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.

1861
Total Questions

Practice Questions

Page 53 of 94
Question #1041
A social audit in India under MGNREGA is conducted by:
A. Chartered accountant
B. External auditor appointed by government
C. Gram Sabha through social audit units
D. CAG directly
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
MGNREGA mandates social audit by Gram Sabha with facilitation by social audit units.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1042
Under single entry system, which of the following is usually not maintained?
A. Personal accounts
B. Cash book
C. Real and nominal accounts
D. Debtors and creditors accounts
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Single entry often lacks complete double entry; real and nominal accounts may not be fully maintained.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1043
The Consolidated Fund of India is formed by:
A. Disinvestment proceeds only
B. All revenues received, loans raised, and repayments of loans
C. Only direct taxes
D. Only GST collections
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Consolidated Fund holds all government receipts, borrowings, and loan recoveries.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1044
Which of the following is a direct tax in India?
A. Goods and Services Tax
B. Excise duty on liquor
C. Customs duty
D. Corporate tax
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Corporate tax is levied directly on company profits, thus a direct tax.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1045
GST is a destination-based tax. This means:
A. Tax accrues to the state where goods/services are consumed
B. Tax is retained by the centre
C. Tax is divided equally among all states
D. Tax accrues to the origin state
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Under destination principle, the consuming state gets the SGST portion.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1046
The maximum rate of IGST under GST Act can be:
A. 14%
B. 40%
C. 28%
D. 20%
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
IGST rate is the sum of CGST and SGST rates; since CGST/SGST can go up to 20% each, IGST can be up to 40%.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1047
Which of the following is not a component of budgetary control?
A. Comparison of actuals with budgets
B. Corrective action
C. Tax filing
D. Budgeting
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Budgetary control involves planning, measuring actual performance, comparing, and taking corrective action.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1048
In cost accounting, 'Variable Cost' per unit:
A. Decreases with production
B. Increases with production
C. Fluctuates randomly
D. Remains constant
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Variable cost per unit remains constant; total variable cost changes with output.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1049
The 'Break-Even Point' in units is calculated as:
A. Fixed cost / Variable cost per unit
B. Sales / Contribution per unit
C. Fixed cost / Contribution per unit
D. Profit / Sales
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
BEP (units) = Fixed Costs / (Selling price per unit - Variable cost per unit) = Fixed Cost / Contribution per unit.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1050
Blockchain technology in accounting is primarily used for:
A. Manual ledger posting
B. Immutable and transparent record-keeping
C. Preparing tax returns
D. Calculating depreciation
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Blockchain provides a distributed ledger that is secure, transparent, and tamper-proof.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1051
The term 'Cloud Accounting' refers to:
A. Accounting for cloud computing expenses
B. Manual accounting on paper
C. Accounting for weather-related losses
D. Using accounting software hosted on remote servers accessed via internet
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Cloud accounting uses online software, enabling real-time access and collaboration.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1052
A company issues 20,000 equity shares of ₹10 each at a premium of ₹2 per share. Total amount received on application if full amount called on application will be:
A. ₹2,40,000
B. ₹2,00,000
C. ₹2,20,000
D. ₹1,60,000
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Issue price per share = ₹10 + ₹2 = ₹12. If whole amount called on application, total = 20,000 × 12 = ₹2,40,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1053
A firm's capital is ₹3,00,000, outside liabilities ₹1,50,000. Total assets will be:
A. ₹3,00,000
B. ₹1,00,000
C. ₹4,50,000
D. ₹1,50,000
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Total Assets = Capital + Liabilities = ₹3,00,000 + ₹1,50,000 = ₹4,50,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1054
If the purchase of a printer for ₹12,000 is recorded in the purchases book, the error is:
A. Error of principle
B. Compensating error
C. Error of commission
D. Error of omission
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Printer is an asset, should be capitalised. Recording in purchases book treats it as expense, violating accounting principles.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1055
A bank reconciliation statement is prepared to reconcile the balance of:
A. Purchase book and cash book
B. Cash book (cash column) and passbook
C. Cash book (bank column) and passbook
D. Sales book and passbook
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
BRS reconciles the bank balance as per cash book and bank statement (passbook).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1056
When a fixed asset is sold, any profit on sale is credited to:
A. Capital Account
B. Balance Sheet
C. Profit & Loss Account
D. Trading Account
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Profit on sale of fixed asset is a revenue gain, shown in Profit & Loss Account.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1057
The 'Financial Management' decision relating to the mix of debt and equity is called:
A. Dividend decision
B. Financing decision
C. Liquidity decision
D. Investment decision
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Financing decision concerns how to raise funds, i.e., capital structure.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1058
The working capital requirement of a business is ₹80,000; current ratio is 2:1. Current assets will be:
A. ₹40,000
B. ₹1,20,000
C. ₹1,60,000
D. ₹80,000
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Working capital = CA - CL = 80,000; CA/CL = 2 => CA = 2CL. Then 2CL - CL = 80,000 => CL = 80,000; CA = 1,60,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1059
Interest on drawings is charged to partners' capital/current accounts because:
A. It reduces partners' capital
B. It is an expense for the firm
C. It is an income for the firm
D. It is a liability
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Interest on drawings is a gain for the firm, so it is credited to Profit & Loss Appropriation Account and debited to partners' capital accounts.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1060
In a partnership, 'Profit and Loss Appropriation Account' is a part of:
A. Trading Account
B. Double entry system, prepared after P&L Account
C. Profit and Loss Account
D. Balance Sheet
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
It is prepared after determining net profit to show its distribution among partners.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

More Accountancy and Statistics Topics

Statistics MCQs
Today's Top Topics
Accountancy and Book Keeping 1861 Statistics 1318
Explore Subjects
Geography GK 6121 Static General Knowledge 6362 Maths 5575 Economy GK 2220 English 15164
Practice Mix
Select the most appropriate meaning of the idiom: 'A queer fish'.
x86-64 is also known as:
My eyes are tired because I ___ on the computer for hours.
He stands ___ the door.
Which railway system is designed exclusively for urban mass rapid transport?