maximize sales

Solution: C) Educate consumers on responsible usage
34. According to the recent SEBI notification, listed companies will be required to
submit a new report on ESG parameters called:
A) Business Responsibility and Sustainability Report (BRSR)
B) Environmental Impact Assessment Report (EIAR)
C) Corporate Social Responsibility Report (CSRR)
D) Sustainability Performance Disclosure Report (SPDR)
Solution: A) Business Responsibility and Sustainability Report (BRSR)
35. From which financial year will the submission of the Business Responsibility
and Sustainability Report (BRSR) be mandatory for the top 1,000 listed
companies by market capitalization?
A) FY 2021-22
B) FY 2022-23
C) FY 2023-24
D) FY 2024-25
Solution: B) FY 2022-23
36. For which category of listed companies will the submission of the Business
Responsibility and Sustainability Report (BRSR) be voluntary from FY 2021-
22 onwards?
A) Top 100 listed companies by market capitalization
B) Top 500 listed companies by market capitalization
C) Top 1,000 listed companies by market capitalization
D) All listed companies irrespective of market capitalization
Solution: C) Top 1,000 listed companies by market capitalization

37. What is the primary purpose of an integrated report?
A) To disclose financial performance only
B) To highlight short-term financial goals
C) To explain how an organization creates, preserves, or erodes value over time
D) To focus on non-financial resources only
Solution: c) To explain how an organization creates, preserves, or erodes value over

time.
38. Integrated Reporting (IR) aims to provide a more holistic form of reporting by
considering:
A) Only financial capital
B) Only non-financial resources
C) Both financial and non-financial resources
D) Only short-term financial goals
Solution: C) Both financial and non-financial resources.
39. According to the Integrated Reporting Framework issued by IIRC, any

communication claiming to be an integrated report should:
A) Provide all the requirements identified in the <IR> Framework
B) Apply only the principles-based requirements
C) Apply only the requirements identified in bold italic type
D) Apply the requirements based on specific legal prohibitions
Solution: A) Provide all the requirements identified in the <IR> Framework.

40. What are the interrelated aspects of value mentioned in the context of the
Value Creation Process?
A) Value created only for the organization
B) Value created only for stakeholders and society
C) Value created for the organization and stakeholders/society
D) Value created for short-term financial goals
Solution: C) Value created for the organization and stakeholders/society.
41. Which of the following is NOT one of the identified capitals in the Integrated
Reporting Framework?
A) Financial capital
B) Intellectual capital
C) Technological capital
D) Social and relationship capital
Solution: C) Technological capital
42. In the Value Creation Process, what plays a central role in converting inputs
into outputs and creating value?
A) External environment
B) Purpose, mission, and vision
C) Business model
D) Risk and opportunities
Solution: C) Business model

43. Which of the following is NOT one of the guidelines advocated by IIRC for
preparing and presenting integrated reports?
A) Stakeholder relationships
B) Reliability and completeness
C) Profit maximization
D) Materiality
Solution: C) Profit maximization
44. Which regions have shown significant adoption of integrated reporting

according to the research project conducted by IFRS Foundation staff?
A) North America and South America
B) Asia Pacific, Middle East and Africa, and Europe
C) Europe and South America
D) Asia Pacific and North America
Solution: B) Asia Pacific, Middle East and Africa, and Europe
45. In India, which regulatory body issued a circular to introduce Integrated

Reporting on a voluntary basis for the top 500 companies?
A) Reserve Bank of India (RBI)
B) Ministry of Corporate Affairs (MCA)
D) Institute of Chartered Accountants of India (ICAI)
Solution: C) Securities and Exchange Board of India (SEBI)

46. What is the primary purpose of Corporate Social Responsibility (CSR)?
A) Maximizing profits for shareholders
B) Enhancing the company's brand perception
C) Complying with legal regulations
D) Improving employee productivity
Solution: B) Enhancing the company's brand perception
47. Which legislative framework in India governs Corporate Social Responsibility

(CSR)?
A) Companies Act, 1961
B) Securities and Exchange Board of India (SEBI) guidelines
C) Indian Contract Act, 1872
D) Companies Act, 2013
Solution: D) Companies Act, 2013
48. What are the criteria for a company to come under the ambit of CSR regulation
in India?
A) Net worth of at least INR 500 crore
B) Turnover of at least INR 1,000 crore
C) Net profit of at least INR 5 crore
D) All of the above
49. What is the minimum percentage of average net profits that an eligible
company needs to spend on CSR activities?
A) 1% of average net profits
B) 2% of average net profits
C) 3% of average net profits
D) 5% of average net profits

