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💦EXPENDITURE ACCOUNTS (100 MCQs)

(Includes conceptual + classification + practical accounting situations)

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1. Expenditure means:
   A) Income
   B) Spending of funds
   C) Profit
   D) Liability
   Answer: B
2. Government expenditure is classified into:
   A) Capital & Revenue
   B) Income & Expense
   C) Asset & Liability
   D) Debit & Credit
   Answer: A
3. Revenue expenditure is:
   A) Creates asset
   B) Day-to-day expenses
   C) Investment
   D) Loan
   Answer: B
4. Capital expenditure results in:
   A) Expense
   B) Asset creation
   C) Loss
   D) Liability
   Answer: B
5. Charged expenditure is:
   A) Voted by Parliament
   B) Not voted
   C) Optional
   D) Conditional
   Answer: B
6. Voted expenditure is:
   A) Charged
   B) Approved by Parliament
   C) Optional
   D) Audit
   Answer: B
7. Budget includes:
   A) Receipts only
   B) Expenditure only
   C) Both
   D) None
   Answer: C
8. Expenditure control ensures:
   A) Overspending
   B) Budget discipline
   C) Delay
   D) Bonus
   Answer: B
9. Appropriation means:
   A) Spending
   B) Authorization
   C) Payment
   D) Audit
   Answer: B
10. Excess expenditure requires:
    A) Audit
    B) Approval
    C) Bonus
    D) None
    Answer: B
11. Re-appropriation means:
    A) New budget
    B) Transfer within budget
    C) Payment
    D) Audit
    Answer: B
12. Expenditure is recorded in:
    A) Cash book
    B) Ledger
    C) Both
    D) None
    Answer: C
13. Debit represents:
    A) Income
    B) Expenditure
    C) Profit
    D) Liability
    Answer: B
14. Credit represents:
    A) Expenditure
    B) Income
    C) Loss
    D) Asset
    Answer: B
15. Financial year is:
    A) Jan–Dec
    B) Apr–Mar
    C) Jul–Jun
    D) Mar–Feb
    Answer: B
16. Expenditure sanction is given by:
    A) Employee
    B) Competent authority
    C) Audit
    D) Court
    Answer: B
17. Expenditure must be:
    A) Arbitrary
    B) Sanctioned
    C) Optional
    D) Conditional
    Answer: B
18. Budget head is:
    A) Classification
    B) Payment
    C) Audit
    D) None
    Answer: A
19. Expenditure is subject to:
    A) Audit
    B) Rules
    C) Both
    D) None
    Answer: C
20. Financial control ensures:
    A) Waste
    B) Efficiency
    C) Delay
    D) Bonus
    Answer: B

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21. Salary payment is:
    A) Capital
    B) Revenue
    C) Loan
    D) Asset
    Answer: B
22. Purchase of building is:
    A) Revenue
    B) Capital
    C) Expense
    D) Liability
    Answer: B
23. Repair of building is:
    A) Capital
    B) Revenue
    C) Asset
    D) Liability
    Answer: B
24. Purchase of machinery is:
    A) Revenue
    B) Capital
    C) Expense
    D) Liability
    Answer: B
25. Office electricity bill is:
    A) Capital
    B) Revenue
    C) Asset
    D) Liability
    Answer: B
26. Loan repayment is:
    A) Capital
    B) Revenue
    C) Asset
    D) Expense
    Answer: A
27. Interest payment is:
    A) Capital
    B) Revenue
    C) Asset
    D) Liability
    Answer: B
28. Construction of railway track is:
    A) Revenue
    B) Capital
    C) Expense
    D) Liability
    Answer: B
29. Maintenance of track is:
    A) Capital
    B) Revenue
    C) Asset
    D) Liability
    Answer: B
30. Purchase of furniture is:
    A) Revenue
    B) Capital
    C) Expense
    D) Liability
    Answer: B
31. Wages for daily work:
    A) Capital
    B) Revenue
    C) Asset
    D) Liability
    Answer: B
32. Depreciation is:
    A) Capital
    B) Revenue
    C) Asset
    D) Liability
    Answer: B
33. Investment in project is:
    A) Revenue
    B) Capital
    C) Expense
    D) Liability
    Answer: B
34. Audit objection relates to:
    A) Income
    B) Irregular expenditure
    C) Asset
    D) Liability
    Answer: B
35. Suspense account is used for:
    A) Final entry
    B) Temporary booking
    C) Income
    D) Liability
    Answer: B
36. Adjustment entry corrects:
    A) Error
    B) Income
    C) Asset
    D) Liability
    Answer: A
37. Payment without sanction is:
    A) Valid
    B) Irregular
    C) Capital
    D) Revenue
    Answer: B
38. Excess over budget is:
    A) Allowed
    B) Irregular
    C) Capital
    D) Revenue
    Answer: B
39. Booking under wrong head is:
    A) Correct
    B) Misclassification
    C) Asset
    D) Liability
    Answer: B
40. Advances adjusted under:
    A) Final account
    B) Suspense
    C) Asset
    D) Liability
    Answer: B
41. Expenditure booked on cash basis means:
    A) When incurred
    B) When paid
    C) When approved
    D) When audited
    Answer: B
42. Revenue receipt reduces:
    A) Expenditure
    B) Income
    C) Asset
    D) Liability
    Answer: A
43. Capital receipt creates:
    A) Liability
    B) Asset
    C) Expense
    D) Income
    Answer: A
44. Write-off is:
    A) Capital
    B) Revenue
    C) Loss
    D) Asset
    Answer: C
45. Stores purchase booked under:
    A) Capital
    B) Suspense/store account
    C) Revenue
    D) Liability
    Answer: B
46. Issue of stores charged to:
    A) Capital
    B) Revenue
    C) Expense head
    D) Liability
    Answer: C
47. Deposit works are:
    A) Govt expenditure
    B) Third-party funded
    C) Asset
    D) Liability
    Answer: B
48. Grant-in-aid is:
    A) Capital
    B) Revenue
    C) Loan
    D) Asset
    Answer: B
49. Subsidy is:
    A) Capital
    B) Revenue
    C) Asset
    D) Liability
    Answer: B
50. Refund of expenditure reduces:
    A) Income
    B) Expenditure
    C) Asset
    D) Liability
    Answer: B

