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 39 of 94
Question #761
The 'Financial Year' in India for tax purposes is:
A. 1st January to 31st December
B. 1st July to 30th June
C. Diwali to Diwali
D. 1st April to 31st March
Discuss
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Correct Answer: Option D

Explanation:
Indian financial year and tax year runs from April 1 to March 31.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #762
The 'Assessment Year' is the year:
A. Immediately following the previous year, in which income is assessed and taxed
B. Same as previous year
C. Calendar year
D. In which income is earned
Discuss
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Correct Answer: Option A

Explanation:
Assessment year is the year following the financial year (previous year) in which tax is computed.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #763
The 'Due Date' for filing income tax return for an individual not subject to audit is generally:
A. 30th September
B. 31st July of assessment year
C. 31st December
D. 31st March
Discuss
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Correct Answer: Option B

Explanation:
For non-audit cases, the due date is 31st July of the assessment year.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #764
The 'Revised Return' under Income Tax can be filed:
A. Only once
B. Within one year
C. Before the end of the assessment year or completion of assessment, whichever is earlier
D. Any time
Discuss
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Correct Answer: Option C

Explanation:
Revised return can be filed up to 3 months before the end of relevant assessment year or before completion of assessment, whichever is earlier.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #765
The 'Self-Assessment Tax' is paid:
A. By the employer
B. By the assessee on his own after computing tax liability
C. By the bank
D. By the government
Discuss
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Correct Answer: Option B

Explanation:
Self-assessment tax is tax paid voluntarily by the taxpayer on income after considering TDS and advance tax.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #766
The 'Advance Tax' is payable if tax liability exceeds:
A. ₹5,000
B. ₹10,000
C. ₹20,000
D. ₹1,000
Discuss
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Correct Answer: Option B

Explanation:
Advance tax is required to be paid if the net tax liability is ₹10,000 or more.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #767
The 'Set-off and Carry Forward' of losses is governed by:
A. Partnership Act
B. Sections 70 to 80 of Income Tax Act
C. Companies Act
D. GST Act
Discuss
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Correct Answer: Option B

Explanation:
Provisions for set-off and carry forward of losses are contained in Sections 70-80.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #768
Business loss can be carried forward for:
A. 16 years
B. 8 years
C. Indefinitely
D. 4 years
Discuss
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Correct Answer: Option B

Explanation:
Unabsorbed business loss can be carried forward for 8 assessment years immediately succeeding the assessment year in which loss was incurred.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #769
Capital loss can be carried forward for:
A. Indefinitely
B. 4 years
C. 8 years
D. 16 years
Discuss
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Correct Answer: Option C

Explanation:
Capital losses (short-term and long-term) can be carried forward for 8 years.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #770
The 'Deduction under Section 80C' is available up to maximum of:
A. ₹2,00,000
B. ₹50,000
C. ₹1,00,000
D. ₹1,50,000
Discuss
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Correct Answer: Option D

Explanation:
Under Section 80C, maximum deduction is ₹1,50,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #771
Section 80D deduction is for:
A. Donations
B. Education loan interest
C. Health insurance premium
D. Life insurance premium
Discuss
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Correct Answer: Option C

Explanation:
Section 80D allows deduction for medical insurance premium.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #772
The 'Standard Deduction' for salaried individuals under the new tax regime is:
A. ₹75,000
B. ₹40,000
C. ₹1,00,000
D. ₹50,000
Discuss
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Correct Answer: Option A

Explanation:
Finance Act 2024 increased standard deduction to ₹75,000 under new regime.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #773
The 'Rebate under Section 87A' is available to resident individuals with total income up to:
A. ₹2,50,000
B. ₹10,00,000
C. ₹7,00,000 (under new regime)
D. ₹5,00,000
Discuss
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Correct Answer: Option C

Explanation:
Under new regime, rebate up to ₹25,000 is available if total income does not exceed ₹7,00,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #774
The 'Surcharge' on income tax is levied for:
A. High-income individuals/entities
B. Senior citizens only
C. All taxpayers
D. Companies only
Discuss
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Correct Answer: Option A

Explanation:
Surcharge is additional tax on income above specified thresholds for individuals, HUFs, companies.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #775
The 'Health and Education Cess' is levied at:
A. 1%
B. 2% of tax
C. 4% of tax
D. 10%
Discuss
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Correct Answer: Option C

Explanation:
Health and Education Cess at 4% is levied on income tax (including surcharge).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #776
The 'Income Tax Return' form for individuals having salary and one house property is:
A. ITR-4
B. ITR-3
C. ITR-2
D. ITR-1 (Sahaj)
Discuss
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Correct Answer: Option D

Explanation:
ITR-1 is for individuals with salary, one house property, other sources, total income up to ₹50 lakh.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #777
ITR-4 (Sugam) is for:
A. Companies
B. Presumptive income taxpayers
C. Trusts
D. Partnership firms
Discuss
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Correct Answer: Option B

Explanation:
ITR-4 is for individuals/HUFs/firms (other than LLP) having income from business/profession under presumptive taxation.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #778
The 'Tax Residency' of an individual in India is determined based on:
A. Place of birth
B. Citizenship
C. Age
D. Number of days of stay in India
Discuss
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Correct Answer: Option D

Explanation:
Residential status under Income Tax Act is based on physical presence in India.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #779
A 'Non-Resident' is a person who:
A. Is a foreign citizen
B. Lives abroad permanently
C. Has income only outside India
D. Does not satisfy the basic conditions of residence
Discuss
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Correct Answer: Option D

Explanation:
Non-resident status is determined by fulfilling conditions under Section 6 of Income Tax Act.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #780
The 'Double Taxation Avoidance Agreement' (DTAA) aims to:
A. Avoid double taxation of same income in two countries
B. Tax income twice
C. Unify all taxes
D. Increase tax rates
Discuss
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Correct Answer: Option A

Explanation:
DTAA provides relief from double taxation through exemption or credit method.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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