100 Accounts MCQ Questions in english

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100 Accounts MCQ Questions in english हिन्दी

100. Which of the following is the tax levied on share or securities transferable in India?

A. Capital gains tax

B. Goods and services tax

C. Securities Transaction Tax

D. Service tax

99. Which of the following does not comprise part of a company's 'Working Capital'?

A. Cash

B. Accounts payable

C. Accounts receivable

D. Long-term debt

98. Which of the following is the method used in accounting for long-term leases under Indian accounting standards?

A. Operating lease method

B. Full cost method

C. Financial lease method

D. Revaluation method

97. Indian accounting standards prescribe the following treatment for 'Goodwill' that arises from business combinations:

A. It is amortized over 5 years.

B. It is recorded as a liability in the balance sheet.

C. It is tested for impairment annually and written down if required.

D. It is fully expensed immediately in the profit and loss account.

96. Which of the following is true about the ‘Income Tax Audit’ under Section 44AB of the Income Tax Act, 1961?

A. It is required for all businesses irrespective of turnover.

B. It is mandatory for businesses with a turnover exceeding Rs. 1 crore.

C. It is required for businesses having a turnover exceeding Rs. 25 lakh.

D. It is not required for companies.

95. Which of the following is NOT an income form to calculate the income of an Indian company?

A. Income from house property

B. Income from the sale of goods and services

C. Income from agricultural activities

D. Income from a foreign source

94. Which of the following is correct about the 'discounted cash flow' (DCF) approach to valuation?

A. It values a business exclusively based on its past financial performance.

B. It values a business by discounting its future cash flows to present value.

C. It ignores the time value of money.

D. It is mainly applied for valuation of fixed assets.

93. Which of the following types of income is subject to tax under the head 'Income from Other Sources' in India?

A. Rent from property

B. Revenue from a business or profession

C. Income received in terms of dividends

D. Income received as salary

92. Which of the following is an example of non-operating income in the profit and loss account?

A. Sales revenue

B. Interest on investment

C. Employee salaries

D. Direct production costs

91. The accounting concept of 'prudence' prescribes that:

A. All gains must be recognized immediately.

B. Losses be recognized when they are likely, though not as yet realized.

C. All assets be recognized immediately at fair value.

D. Profits be kept within conservative levels.

90. Which of the following statements is correct regarding 'Deferred Tax Liability' as per Indian Accounting Standards?

A. It occurs when tax payable is more than accounting profit.

B. It refers to those taxes that will be paid in the future on account of temporary differences between accounting profit and taxable income.

C. It occurs on account of permanent differences between accounting profit and taxable income.

D. It represents tax paid in the current year.

89. What is the main objective of 'Transfer Pricing' regulations in India?

A. To standardize pricing of goods sold within India

B. To prevent tax avoidance by companies with international operations

C. To calculate the customs duties on imported goods

D. To set guidelines for pricing goods and services for export

88. Which of the following is a non-cash item for statement of cash flows preparation?

A. Depreciation

B. Purchase of fixed assets

C. Repayment of debt

D. Issuance of equity shares

87. Under the Income Tax Act, 1961, income earned in India is taxed according to:

A. Residential status of the taxpayer

B. Nationality of the taxpayer

C. Place of income generation

D. Place of incorporation of the business

86. Under the Companies Act, 2013, the appointment of an auditor for a company is made for a term of:

A. 1 year

B. 3 years

C. 5 years

D. 10 years

85. Which of the following is an example of an intangible asset under Indian accounting standards?

A. Trademark

B. Inventory

C. Building

D. Cash

84. The 'fair value' of an asset is best described as:

A. The price at which an asset is recorded in the books of accounts.

B. The market value of the asset on the reporting date.

C. The value determined by depreciation methods.

D. The price at which an asset can be bought or sold in an open market.

83. Which of the following is NOT considered as a part of the cost of inventory under Indian accounting standards?

A. Purchase price

B. Import duties

C. Distribution expenses

D. Transportation costs

82. Which of the following is a characteristic of 'capital reserves' under Indian GAAP?

A. They are created by the transfer of profits.

B. They are used for distributing dividends.

C. They arise from the revaluation of assets or through capital contributions.

D. They are shown under current liabilities in the balance sheet.

81. What is the proper accounting for a sale and leaseback transaction?

A. The sale is revenue, and the lease is an operating lease.

B. The sale is treated as a capital expenditure, and the lease is treated as a financial lease.

C. The sale is ignored, and the lease is treated as a finance lease.

D. The leaseback transaction does not affect the financial statements.

80. The ‘extraordinary items’ in the profit and loss account of a company refer to:

A. Income from normal business operations

B. Unusual and infrequent events affecting the profit of the company

C. Recurring investment income

D. Income generated by normal business operations

79. Which of the following taxes is levied on the purchase of goods or services under the GST regime?

A. Value Added Tax (VAT)

B. Central Sales Tax (CST)

C. Goods and Services Tax (GST)

D. Excise Duty

78. Under Indian accounting standards, when is a provision recognized in financial statements?

A. When it is probable that an outflow of resources will be required to settle the obligation.

B. When the company is legally obligated to pay.

C. When a specific amount of liability is determined.

D. When payment is made to settle a liability.

77. Which of the following is NOT a feature of the IFRS (International Financial Reporting Standards) compared to Indian GAAP?

A. IFRS is principle-based rather than rule-based

B. IFRS has a more comprehensive framework

C. IFRS provides detailed guidance for specific industries

D. IFRS is mandatory for all companies in India

76. Which of the following ratios measures a company's ability to meet its short-term liabilities?

A. Current ratio

B. Return on assets

C. Inventory turnover ratio

D. Price-to-earnings ratio

75. The treatment of 'contingent liabilities' is:

A. They are recorded as liabilities in the balance sheet.

B. They are disclosed in the notes to the financial statements.

C. They are capitalized.

D. They are ignored in the financial statements.

74. According to Indian accounting standards, which of the following is to be disclosed in the annual financial statements?

A. Personal information of directors

B. Auditor's report and opinion

C. Future projects and business strategy

D. Revenue projections for the next 3 years

73. Which of the following would be an 'event after the reporting period' within the context of Indian Accounting Standards (Ind AS)?

A. A major fraud that occurred after the reporting date

B. A change in accounting estimates

C. A seasonal fluctuation in the market

D. Depreciation on fixed assets

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