Accountancy MCQs | Chapter-wise Multiple Choice Questions with Answers

Question #1161

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The main difference between cash basis and accrual basis is:

A. Use of vouchers

B. Timing of recognition of revenues and expenses

C. Trial balance preparation

D. Recording of transactions

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Correct Answer: Option B

Explanation:
Cash basis recognises on cash flow; accrual on earning/incurring.

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Question #1162

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Social accounting is mandatory for:

A. All public sector units

B. All banks

C. All companies

D. No universal mandate, but some large entities voluntarily disclose

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Correct Answer: Option D

Explanation:
Social accounting is largely voluntary except for some mandated disclosures like CSR.

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Question #1163

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A 'Social Audit' differs from financial audit as it:

A. Is done by a chartered accountant only

B. Is for tax purposes

C. Examines social and environmental performance

D. Ignores stakeholders

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Correct Answer: Option C

Explanation:
Social audit evaluates non-financial aspects like social impact.

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Question #1164

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Under single entry system, it is often difficult to prepare:

A. Personal accounts

B. Profit and Loss Account and Balance Sheet

C. Cash account

D. Debtors list

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Correct Answer: Option B

Explanation:
Because real and nominal accounts are incomplete, final accounts cannot be prepared directly.

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Question #1165

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PFMS integrates with which system for Direct Benefit Transfer?

A. Core Banking System

B. Both A and B

C. Aadhaar Payment Bridge

D. Only UPI

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Correct Answer: Option B

Explanation:
PFMS uses the banking network and Aadhaar-based payments for DBT.

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Question #1166

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The 'Indian Financial Management System' for central government is managed by:

A. Securities and Exchange Board of India

B. Reserve Bank of India

C. Ministry of Corporate Affairs

D. Controller General of Accounts (CGA)

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Correct Answer: Option D

Explanation:
CGA is the principal advisor on accounting matters for the Union Government.

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Question #1167

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The 'Exchequer Control' in government accounting means:

A. Withdrawal of funds only as per parliamentary grants

B. Free spending

C. Only tax collection

D. No control over expenditure

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Correct Answer: Option A

Explanation:
Exchequer control ensures government spending is in accordance with approved grants.

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Question #1168

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Under GST, the 'Taxable Event' is:

A. Production

B. Manufacture

C. Supply of goods or services

D. Sale

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Correct Answer: Option C

Explanation:
GST is levied on 'supply' rather than manufacture or sale alone.

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Question #1169

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The 'Dual GST' model in India comprises:

A. CGST and SGST/UTGST

B. CGST and IGST

C. Only IGST

D. Only CGST

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Correct Answer: Option A

Explanation:
Dual GST includes Central GST and State GST simultaneously on intra-state supplies.

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Question #1170

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The 'Place of Supply' for inter-state supply is:

A. The state where movement terminates

B. Location of supplier

C. Any state

D. Location of recipient

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Correct Answer: Option A

Explanation:
For inter-state, place of supply generally is the destination state.

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Question #1171

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The 'Time of Supply' for services under forward charge, if invoice issued within prescribed period, is:

A. Due date of payment

B. Date of invoice or date of provision of service, whichever is earlier

C. Date of payment

D. Date of completion of service

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Correct Answer: Option B

Explanation:
Time of supply is earliest of date of invoice or date of payment (if invoice not issued within period, date of provision).

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Question #1172

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The 'Composition Scheme' under GST is not available to:

A. Manufacturers

B. Restaurants not serving alcohol

C. Service providers (except restaurant) with aggregate turnover above ₹50 lakh

D. Traders

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Correct Answer: Option C

Explanation:
Composition scheme for services is restricted to certain categories with turnover up to ₹50 lakh.

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Question #1173

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The GST 'E-invoicing' is mandatory for taxpayers with aggregate turnover above:

A. ₹10 crore

B. ₹1 crore

C. ₹5 crore

D. ₹20 crore

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Correct Answer: Option C

Explanation:
As per recent notifications, e-invoicing is applicable for turnover exceeding ₹5 crore.

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Question #1174

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The 'Input Tax Credit' on capital goods under GST is available:

A. Not allowed

B. Spread over the useful life

C. Only on goods up to ₹5,000

D. 100% in the first year

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Correct Answer: Option D

Explanation:
ITC on capital goods can be availed fully in the year of purchase, except for certain blocked credits.

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Question #1175

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The 'Integrated Tax' (IGST) is levied and collected by:

A. Local bodies

B. State government

C. Central government

D. Both centre and state

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Correct Answer: Option C

Explanation:
IGST is levied by the central government on inter-state supplies and imports.

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Question #1176

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The 'Advance Tax' payment schedule for a non-corporate assessee is:

A. 15th March only

B. 15th June, 15th September, 15th December, 15th March

C. 31st March only

D. 15th September, 15th December, 15th March

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Correct Answer: Option B

Explanation:
For non-corporate taxpayers, advance tax is due in four instalments: 15th June (15%), Sept (45%), Dec (75%), March (100%) of tax due.

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Question #1177

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The 'Presumptive Taxation' under Section 44AD is at 8% of turnover for:

A. Eligible businesses with turnover up to ₹2 crore

B. Companies

C. All businesses

D. LLPs

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Correct Answer: Option A

Explanation:
Section 44AD applies to resident individuals/HUFs/firms (except LLP) carrying on eligible business.

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Question #1178

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The 'Minimum Alternate Tax' (MAT) rate for companies is:

A. 15% (plus surcharge and cess)

B. 22%

C. 18.5%

D. 15%

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Correct Answer: Option A

Explanation:
MAT is 15% of book profits (plus surcharge and cess).

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Question #1179

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The 'GST Compensation Cess' is levied to compensate states for:

A. Excess expenditure

B. Loan repayment

C. Natural calamities

D. Loss of revenue due to GST implementation

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Correct Answer: Option D

Explanation:
Compensation cess compensates states for revenue shortfall during the transition period.

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Question #1180

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The 'Budget' is presented in Parliament by:

A. Finance Minister

B. Prime Minister

C. President

D. Speaker

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Correct Answer: Option A

Explanation:
The Union Budget is presented by the Finance Minister.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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