Solution: B) 2% of average net profits
50. How can a company treat the amount spent in excess of the CSR requirement?
A) It can carry forward the excess amount for the next financial year
B) It can distribute the excess amount as dividends to shareholders
C) It can invest the excess amount in the stock market
D) It can set off the excess amount against the CSR requirement for the next
three financial years
Solution: D) It can set off the excess amount against the CSR requirement for
the next three financial years
51. What should a company do with the unspent CSR amount from an ongoing
project?
A) Transfer it to the Unspent Corporate Social Responsibility Account
B) Distribute it as bonuses to employees
C) Invest it in a separate business venture
D) Keep it as a reserve for future CSR activities
Solution: A) Transfer it to the Unspent Corporate Social Responsibility Account
52. How should the amount of CSR expenditure be disclosed in the financial
statements?
A) By including it as a separate line item in the Statement of Profit and Loss
B) By disclosing it in the Notes to the financial statements
C) By including it in the Statement of Financial Position
D) By disclosing it in the Management Discussion and Analysis section
Solution: B) By disclosing it in the Notes to the financial statements

53. What should a company do with the unspent CSR expenditure?
A) Recognize it as a provision for liability in the financial statements
B) Carry it forward to the next financial year as an asset
C) Recognize it as an expense in the financial statements
D) Invest it in a separate CSR fund
Solution: A) Recognize it as a provision for liability in the financial statements
54. What information should be included in the company's annual CSR report?
A) Details of the company's CSR policy and projects, composition of the CSR
Committee, and average net profit
B) Details of the company's financial performance, including revenue and expenses
C) Details of the company's marketing and advertising activities
D) Details of the company's research and development initiatives
Solution: A) Details of the company's CSR policy and projects, composition of the
CSR Committee, and average net profit
55. ESG reporting refers to the disclosure of data covering the company's
operations in which areas?
A) Economic, Social, and Governance
B) Environmental, Sustainable, and Growth
C) Economic, Social, and Growth
D) Environmental, Social, and Governance
Solution: D) Environmental, Social, and Governance
56. Which of the following statements is true about ESG reporting?

A) It is a voluntary practice for companies.
B) It focuses only on financial performance.
C) It is not important for investors.
D) It covers environmental, social, and corporate governance aspects.

Solution: D) It covers environmental, social, and corporate governance aspects.
57. Why is ESG reporting important?

A) It helps companies hide their environmental and social practices.
B) It is required by law for all companies.
C) It enables investors to assess material risks and growth opportunities.
D) It is solely focused on economic factors.
Solution: C) It enables investors to assess material risks and growth opportunities.
58. Which of the following is NOT a criterion considered in ESG reporting?

A) Energy efficiency
B) Employee engagement
C) Profit margin
D) Board composition
Solution: C) Profit margin
59. ESG reporting analyses how a company manages relationships with its
stakeholders. Which of the following is NOT a stakeholder?
A) Employees
B) Customers
C) Shareholders
D) Competitors
Solution: D) Competitors

60. Which type of HR report provides information on employee headcount, turnover
rates, diversity, and employee satisfaction percentage?
A) Recruitment reports
B) Performance management reports
C) Employee information reports
D) Compensation reports
Solution: C) Employee information reports
61. Which metric is commonly tracked in recruitment reports to measure the

effectiveness of candidate sourcing channels?
A) Employee turnover rates
B) Average employee tenure
C) Number of candidates evaluated
D) Peer reviews
Solution: C) Number of candidates evaluated
62. Performance management reports are useful for assessing employees' progress
towards meeting their:
A) Financial targets
B) Recruitment goals
C) Personal development objectives
D) Compensation expectations
Solution: C) Personal development objectives

63. Which type of HR report focuses on salary, appraisal, paid time off, and
overtime compensation?
A) Employee information reports
B) Recruitment reports
C) Performance management reports
D) Compensation reports
Solution: D) Compensation reports
64. Equal employment opportunity reports aim to ensure that employment in an

organization is not biased towards:
A) Senior employees
B) Specific job roles
C) Certain age groups
D) Seasonal workers
Solution: C) Certain age groups
65. Value added is a measurement that focuses on:

