MCQOPTIONS
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MCQOPTIONS
This section includes 435 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Accounting and Finance (BAF) knowledge and support exam preparation. Choose a topic below to get started.
| 251. |
When the auditor is an employee of the organization being audited, the audit isclassified as _____ |
| A. | a. Internal |
| B. | b. External |
| C. | c. Compliance |
| D. | d. Both A&B |
| Answer» B. b. External | |
| 252. |
A government Co. auditor may be appointed by the |
| A. | C & A – G |
| B. | Shareholders |
| C. | Central Government |
| D. | None of the above |
| Answer» B. Shareholders | |
| 253. |
ITAT all decisions are taken by majority of member’s, if the Members are equallydivided then the final vote will have of |
| A. | President |
| B. | Chairman |
| C. | Assessing officer |
| D. | Majority Of member |
| Answer» B. Chairman | |
| 254. |
The evidence available to auditor is _______ in nature, rather _______ in nature. |
| A. | pervasive, conclusive |
| B. | Conclusive, pervasive |
| C. | limited, unlimited |
| D. | None of the above |
| Answer» D. None of the above | |
| 255. |
The filing of return of loss in case of a person other than a company or firm is: |
| A. | mandatory |
| B. | not mandatory |
| C. | mandatory if the assesses has to carry forward the loss which are allowed to be carried forward & set off |
| D. | none |
| Answer» B. not mandatory | |
| 256. |
Remuneration of an internal auditor is fixed by ______. |
| A. | Management |
| B. | Shareholders |
| C. | Government |
| D. | Statutory body |
| Answer» B. Shareholders | |
| 257. |
Full form of GAS: |
| A. | General Audit System |
| B. | Generalized Audit Software |
| C. | Generalized Audit System. |
| D. | General Assistant System. |
| Answer» C. Generalized Audit System. | |
| 258. |
Mr. Ram owns a house property. He lent it to Laxman at`10,000 p.m. Laxman sublet it to Mr. Maruti on monthly rent of`20,000 p.m. Rental income of Ram is taxable under the head______________. |
| A. | Income from Salary |
| B. | Income from Other Sources |
| C. | Income from House Property |
| D. | Income from Business |
| Answer» D. Income from Business | |
| 259. |
Auditor should be dutiful like a |
| A. | A watch dog |
| B. | A blood hound |
| C. | A detective |
| D. | An insurer |
| Answer» B. A blood hound | |
| 260. |
…. lays out the strategies to be followed to conduct an audit. |
| A. | An action plan |
| B. | An audit plan |
| C. | An audit programme |
| D. | All of the above |
| Answer» B. An audit plan | |
| 261. |
Describe the status of the following person (i.e. individual, HUF, Firm, Company etc.) X and Yare legal heirs of Z. Z died in 2018 and X and Y carry on his business without entering into a partnership. |
| A. | Firm |
| B. | Limited Liability Partnership |
| C. | Company |
| D. | Body of Individual |
| Answer» E. | |
| 262. |
Deduction under section 80-HHE is related to : |
| A. | Export of computer software, technical services outside India. |
| B. | Foreign projects. |
| C. | Business of exports. |
| D. | Backwards industries |
| Answer» B. Foreign projects. | |
| 263. |
Under the Income Tax Act, 1961, depreciation on machinery is charged on_______________. |
| A. | Purchase price of the machinery |
| B. | Written down value of the machinery |
| C. | Market price of the machinery |
| D. | All of the above |
| Answer» C. Market price of the machinery | |
| 264. |
The return of income is to be furnished in |
| A. | ITNS 281 |
| B. | Form 26AS |
| C. | Form 26Q |
| D. | ITR 1 – to 7 (as the case may be) |
| Answer» E. | |
| 265. |
Audit Evidence is obtained by: |
| A. | Inspection. |
| B. | Observation. |
| C. | Inquiry and Confirmation. |
| D. | All of the above. |
| Answer» E. | |
| 266. |
Audit done by the employees of the business undertaking is called ______. |
| A. | Final audit |
| B. | Internal audit |
| C. | Company audit |
| D. | Statutory audit |
| Answer» C. Company audit | |
| 267. |
