UGC NET Questions (Paper – 1)

Statements A, B, C and D summarise good financial governance. A is true as internal audits examine whether transactions follow rules. B is true because early detection of irregularities supports timely correction. C is true since audited statements are central to transparency. D is true because governing bodies oversee budgets and financial decisions. E and F are false because internal audits do not remove the need for statutory external audits and sound financial governance strongly affects institutional reputation and trust.

Option A:
Option A is correct because it includes the four true statements on internal review, early detection, transparent reporting and governance oversight, while excluding E and F, which deny external accountability and the importance of trust.

Option B:
Option B is incorrect because it adds E, claiming that external audits are unnecessary, contrary to statutory requirements.

Option C:
Option C is incorrect because it omits A, thus not explicitly stating the role of internal audits in checking compliance.

Option D:
Option D is incorrect because it includes F, which wrongly disconnects financial governance from credibility and stakeholder confidence.

Statements A, B and D are correct: public universities rely substantially on government grants, they may diversify resources through fees/projects/donations/endowments within norms, and diversification should align with institutional mission and priorities. Statements C, E and F are incorrect because public funding does not remove accountability, public universities can receive donations/endowments under rules, and external projects are not automatically incompatible with quality.

Option A:
Option A is correct because it includes all and only the true statements A, B and D while excluding C, E and F.

Option B:
Option B is incorrect because it includes C, which wrongly claims public funding removes the need for efficiency and transparency.

Option C:
Option C is incorrect because it omits A and thus ignores the major role of government grants in public university funding.

Option D:
Option D is incorrect because it includes C (false) and omits A (true), so it mixes wrong and incomplete statements.