A) Profit generated by an enterprise
B) Shareholder wealth creation
C) Net value or wealth created by an enterprise
D) Capital and labour distinction in financial statements
Solution: C) Net value or wealth created by an enterprise
66. Which financial statement shows how much value has been created and
distributed by an enterprise?
A) Income statement
B) Balance sheet
C) Cash flow statement
D) Value Added statement

Solution: D) Value Added statement
67. The creation or generation of value added in a Value Added statement is

calculated as:
A) Turnover plus income from services minus cost of bought-in material
B) Gross profit minus operating expenses
C) Net profit before tax
D) Gross sales minus discounts and commissions
Solution: A) Turnover plus income from services minus cost of bought-in material
68. In the Value Added statement, the application of value added includes sharing
it among:
A) Shareholders, lenders, and government
B) Employees, government, and providers of capital
C) Customers, suppliers, and shareholders
D) Directors, auditors, and creditors
Solution: B) Employees, government, and providers of capital
69. Value added aligns corporate financial reporting with:

A) Stakeholder needs
B) Profit maximization
C) Shareholder wealth creation
D) Cost reduction strategies
Solution: A) Stakeholder needs

70. Which of the following is a use of Value Added reporting?
A) Calculating net profit
B) Evaluating employee satisfaction
C) Assessing resource allocation decisions
D) Tracking shareholder dividends
Solution: C) Assessing resource allocation decisions
71. Value added per employee is a productivity measure that helps evaluate:
A) Profit margin
B) Employee satisfaction
C) Efficiency of resource utilization
D) Market share
Solution: C) Efficiency of resource utilization
72. Which of the following statements is true about Economic Value Added (EVA)?
A) It measures a company's market value relative to its invested capital.
B) It is a wealth metric that reflects a company's future performance.
C) It represents the difference between net after-tax operating profit and the
product of invested capital and the cost of capital.
D) It is calculated by subtracting market value from the capital contributed by
investors.
Solution: C) It represents the difference between net after-tax operating profit

and the product of invested capital and the cost of capital.

73. Economic Value Added (EVA) is calculated by:
A) Subtracting market value from the capital contributed by investors.
B) Multiplying net after-tax operating profit by the cost of capital.
C) Dividing net after-tax operating profit by the cost of capital.
D) Subtracting the product of invested capital and the cost of capital from net
after-tax operating profit.
Solution: D) Subtracting the product of invested capital and the cost of capital
from net
after-tax operating profit.
74. Market Value Added (MVA) measures:

A) The true economic profit generated by a company.
B) The difference between a company's market value and the capital
contributed by investors.
C) The ratio of net after-tax operating profit to invested capital.
D) The surplus value assigned to a company based on its past performance.
Solution: B) The difference between a company's market value and the capital
contributed by investors.
75. What is the purpose of XBRL?

A) To convert financial statements into PDF format
B) To standardize the communication of business and financial data
C) To replace financial reporting with XML language
D) To create encrypted digital reports for data security
Solution: B) To standardize the communication of business and financial data

76. What is the definition of XBRL?
A) A standardized language for electronic communication of business data
B) An international standard for digital reporting of financial information
C) A format used to convert paper-based reports into digital versions
D) A system for encrypting financial data for secure transmission
Solution: A) A standardized language for electronic communication of business

data
77. What is the role of taxonomy in XBRL?

A) It defines the specific tags used for individual data items and their attributes.
B) It determines the cost of implementing XBRL in a company.
C) It ensures data security in the XBRL reporting process.
D) It provides guidelines for converting PDF files into XBRL format.
Solution: A) It defines the specific tags used for individual data items and their
attributes.
78. Which of the following is true regarding XBRL?

A) XBRL is a set of accounting standards.
B) XBRL is a proprietary technology.
C) XBRL is a transaction protocol.
D) XBRL is a platform for standardized communication of business and financial
data.
Solution: D) XBRL is a platform for standardized communication of business and

financial data.

79. What is the purpose of taxonomy in XBRL?
A) To convert financial statements into XBRL format.
B) To define the specific tags used for reporting terms and their relationships.
C) To translate financial statements from one GAAP to another.
D) To create reusable definitions for accounting standards.
Solution: B) To define the specific tags used for reporting terms and their
relationships.
80. Which of the following is a benefit of XBRL reporting?