Professional judgment means a judgment taken by the auditor out of his ______in an audit situation |
| A. | Past experience. |
| B. | Relation with the management |
| C. | Professional experience. |
| D. | Work experience. |
| Answer» D. Work experience. | |
| 268. |
Internal auditor is appointed by______ |
| A. | Management |
| B. | Shareholders |
| C. | Government |
| D. | Statutory body |
| Answer» B. Shareholders | |
| 269. |
An audit programme is a set of _______ which are to be followed for properexecution of audit. |
| A. | Rules |
| B. | Policies |
| C. | Instructions |
| D. | Actions |
| Answer» D. Actions | |
| 270. |
The main object of an audit is |
| A. | Expression of opinion |
| B. | Detection and Prevention of fraud and error |
| C. | Both (1) and (2) |
| D. | Depends on the type of Business |
| Answer» E. | |
| 271. |
Objectives of internal audit includes _________. |
| A. | Proper control |
| B. | Perfect accounting system |
| C. | Asset protection |
| D. | All of the above |
| Answer» E. | |
| 272. |
Assessment under following section is termed as scrutiny assessment |
| A. | 143(3) |
| B. | 144 |
| C. | Both of the above |
| D. | None of the above |
| Answer» B. 144 | |
| 273. |
Which amongst the following is not a head of Income? |
| A. | Salaries |
| B. | Income from house Property |
| C. | Capital gains |
| D. | Income from exports |
| Answer» E. | |
| 274. |
Provident Fund Act was passed in the year ___________. |
| A. | 1932 |
| B. | 1956 |
| C. | 1925 |
| D. | 1922 |
| Answer» B. 1956 | |
| 275. |
_______ is the rent fixed under Rent control Act. |
| A. | Municipal rental value |
| B. | Fair rental value |
| C. | Standard rent |
| D. | Real rent |
| Answer» D. Real rent | |
| 276. |
An auditor is liable for his annual audit of accounts o: |
| A. | Creditors |
| B. | Bankers |
| C. | Owners |
| D. | Debtors. |
| Answer» D. Debtors. | |
| 277. |
M took a loan of Rs. 6,00,000 on 1.4.2011 from a bank for construction of a house. The loan carries an interest @ 10% p.a. The construction is completed on 15.6.2013. The entire loan is still outstanding. Compute the interest allowable for the assessment year 2020- 21 |
| A. | Rs. 60,000 |
| B. | Rs. 1,80,000 |
| C. | Rs. 84,000 |
| D. | Rs. 24,000 |
| Answer» D. Rs. 24,000 | |
| 278. |
An auditor who accepts an audit but does not possess the industry expertiseof the business entity should |
| A. | engage experts |
| B. | obtain knowledge of matters that relate to the nature of entity’s business |
| C. | inform management about it |
| D. | take help of other auditors. |
| Answer» B. obtain knowledge of matters that relate to the nature of entity’s business | |
| 279. |
An assessee incurred expense of tax on non monetary perquisites of employees.Such expenditure shall be considered as: |
| A. | Revenue expenditure |
| B. | Deferred revenue |
| C. | Capital expenditure |
| D. | Expressly disallowed |
| Answer» E. | |
| 280. |
Mr. X has started has business from 1st Sept '16 and does not have any other source of income. His first previous year will start from |
| A. | 1st April '16 |
| B. | 1st Sept '16 |
| C. | Any of the above |
| D. | None of the above. |
| Answer» C. Any of the above | |
| 281. |
Which of the following statement is not true regarding appointment of statutory auditor by the Central Government? |
| A. | Such powers have been conferred upon it by section 224(3). |
| B. | If a company fails to appoint an auditor at a general meeting. |
| C. | If an auditor refuses to accept appointment, the powers of the Central Government can be exercis |
| Answer» C. If an auditor refuses to accept appointment, the powers of the Central Government can be exercis | |
| 282. |
On completion of an audit _______serves the purpose of audit record which may beuseful for future reference. |
| A. | Audit programme |
| B. | Audit working papers |
| C. | Audit plan |
| D. | Audit notes |
| Answer» B. Audit working papers | |
| 283. |
Contribution was made by PFI towards Credit Guarantee Fund Trust. Suchexpenditure shall be considered as: |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Deferred revenue expenditure |
