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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Total Questions

Practice Questions

Page 65 of 94
Question #1281
The 'Safe Harbour Rules' under transfer pricing provide:
A. Penalty provisions
B. Circumstances in which tax authorities accept transfer price declared by taxpayer
C. No relief
D. Criminal prosecution
Discuss
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Correct Answer: Option B

Explanation:
Safe harbour rules reduce litigation by accepting declared margins in specified conditions.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1282
The 'Country-by-Country Report' (CbCR) filing in India is required for MNE groups with consolidated revenue exceeding:
A. ₹500 crore
B. No threshold
C. ₹1,000 crore
D. ₹5,500 crore (€750 million)
Discuss
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Correct Answer: Option D

Explanation:
The threshold is aligned with BEPS Action 13, i.e., €750 million.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1283
The 'Master File' under transfer pricing documentation is a part of:
A. GST return
B. Income tax return
C. Audit report
D. Transfer pricing documentation (three-tiered structure)
Discuss
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Correct Answer: Option D

Explanation:
Master file, local file, and CbCR form the three-tier transfer pricing documentation.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1284
The 'Equalisation Levy 2.0' at 2% applies to:
A. E-commerce supply of goods or services by non-resident e-commerce operator
B. Online advertisement
C. All sales
D. All digital services
Discuss
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Correct Answer: Option A

Explanation:
Finance Act 2020 expanded equalisation levy to e-commerce operators at 2%.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1285
The 'TDS on purchase of goods' under Section 194Q is applicable when:
A. No TDS
B. Buyer's turnover exceeds ₹10 crore and purchase from a seller exceeds ₹50 lakh in a year
C. Total sales exceed ₹50 lakh in previous year
D. All purchases
Discuss
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Correct Answer: Option B

Explanation:
Section 194Q requires TDS at 0.1% on purchase of goods exceeding ₹50 lakh by buyer with turnover > ₹10 crore.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1286
The 'Section 194O' deals with TDS on:
A. E-commerce transactions
B. Professional fees
C. Rent
D. Salary
Discuss
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Correct Answer: Option A

Explanation:
E-commerce operators deduct TDS on payments to e-commerce participants at 1%.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1287
The 'Section 194R' requires TDS on:
A. Salary
B. Interest
C. Dividends
D. Benefits or perquisites arising from business or profession
Discuss
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Correct Answer: Option D

Explanation:
TDS at 10% on any benefit or perquisite exceeding ₹20,000 in a year from business/profession.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1288
The 'Tax on Provident Fund contributions' above specified limit was introduced by:
A. Finance Act, 2020
B. 2019
C. Finance Act, 2021
D. No tax
Discuss
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Correct Answer: Option C

Explanation:
Interest on employee contributions exceeding ₹2.5 lakh per annum (₹5 lakh for government employees) in PF is taxable from FY 2021-22.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1289
The 'Virtual Digital Assets' (VDA) are taxed under Income Tax at:
A. 30% (plus surcharge and cess)
B. 20%
C. 10%
D. Normal slab rates
Discuss
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Correct Answer: Option A

Explanation:
Income from transfer of VDAs like cryptocurrency is taxed at 30% flat rate.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1290
The 'TDS on transfer of virtual digital assets' under Section 194S is:
A. 2%
B. 5%
C. 10%
D. 1%
Discuss
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Correct Answer: Option D

Explanation:
TDS at 1% on transfer of VDA if consideration exceeds specified limits.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1291
The 'GST on Virtual Digital Assets' is:
A. 18%
B. 5%
C. 28%
D. Exempt
Discuss
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Correct Answer: Option A

Explanation:
GST on services related to VDA is generally 18%.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1292
The 'Cryptocurrency' as per Indian laws is:
A. Only allowed for banks
B. Not considered legal tender but taxed
C. Banned completely
D. Legal tender
Discuss
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Correct Answer: Option B

Explanation:
Cryptocurrencies are not legal tender in India but gains are taxed.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1293
The 'Digital Rupee' (e₹) is issued by:
A. Commercial banks
B. NPCI
C. Government of India
D. Reserve Bank of India
Discuss
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Correct Answer: Option D

Explanation:
CBDC (Central Bank Digital Currency) is issued by the RBI.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1294
The 'Green Accounting' is also known as:
A. Social accounting
B. Environmental accounting
C. Human resource accounting
D. Inflation accounting
Discuss
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Correct Answer: Option B

Explanation:
Green accounting incorporates environmental costs and benefits.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1295
The 'Sustainability Reporting' in India for top listed companies is mandated by:
A. RBI
B. MCA
C. SEBI (Business Responsibility and Sustainability Report - BRSR)
D. ICAI
Discuss
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Correct Answer: Option C

Explanation:
SEBI requires the top 1000 listed companies to file BRSR.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1296
The 'Integrated Reporting' framework is developed by:
A. FASB
B. IFRS Foundation
C. ICAI
D. International Integrated Reporting Council (IIRC)
Discuss
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Correct Answer: Option D

Explanation:
IIRC (now part of IFRS Foundation) developed the International Framework.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1297
The 'XBRL' (eXtensible Business Reporting Language) is used for:
A. Manual accounting
B. Inventory management
C. Tax filing only
D. Standardised electronic communication of financial data
Discuss
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Correct Answer: Option D

Explanation:
XBRL facilitates digital reporting of financial statements in a machine-readable format.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1298
The 'MCA 21' portal is used for:
A. GST filing
B. Income tax filing
C. Company incorporation, filing of financial statements, and other compliance
D. TDS return
Discuss
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Correct Answer: Option C

Explanation:
MCA 21 is the e-governance initiative of the Ministry of Corporate Affairs.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1299
The 'Goods and Services Tax Network' (GSTN) is structured as:
A. Section 8 (not-for-profit) company
B. Public sector undertaking
C. Private limited company
D. Government department
Discuss
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Correct Answer: Option A

Explanation:
GSTN is a not-for-profit company under Section 8 of Companies Act.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1300
The 'Comptroller and Auditor General' (CAG) is not responsible for audit of:
A. Government departments
B. Public sector banks (statutory audit by CA firms)
C. Autonomous bodies substantially financed by government
D. Government companies
Discuss
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Correct Answer: Option B

Explanation:
Statutory audit of public sector banks is conducted by chartered accountant firms appointed by RBI/Central Government; CAG conducts supplementary audit.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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