A) Increased manual data entry for data validation.
B) Reduced transparency of financial records for interested parties.
C) Interchangeability of information between different organizations.
D) Higher costs and longer processing time compared to traditional reporting
formats.
Solution: C) Interchangeability of information between different organizations.
81. Who are the significant users of XBRL?

A) Companies and accountants only
B) Investors and regulatory authorities only
C) Government agencies and tax authorities only
D) Companies, accountants, investors, regulatory authorities, government
agencies, tax authorities, and more.
Solution: D) Companies, accountants, investors, regulatory authorities, government

agencies, tax authorities, and more.

82. What is the role of regulatory authorities in XBRL?
A) They develop taxonomies for specific industries.
B) They provide financial statements to investors.
C) They monitor compliance of listed companies and securities.
D) They facilitate the exchange of business information across reporting chains.
Solution: C) They monitor compliance of listed companies and securities.
83. Which organization manages XBRL internationally?

A) Institute of Cost Accountants of India (ICAI)
B) Securities & Exchange Board of India (SEBI)
C) Ministry of Corporate Affairs (MCA)
D) XBRL International Inc. (XII)
Solution: D) XBRL International Inc. (XII)
84. Which regulatory agency in India mandated the submission of XBRL for annual
report and cost audit report filings?
A) Reserve Bank of India
B) Securities and Exchange Board of India
C) Ministry of Corporate Affairs
D) Institute of Cost Accountants of India
Solution: C) Ministry of Corporate Affairs
85. Which year did the Ministry of Corporate Affairs (MCA) make it mandatory
for certain class of companies to file their Financial Statements in XBRL
form?
A) 2010
B) 2011
C) 2012
D) 2013

Solution: B) 2011
86. Which companies were required to file their Financial Statements in XBRL
form from the year 2010-2011, according to the Companies (Filing of
Documents and Forms in Extensible Business Reporting Language) Rules, 2011?
A) All companies listed in India and their subsidiaries
B) All companies having a paid-up capital of Rs. 5 crore and above
C) All companies having turnover of Rs. 100 crore or above
D) All of the above
87. After the issuance of which act did the Central Government issue the
Companies (Filing of Documents and Forms in Extensible Business Reporting
Language) Rules, 2015?
A) Companies Act, 2010
B) Companies Act, 2011
C) Companies Act, 2012
D) Companies Act, 2013
Solution: D) Companies Act, 2013
88. Which class of companies is required to file their financial statements and
other documents in XBRL format, according to section 137 of the Companies
Act, 2013?
A) All companies listed with any Stock Exchange(s) in India and their Indian
subsidiaries
B) All companies having paid-up capital of Rs. 5 crore or above
C) All companies having turnover of Rs. 100 crore or above
D) All of the above

89. Which of the following companies is exempt from filing their financial
statements in XBRL format, as per the Companies (Filing of Documents and
Forms in Extensible Business Reporting Language) Rules, 2015?
A) Banking companies
B) Insurance companies
C) Power sector companies
D) All of the above
90. Which regulatory agency oversees the implementation of XBRL for reporting
by banks in India?
A) Ministry of Corporate Affairs (MCA)
B) Reserve Bank of India (RBI)
D) Bombay Stock Exchange (BSE)
Solution: B) Reserve Bank of India (RBI)
91. Which regulatory agency is in the process of setting up a SEBI Unified Platform
for Electronic Reporting and Dissemination (SUPER-D) based on XBRL
technology?
Solution: C) Securities and Exchange Board of India (SEBI)

92. Which stock exchange in India has implemented XBRL-based reporting for
corporate governance reports and shareholding patterns?
Solution: D) Bombay Stock Exchange (BSE)
93. Which class of companies is required to file cost audit reports and other
documents using the XBRL taxonomy specified in Annexure-III to the
Companies (Cost Records and Audit) Rules, 2014?
A) Banking companies
B) Insurance companies
C) Power sector companies
D) Companies required to furnish cost audit reports under Section 148(6) of
the Companies Act, 2013
Solution: D) Companies required to furnish cost audit reports under Section 148(6)
of the Companies Act, 2013
94. What is the purpose of an earnings call?

A) To announce a company's financial results
B) To conduct a press release
C) To discuss future business strategies
D) All of the above

95. Who are the typical participants in an earnings call?
A) Investors
B) Equity analysts
C) Business journalists
D) All of the above
96. What is the structure of an earnings call?

