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 83 of 94
Question #1641
The 'Goods and Services Tax' on healthcare services is:
A. Exempt
B. 18%
C. 5%
D. 12%
Discuss
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Correct Answer: Option A

Explanation:
Healthcare services are generally exempt from GST.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1642
The 'GST on Education Services' provided by educational institutions is:
A. Exempt for specified services and institutions
B. 18%
C. 12%
D. 5%
Discuss
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Correct Answer: Option A

Explanation:
Services provided by educational institutions to students/faculty are exempt.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1643
The 'GST on Affordable Housing' under the new regime is:
A. 1% without ITC
B. 12%
C. 5%
D. Exempt
Discuss
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Correct Answer: Option A

Explanation:
GST for affordable housing is 1% without input tax credit.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1644
The 'GST on Non-Affordable Housing' (other than affordable) is:
A. 18%
B. 28%
C. 5% without ITC
D. 12% with ITC
Discuss
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Correct Answer: Option C

Explanation:
Non-affordable residential real estate projects are taxed at 5% without ITC.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1645
The 'GST Compensation Cess' on motor vehicles for personal use is:
A. 10%
B. Fixed 28%
C. Varies from 1% to 22% depending on engine capacity and type
D. Nil
Discuss
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Correct Answer: Option C

Explanation:
Compensation cess on automobiles ranges from 1% to 22% over and above the 28% GST.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1646
The 'Deferred Tax' on account of timing differences is calculated using:
A. Minimum Alternate Tax rate
B. Enacted tax rates that will apply in the periods when the differences reverse
C. Average tax rate
D. Current year tax rate
Discuss
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Correct Answer: Option B

Explanation:
Deferred tax is measured using tax rates that have been enacted or substantively enacted by the reporting date.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1647
The 'Segment Reporting' is primarily useful for:
A. Investors to assess the performance of different business lines
B. Suppliers
C. Tax authorities
D. Employees
Discuss
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Correct Answer: Option A

Explanation:
Segment information helps users understand the entity's diverse operations.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1648
The 'Interim Financial Report' should include:
A. Full annual report
B. Only a condensed balance sheet
C. Only profit and loss
D. Condensed set of financial statements and selected explanatory notes
Discuss
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Correct Answer: Option D

Explanation:
As per Ind AS 34, interim report includes condensed statements and notes.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1649
The 'Events after the Reporting Period' (Ind AS 10) are classified as:
A. Adjusting and non-adjusting events
B. Only adjusting events
C. Contingent events
D. Only non-adjusting
Discuss
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Correct Answer: Option A

Explanation:
Adjusting events provide evidence of conditions that existed at the reporting date; non-adjusting indicate conditions that arose after.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1650
The 'Accounting Policy Changes' are applied:
A. Prospectively
B. Arbitrarily
C. Retrospectively, unless impracticable
D. Only with government approval
Discuss
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Correct Answer: Option C

Explanation:
Ind AS 8 requires retrospective application of changes in accounting policies.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1651
The 'Correction of an Error' (Ind AS 8) is done:
A. By charging to current year
B. Prospectively
C. Retrospectively by restating comparative amounts
D. By creating a provision
Discuss
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Correct Answer: Option C

Explanation:
Material prior period errors are corrected retrospectively.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1652
The 'Investment Property' (Ind AS 40) is measured initially at:
A. Replacement value
B. Net realisable value
C. Cost
D. Fair value
Discuss
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Correct Answer: Option C

Explanation:
Initial measurement is at cost; subsequently either cost model or fair value model.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1653
The 'Agriculture' (Ind AS 41) requires biological assets to be measured at:
A. Historical cost
B. Net realisable value
C. Cost
D. Fair value less costs to sell
Discuss
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Correct Answer: Option D

Explanation:
Ind AS 41 mandates fair value measurement for biological assets.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1654
The 'Share Based Payments' (Ind AS 102) require equity-settled transactions to be measured at:
A. Nominal value
B. Intrinsic value
C. Fair value of goods/services received, or if not reliably determinable, fair value of equity instruments granted
D. Market price on grant date only
Discuss
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Correct Answer: Option C

Explanation:
Equity-settled share-based payments are measured at fair value.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1655
The 'Non-Current Assets Held for Sale' (Ind AS 105) are measured at:
A. Lower of carrying amount and fair value less costs to sell
B. Cost
C. Revaluation amount
D. Fair value
Discuss
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Correct Answer: Option A

Explanation:
Ind AS 105 requires measurement at lower of carrying amount and fair value less costs to sell.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1656
The 'Business Combinations' (Ind AS 103) require acquisition method. It involves:
A. Identifying acquirer, determining acquisition date, recognising and measuring identifiable assets, liabilities, and non-controlling interest, and recognising goodwill or bargain purchase
B. No goodwill
C. Only merger accounting
D. Pooling of interests
Discuss
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Correct Answer: Option A

Explanation:
Ind AS 103 mandates the acquisition method for business combinations.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1657
The 'Goodwill' arising on acquisition is:
A. Written off immediately
B. Not amortised but tested for impairment annually
C. Capitalised and depreciated
D. Amortised over 10 years
Discuss
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Correct Answer: Option B

Explanation:
Goodwill is not amortised but subject to annual impairment testing as per Ind AS 36.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1658
The 'Non-Controlling Interest' (NCI) at acquisition date can be measured at:
A. Only proportionate share of net assets
B. Either fair value or proportionate share of net assets
C. Book value
D. Only fair value
Discuss
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Correct Answer: Option B

Explanation:
Ind AS 103 allows a choice.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1659
The 'Joint Arrangements' (Ind AS 111) are classified as:
A. Only joint ventures
B. Only joint operations
C. Associates
D. Joint ventures and joint operations
Discuss
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Correct Answer: Option D

Explanation:
Ind AS 111 classifies joint arrangements based on rights and obligations.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #1660
The 'Investment in Associates' (Ind AS 28) is accounted for using:
A. Consolidation
B. Cost method
C. Equity method
D. Fair value through profit or loss
Discuss
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Correct Answer: Option C

Explanation:
Equity method is applied for associates, except when held for sale.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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