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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Page 60 of 94
Question #1181
The 'Economic Survey' is presented:
A. After the budget
B. On the same day
C. A day before the budget
D. A month before
Discuss
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Correct Answer: Option C

Explanation:
Economic Survey is tabled typically a day before the Union Budget.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1182
The 'Fiscal Deficit' is:
A. Total expenditure minus total revenue
B. Revenue deficit minus grants
C. Primary deficit plus interest payments
D. Total expenditure minus total receipts (excluding borrowings)
Discuss
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Correct Answer: Option D

Explanation:
Fiscal deficit = Total expenditure - (Revenue receipts + Non-debt capital receipts). It indicates borrowing requirement.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1183
The 'Revenue Deficit' is:
A. Fiscal deficit minus borrowings
B. Revenue expenditure minus revenue receipts
C. Total expenditure minus total receipts
D. Capital expenditure minus capital receipts
Discuss
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Correct Answer: Option B

Explanation:
Revenue deficit = Revenue expenditure - Revenue receipts.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1184
The 'Zero Base Budgeting' (ZBB) was first introduced in a country by:
A. Japan
B. India
C. USA
D. UK
Discuss
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Correct Answer: Option C

Explanation:
ZBB was popularised in the 1970s in the United States.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1185
The 'Performance Budget' focuses on:
A. Who spends the money
B. When the money is spent
C. What is achieved with the money spent
D. How much money is spent
Discuss
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Correct Answer: Option C

Explanation:
It links outlays to outputs/outcomes.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1186
The 'Outcome Budget' in India is a part of:
A. Finance Bill
B. Economic Survey
C. The annual budget documents, showing measurable outcomes
D. Separate document from budget
Discuss
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Correct Answer: Option C

Explanation:
Outcome budget is included in the budget papers to link expenditure with targeted results.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1187
The 'Controller General of Accounts' (CGA) is under:
A. Ministry of Finance
B. RBI
C. CAG
D. NITI Aayog
Discuss
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Correct Answer: Option A

Explanation:
CGA is the principal accounting advisor to the Government of India, functioning under Ministry of Finance.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1188
The 'Comptroller and Auditor General' (CAG) is appointed by:
A. Prime Minister
B. President of India
C. Finance Minister
D. Parliament
Discuss
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Correct Answer: Option B

Explanation:
CAG is appointed by the President under Article 148.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1189
The CAG's audit report on government accounts is submitted to:
A. Prime Minister
B. Finance Minister
C. President / Governor
D. Lok Sabha directly
Discuss
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Correct Answer: Option C

Explanation:
CAG submits reports to the President (Union) or Governor (State), who cause them to be laid before Parliament/Legislature.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1190
The 'Indian Audit and Accounts Department' works under:
A. Comptroller and Auditor General
B. Planning Commission
C. Ministry of Finance
D. RBI
Discuss
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Correct Answer: Option A

Explanation:
The IA&AD is headed by the CAG.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1191
The 'Cost Accounting Standards' are issued by:
A. SEBI
B. MCA
C. Institute of Cost Accountants of India (ICMAI)
D. ICAI
Discuss
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Correct Answer: Option C

Explanation:
ICMAI (formerly ICWAI) issues Cost Accounting Standards.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1192
In cost accounting, 'Idle Time' means:
A. Overtime worked
B. Time for which workers are paid but no production occurs
C. Standard time
D. Time spent on maintenance
Discuss
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Correct Answer: Option B

Explanation:
Idle time is unproductive time for which wages are paid.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1193
The 'Activity Based Costing' (ABC) method focuses on:
A. Budgeting
B. Allocating overheads based on labour hours
C. Only direct costs
D. Identifying activities and assigning costs based on usage of those activities
Discuss
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Correct Answer: Option D

Explanation:
ABC assigns overheads more accurately by tracing them to activities.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1194
The 'Transfer Price' in cost accounting for internal transfers is:
A. Cost plus fixed profit
B. Government regulated price
C. Market price only
D. Price at which goods/services are transferred between divisions of the same company
Discuss
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Correct Answer: Option D

Explanation:
Transfer price is the value placed on internal transfers between responsibility centres.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1195
A company's 'Return on Capital Employed' (ROCE) improved from 12% to 15%. This indicates:
A. Decrease in efficiency
B. Better utilisation of capital
C. Increase in debt
D. Decrease in profit
Discuss
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Correct Answer: Option B

Explanation:
ROCE measures profitability relative to capital employed; increase signals improved efficiency.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1196
The 'Earnings Before Interest, Tax, Depreciation and Amortisation' (EBITDA) is a measure of:
A. Net profit
B. Liquidity
C. Cash flow from investing
D. Operating profitability
Discuss
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Correct Answer: Option D

Explanation:
EBITDA focuses on operational performance before non-cash items and capital structure.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1197
The 'Dividend Payout Ratio' is:
A. Dividend / Sales
B. Earnings / Dividend
C. Dividend per share / Earnings per share
D. Dividend / Total assets
Discuss
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Correct Answer: Option C

Explanation:
DPR measures proportion of earnings distributed as dividends.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1198
The 'Price Earning' (P/E) ratio is calculated as:
A. Dividend / Market price
B. Market price per share / Earnings per share
C. Market price / Book value
D. Earnings per share / Market price per share
Discuss
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Correct Answer: Option B

Explanation:
P/E ratio indicates how much investors are willing to pay per rupee of earnings.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1199
In ratio analysis, 'Stock Turnover Ratio' indicates:
A. Debt repayment capacity
B. Fixed asset efficiency
C. How quickly inventory is sold
D. The number of employees
Discuss
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Correct Answer: Option C

Explanation:
Stock turnover = Cost of goods sold / Average stock, measuring inventory management efficiency.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1200
A 'High Debtors Turnover Ratio' indicates:
A. Efficient collection from debtors
B. Large bad debts
C. Slow collection from debtors
D. Excess inventory
Discuss
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Correct Answer: Option A

Explanation:
Higher ratio means faster collection of receivables.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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