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 82 of 94
Question #1621
The 'Section 40A(3)' disallows expenditure in excess of:
A. ₹10,000 paid in cash per day to a person
B. No limit
C. ₹1,00,000
D. ₹2,000
Discuss
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Correct Answer: Option A

Explanation:
Payment exceeding ₹10,000 in cash for expenses is disallowed, with certain exceptions.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1622
The 'Interest on delayed payment of GST' is:
A. 24% per annum for wrong availment, 18% for others
B. 18% per annum
C. No interest
D. 12%
Discuss
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Correct Answer: Option A

Explanation:
Under GST, interest for delayed payment is 18% generally, and 24% for undue ITC claim.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1623
The 'Penalty' for not issuing a GST invoice is:
A. Fixed amount
B. No penalty
C. 100% of tax due or ₹10,000, whichever is higher
D. 25% of tax
Discuss
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Correct Answer: Option C

Explanation:
Section 122 provides penalty of ₹10,000 or tax amount, whichever higher, for not issuing invoice.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1624
The 'Zero-Rated Supply' under GST means:
A. Non-taxable supply
B. Tax is 0% and ITC is available
C. Exempt supply
D. Tax is 0% and no ITC
Discuss
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Correct Answer: Option B

Explanation:
Zero-rated supplies (exports, SEZ) attract 0% GST with benefit of input tax credit.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1625
The 'Job Work' under GST means:
A. Service contract
B. Consultancy
C. Processing or treatment on goods belonging to another registered person
D. Employment
Discuss
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Correct Answer: Option C

Explanation:
Job work involves undertaking a process on goods owned by another person.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1626
The 'Input Service Distributor' (ISD) under GST distributes:
A. Input tax credit on services received by the head office to branches
B. Goods
C. Cash
D. Stock
Discuss
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Correct Answer: Option A

Explanation:
ISD is an office that receives invoices for services and distributes credit to various units.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1627
The 'Letter of Undertaking' (LUT) for export without payment of IGST is valid for:
A. One transaction
B. Financial year
C. Month
D. One year
Discuss
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Correct Answer: Option B

Explanation:
LUT is valid for a financial year; fresh LUT is filed each year.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1628
The 'GST Refund' for unutilised ITC due to inverted duty structure is available for:
A. All zero-rated supplies
B. Services
C. All goods
D. Goods where input tax rate is higher than output tax rate, subject to certain exclusions
Discuss
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Correct Answer: Option D

Explanation:
Refund of accumulated ITC due to inverted rate structure is allowed for goods, with some exceptions.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1629
The 'Rule 86B' under GST restricts use of ITC for:
A. Taxpayers with taxable outward supplies exceeding ₹50 lakh per month, allowing ITC utilisation for output tax up to 99% of output liability
B. Only composition dealers
C. All taxpayers
D. No restriction
Discuss
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Correct Answer: Option A

Explanation:
Rule 86B mandates that large taxpayers must pay at least 1% of output liability in cash.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1630
The 'Anti-Profiteering' under GST ensures that:
A. Reduction in tax rates or benefit of ITC is passed on to consumers by reducing prices
B. Suppliers increase prices
C. No price change
D. Companies make no profit
Discuss
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Correct Answer: Option A

Explanation:
Anti-profiteering provisions prevent unjust enrichment by suppliers.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1631
The 'National Anti-Profiteering Authority' (NAA) has now been subsumed by:
A. CAG
B. GST Council
C. NFRA
D. Competition Commission of India (CCI)
Discuss
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Correct Answer: Option D

Explanation:
From December 2022, anti-profiteering cases are handled by CCI.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1632
The 'Central Board of Indirect Taxes and Customs' (CBIC) is under:
A. Ministry of Finance, Department of Revenue
B. Ministry of Commerce
C. RBI
D. Ministry of Law
Discuss
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Correct Answer: Option A

Explanation:
CBIC is the apex indirect tax body under the Department of Revenue.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1633
The 'Central Board of Direct Taxes' (CBDT) is responsible for:
A. GST administration
B. Direct tax policy and administration
C. Foreign trade
D. Customs
Discuss
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Correct Answer: Option B

Explanation:
CBDT oversees income tax and other direct taxes.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1634
The 'Tax Information Network' (TIN) in India is managed by:
A. GSTN
B. CBDT
C. RBI
D. NSDL
Discuss
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Correct Answer: Option D

Explanation:
TIN was established by NSDL for collection, processing, and monitoring of TDS.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1635
The 'Centralised Processing Centre' (CPC) of Income Tax Department processes returns for:
A. TDS returns only
B. All assesses
C. Paper returns only
D. E-filed returns
Discuss
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Correct Answer: Option D

Explanation:
CPC processes electronically filed returns for faster processing.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1636
The 'Tax Return Preparer' (TRP) scheme was launched to:
A. Assist small and marginal taxpayers in filing returns
B. Replace CAs
C. Collect tax
D. Audit returns
Discuss
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Correct Answer: Option A

Explanation:
TRP scheme helps individuals who cannot afford professional help.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1637
The 'Kisan Credit Card' (KCC) is a scheme for:
A. Education loan
B. Housing loan
C. Providing timely credit to farmers for agricultural needs
D. Urban credit
Discuss
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Correct Answer: Option C

Explanation:
KCC provides short-term credit to farmers.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1638
The 'Pradhan Mantri Jan Dhan Yojana' (PMJDY) aims at:
A. Financial inclusion by providing bank accounts to unbanked
B. Only pension
C. Only insurance
D. Tax exemption
Discuss
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Correct Answer: Option A

Explanation:
PMJDY is a national mission for financial inclusion.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1639
The 'Atal Pension Yojana' (APY) is focused on:
A. Only government employees
B. Unorganised sector workers, providing guaranteed pension
C. High-income group
D. Corporate employees
Discuss
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Correct Answer: Option B

Explanation:
APY provides a defined pension for subscribers in the unorganised sector.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1640
The 'National Pension System' (NPS) for government employees was made mandatory for those joining after:
A. 1 Jan 2004
B. 1 Jan 2010
C. 1 Jan 2015
D. 1 Jan 1991
Discuss
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Correct Answer: Option A

Explanation:
NPS replaced the old defined benefit pension for central government employees joining on or after 1/1/2004.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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