A) Safe Harbour Statement, Presentation of Financial Results, Q&A Session
B) Presentation of Financial Results, Safe Harbour Statement, Q&A Session
C) Q&A Session, Safe Harbour Statement, Presentation of Financial Results
D) Safe Harbour Statement, Q&A Session, Presentation of Financial Results
Solution: A) Safe Harbour Statement, Presentation of Financial Results, Q&A

Session
97. Who are the key executives typically present in an earnings call?
A) Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
B) Chief Marketing Officer (CMO) and Chief Operations Officer (COO)
C) Chief Technology Officer (CTO) and Chief Human Resources Officer (CHRO)
D) Chief Legal Officer (CLO) and Chief Information Officer (CIO)
Solution: A) Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
98. Why are earnings calls important for investors and equity analysts?
A) They provide valuable information for fundamental analysis
B) They help in updating earnings estimates
C) They assist in making investment decisions
D) All of the above


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Government Accounting in India

1. Government accounting is primarily concerned with:

Solution: C) Recording, classifying, and summarizing financial transactions of

2. Which of the following is NOT a characteristic of government accounting?

Solution: C) Focusing on personal financial management.

3. What is the purpose of government accounting?

Solution: B) To ensure accurate and transparent reporting of financial activities.

CMA Final – Corporate Financial Reporting (CFR) CA Bishnu Kedia

Solution: C) Use of the accrual accounting method.

5. What is the purpose of reporting the utilization of public funds in government

6. Why is auditing an important feature of government accounting?

Solution: A) To ensure proper governance and prevent misuse of public funds.

7. Which of the following is NOT an objective of government accounting?

Solution: D) Maximizing profits for the government.

Theory Topics – MCQ Questions CA Bishnu Kedia

Solution: B) Public funds.

9. Which of the following is not a principle of government accounting?

Solution: C) Accrual basis of accounting

10. Which part of government accounts includes the Consolidated Fund,

Solution: D) Consolidated Fund

11. Which of the following statements is true regarding government accounting?

CMA Final – Corporate Financial Reporting (CFR) CA Bishnu Kedia

12. What is the basis of government accounting?

Solution: A) Cash basis

Solution: C) Government-appointed auditors (Auditor General Office)

14. What is the main objective of commercial accounting?

Solution: B) Disclosing the financial position of the entity

Theory Topics – MCQ Questions CA Bishnu Kedia

Solution: B) Government-owned corporations

Solution: C) Parliamentary scrutiny of financial activities

CMA Final – Corporate Financial Reporting (CFR) CA Bishnu Kedia

Solution: D) Union Government, State Governments, and bodies substantially

Solution: B) More than ₹1 crore

Solution: C) Both government companies and corporations

Theory Topics – MCQ Questions CA Bishnu Kedia

Solution: B) The Governor of a State or the Administrator of a Union territory

Solution: C) If the Governor or Administrator deems it necessary in the public

CMA Final – Corporate Financial Reporting (CFR) CA Bishnu Kedia

Solution: A) Parliament and State Legislature.

Solution: C) The Governor of a State or the Administrator of a Union territory

Solution: C) Speaker of Lok Sabha

Theory Topics – MCQ Questions CA Bishnu Kedia

Solution: D) Ensuring parliamentary control over government expenditure

CMA Final – Corporate Financial Reporting (CFR) CA Bishnu Kedia

Solution: C) Member of the opposition party

Solution: A) Lok Sabha

Theory Topics – MCQ Questions CA Bishnu Kedia

Solution: D) All of the above

36. Can a Minister be a member of the Public Accounts Committee (P.A.C.)?

Solution: B) No, a Minister is not eligible to be a member

Solution: C) Examining the C&AG report

CMA Final – Corporate Financial Reporting (CFR) CA Bishnu Kedia

Solution: A) Scrutinizing audit reports of public corporations

Solution: B) Central Government

Solution: C) Conducting supplementary or test audit of Government company

Theory Topics – MCQ Questions CA Bishnu Kedia

Solution: C) Power to issue directions on the audit process

Solution: B) Establishing and improving standards of government accounting and

44. Who is the Chairperson of the Government Accounting Standards Advisory

Solution: D) Deputy Comptroller and Auditor General (Government Accounts)

CMA Final – Corporate Financial Reporting (CFR) CA Bishnu Kedia

Solution: D) Assisting in the administration and coordination of the board's activities

46. What is the primary responsibility of the Government Accounting Standards

Solution: B) Enhancing accountability mechanisms