| D. | Illegal expenditure |
| Answer» B. Capital expenditure | |
| 284. |
Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is anexample of…………………….. |
| A. | Error of principle. |
| B. | Error of commission. |
| C. | Error of omission. |
| D. | Error of duplication. |
| Answer» B. Error of commission. | |
| 285. |
The auditor has to obtain _______ to substantiate his opinion on the financialstatements. |
| A. | Internal evidence |
| B. | External evidence |
| C. | Internal and external evidence |
| D. | Sufficient and appropriate evidence |
| Answer» E. | |
| 286. |
In case the Key man insurance policy is taken in name of any other person any sumreceived on its maturity by such person shall be taxable under the head - |
| A. | Salaries |
| B. | Profits & Gains of Business or Profession |
| C. | Capital Gains |
| D. | Income from Other Sources |
| Answer» E. | |
| 287. |
For computation of Gross Annual Value, if actual rent is more than expected rent,then we select the ______________. |
| A. | Actual rent |
| B. | Expected rent |
| C. | Any of the above |
| D. | None of the above |
| Answer» B. Expected rent | |
| 288. |
If there is capital loss, the auditor should |
| A. | Not allow payment of dividend |
| B. | Allow payment of dividends |
| C. | Allow payment of dividends after making such losses good |
| D. | None of the above |
| Answer» C. Allow payment of dividends after making such losses good | |
| 289. |
Audit programme is prepared by _____ |
| A. | The auditor |
| B. | The client |
| C. | The audit assistant |
| D. | The auditor and his audit assistants |
| Answer» B. The client | |
| 290. |
Surcharge of 10 per cent is payable by an individual where the total income exceeds: |
| A. | Rs.7,50,000 |
| B. | Rs.8,50,000 |
| C. | Rs.10,00,000 |
| D. | None of the three |
| Answer» D. None of the three | |
| 291. |
_______ are the documents prepared or obtained by the auditors in connection withthe audit. |
| A. | Audit notes |
| B. | Audit working papers |
| C. | Audit report |
| D. | All of the above |
| Answer» E. | |
| 292. |
Sec.139 (7) provides that in the case of a Government Company or any other company owned or controlled by the Central Government, or by any State Government, the first auditor shall be appointed by _________ |
| A. | Comptroller and Auditor-General of India |
| B. | Central Government |
| C. | State Government |
| D. | None of the above |
| Answer» B. Central Government | |
| 293. |
An assessee incurred a sum of Rs.1,10,000 for alteration of the memorandum andarticles of association. Such expenditure shall be considered as: |
| A. | Revenue expenditure |
| B. | Deferred revenue expenditure |
| C. | Capital expenditure |
| D. | Non-deductible expenditure |
| Answer» B. Deferred revenue expenditure | |
| 294. |
As per the requirements of section 226(3) and 226(4) a person is disqualifiedfrom being appointed as a statutory auditor if he holds……………… |
| A. | Equity shares or debentures of the company. |
| B. | Equity shares carrying voting of the company. |
| C. | Shares carrying voting rights of the company. |
| D. | Security carrying voting rights of the company. |
| Answer» E. | |
| 295. |
Life Insurance Corporation of India is a _______________. |
| A. | AOP |
| B. | Firm |
| C. | Company |
| D. | Individual |
| Answer» D. Individual | |
| 296. |
All companies other than those covered u/s 25 are required to file return of Incomein: |
| A. | Form ITR6 |
| B. | Form ITR5 |
| C. | Form ITR4 |
| D. | Form ITR7 |
| Answer» B. Form ITR5 | |
| 297. |
Deduction under section 35-D is related to: |
| A. | Preliminary Expenses |
| B. | Foreign projects. |
| C. | Business of exports. |
| D. | Backwards industries. |
| Answer» B. Foreign projects. | |
| 298. |
……………..followed by the enterprise affect the audit plan. |
| A. | Accounting policies |
| B. | Audit policies |
| C. | Accounting and Audit policies |
| D. | Management policies |
| Answer» D. Management policies | |
| 299. |
Income chargeable under the head ