Accountancy and Book Keeping MCQs

Accountancy and Statistics

Accountancy and Book Keeping MCQs

Practice the latest Accountancy MCQs with answers and detailed explanations. Explore chapter-wise multiple-choice questions covering important accounting concepts, bookkeeping, financial statements, journal entries, ledger, trial balance, depreciation, ratio analysis, partnership accounts, company accounts, and more. Perfect for Class 11 & 12, B.Com, CA Foundation, CUET, Banking, SSC, JKSSB, JKPSC and competitive exams.

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Practice Questions

Page 37 of 94
Question #721
The 'Prevention of Money Laundering Act' (PMLA) in India requires reporting of:
A. All cash transactions
B. GST filings
C. Suspicious transactions
D. Tax payments
Discuss
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Correct Answer: Option C

Explanation:
PMLA requires financial institutions to report suspicious transactions to the Financial Intelligence Unit.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #722
The 'Goods and Services Tax Network' (GSTN) is:
A. A government department
B. A tax tribunal
C. A bank
D. A not-for-profit non-government company providing IT infrastructure for GST
Discuss
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Correct Answer: Option D

Explanation:
GSTN is a special purpose vehicle that provides the IT backbone for GST registration, return filing, etc.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #723
The 'E-Way Bill' under GST is required for movement of goods of value exceeding:
A. ₹50,000
B. ₹5,000
C. ₹10,000
D. ₹1,00,000
Discuss
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Correct Answer: Option A

Explanation:
E-way bill is mandatory for inter-state and intra-state movement of goods if consignment value exceeds ₹50,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #724
The 'Reverse Charge Mechanism' under GST means:
A. Tax is paid by the supplier
B. Tax is deferred
C. Tax is exempt
D. Tax is paid by the recipient of supply
Discuss
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Correct Answer: Option D

Explanation:
Under reverse charge, the liability to pay GST shifts from the supplier to the recipient.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #725
The 'Composition Scheme' under GST is optional for:
A. Importers
B. All taxpayers
C. Large taxpayers
D. Small taxpayers with turnover up to specified limit
Discuss
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Correct Answer: Option D

Explanation:
Small taxpayers can opt for composition levy to reduce compliance burden.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #726
The 'Annual Return' under GST for a regular dealer is:
A. GSTR-1
B. GSTR-4
C. GSTR-9
D. GSTR-3B
Discuss
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Correct Answer: Option C

Explanation:
GSTR-9 is the annual return for normal taxpayers.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #727
The 'Input Service Distributor' (ISD) is a concept under GST to:
A. File returns
B. Distribute input tax credit of services to branches
C. Distribute goods
D. Pay tax on behalf of others
Discuss
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Correct Answer: Option B

Explanation:
ISD distributes credit of input services to its units.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #728
The 'Place of Supply' rules under GST determine:
A. The value of supply
B. The tax rate
C. Whether supply is intra-state or inter-state
D. Exemption
Discuss
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Correct Answer: Option C

Explanation:
Place of supply determines whether IGST or CGST+SGST applies.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #729
The 'Time of Supply' for goods under GST is earliest of:
A. Date of contract
B. Date of order
C. Date of delivery only
D. Date of invoice or date of payment
Discuss
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Correct Answer: Option D

Explanation:
Time of supply is the earlier of invoice date or receipt of payment.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #730
The 'Value of Supply' under GST includes:
A. Only cost
B. Price plus any taxes, duties, fees, etc., except GST
C. Only the price charged
D. Only GST
Discuss
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Correct Answer: Option B

Explanation:
Value includes all amounts charged, including incidental expenses, but excluding CGST/SGST/IGST.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #731
The 'HSN Code' under GST is used for:
A. Identifying the buyer
B. Tax rate determination
C. Identifying the type of goods
D. Both A and C
Discuss
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Correct Answer: Option D

Explanation:
HSN (Harmonized System of Nomenclature) code classifies goods for tax rates.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #732
The 'GST Compensation Cess' is levied on:
A. Luxury and sin goods
B. Essential goods
C. All goods and services
D. Exports
Discuss
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Correct Answer: Option A

Explanation:
Compensation cess is levied on specified luxury and demerit goods to compensate states for revenue loss.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #733
The 'Zero-Rated Supply' under GST includes:
A. Nil-rated supplies
B. All supplies
C. Exempt supplies
D. Exports and supplies to SEZ
Discuss
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Correct Answer: Option D

Explanation:
Zero-rated supplies attract 0% GST, and input tax credit is available.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #734
The 'Exempt Supply' under GST means:
A. Supply with 0% tax and ITC available
B. Supply not subject to GST
C. Supply with concessional rate
D. Supply on which no GST is payable but ITC not available
Discuss
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Correct Answer: Option D

Explanation:
Exempt supplies are not taxed and no credit of input tax is allowed.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #735
The 'Advance Ruling' under GST provides:
A. Audit report
B. Clarity on tax liability on proposed transactions
C. Penalty imposition
D. Registration
Discuss
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Correct Answer: Option B

Explanation:
Advance ruling helps businesses determine GST implications before undertaking a transaction.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #736
The 'GST Audit' is required for taxpayers with turnover exceeding:
A. ₹10 crore
B. ₹5 crore
C. ₹1 crore
D. ₹2 crore
Discuss
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Correct Answer: Option D

Explanation:
GST audit by a chartered accountant/cost accountant is required if aggregate turnover exceeds ₹2 crore.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #737
The 'Anti-Profiteering Authority' under GST ensures:
A. Benefits of tax rate reduction are passed to consumers
B. Tax evasion is prevented
C. Companies do not make profit
D. Suppliers charge high prices
Discuss
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Correct Answer: Option A

Explanation:
It ensures that reduction in tax rates or benefit of ITC is passed on as commensurate price reduction.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #738
The 'Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019' was for:
A. Resolution of pending indirect tax disputes under pre-GST regime
B. GST disputes
C. Income tax disputes
D. Direct tax disputes
Discuss
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Correct Answer: Option A

Explanation:
It was a dispute resolution-cum-amnesty scheme for legacy excise and service tax cases.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #739
The 'Vivad se Vishwas' scheme relates to:
A. Direct tax disputes
B. GST disputes
C. Customs disputes
D. Indirect tax disputes
Discuss
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Correct Answer: Option A

Explanation:
Vivad se Vishwas is a scheme for settlement of pending income tax disputes.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #740
The 'Faceless Assessment' in income tax aims to:
A. Eliminate physical interface between taxpayer and tax authorities
B. Increase face-to-face meetings
C. Decrease tax rates
D. Simplify GST
Discuss
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Correct Answer: Option A

Explanation:
Faceless assessment uses technology-driven anonymized scrutiny to reduce corruption and harassment.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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