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61. Expenditure control is exercised by:
    A) Drawing officer
    B) Accounts officer
    C) Both
    D) None
    Answer: C
62. Audit ensures:
    A) Compliance
    B) Accuracy
    C) Both
    D) None
    Answer: C
63. Internal control prevents:
    A) Efficiency
    B) Fraud
    C) Audit
    D) Delay
    Answer: B
64. Misclassification affects:
    A) Accounts
    B) Budget
    C) Both
    D) None
    Answer: C
65. Reconciliation ensures:
    A) Matching records
    B) Error
    C) Delay
    D) Bonus
    Answer: A
66. Expenditure audit checks:
    A) Legality
    B) Regularity
    C) Both
    D) None
    Answer: C
67. Budgetary control ensures:
    A) Overspending
    B) Discipline
    C) Delay
    D) Bonus
    Answer: B
68. Financial rules ensure:
    A) Compliance
    B) Control
    C) Both
    D) None
    Answer: C
69. Payment authority must ensure:
    A) Sanction
    B) Availability of funds
    C) Both
    D) None
    Answer: C
70. Expenditure must be:
    A) Necessary
    B) Authorized
    C) Reasonable
    D) All
    Answer: D
71. Audit objection raised for:
    A) Regular expenditure
    B) Irregularity
    C) Income
    D) Asset
    Answer: B
72. Expenditure booked wrongly leads to:
    A) Error
    B) Audit issue
    C) Both
    D) None
    Answer: C
73. Charged expenditure example:
    A) Salary
    B) Interest on debt
    C) Office expense
    D) Bonus
    Answer: B
74. Voted expenditure example:
    A) Interest
    B) Salary
    C) Court
    D) Audit
    Answer: B
75. Expenditure control ensures:
    A) Efficiency
    B) Economy
    C) Both
    D) None
    Answer: C
76. Financial propriety means:
    A) Waste
    B) Prudence
    C) Delay
    D) Bonus
    Answer: B
77. Expenditure should not be:
    A) Wasteful
    B) Necessary
    C) Approved
    D) Sanctioned
    Answer: A
78. Audit trail means:
    A) Record
    B) Evidence
    C) Both
    D) None
    Answer: C
79. Booking must follow:
    A) Rules
    B) Classification
    C) Both
    D) None
    Answer: C
80. Expenditure records must be:
    A) Accurate
    B) Updated
    C) Both
    D) None
    Answer: C
81. Budget variance shows:
    A) Difference
    B) Error
    C) Delay
    D) Bonus
    Answer: A
82. Expenditure is part of:
    A) Financial management
    B) HR
    C) Audit
    D) Law
    Answer: A
83. Control of expenditure ensures:
    A) Accountability
    B) Transparency
    C) Both
    D) None
    Answer: C
84. Financial discipline requires:
    A) Control
    B) Compliance
    C) Both
    D) None
    Answer: C
85. Expenditure is audited by:
    A) Audit
    B) Accounts
    C) Both
    D) None
    Answer: A
86. Booking errors corrected by:
    A) Adjustment
    B) Audit
    C) Authority
    D) All
    Answer: D
87. Expenditure classification ensures:
    A) Clarity
    B) Control
    C) Both
    D) None
    Answer: C
88. Budget head ensures:
    A) Proper booking
    B) Control
    C) Both
    D) None
    Answer: C
89. Expenditure system ensures:
    A) Efficiency
    B) Economy
    C) Effectiveness
    D) All
    Answer: D
90. Financial rules are:
    A) Mandatory
    B) Optional
    C) Flexible
    D) None
    Answer: A
91. Expenditure without sanction is:
    A) Valid
    B) Irregular
    C) Capital
    D) Revenue
    Answer: B
92. Audit ensures:
    A) Legality
    B) Regularity
    C) Both
    D) None
    Answer: C
93. Expenditure control is responsibility of:
    A) Authority
    B) Accounts
    C) Both
    D) None
    Answer: C
94. Financial propriety ensures:
    A) Economy
    B) Efficiency
    C) Both
    D) None
    Answer: C
95. Expenditure system ensures:
    A) Accountability
    B) Transparency
    C) Both
    D) None
    Answer: C
96. Booking must be:
    A) Correct
    B) Timely
    C) Both
    D) None
    Answer: C
97. Expenditure affects:
    A) Budget
    B) Accounts
    C) Both
    D) None
    Answer: C
98. Audit objection resolves through:
    A) Explanation
    B) Correction
    C) Both
    D) None
    Answer: C
99. Expenditure is core of:
    A) Finance
    B) Accounts
    C) Both
    D) None
    Answer: C
100. Expenditure management ensures:
     A) Control
     B) Efficiency
     C) Accountability
     D) All
     Answer: D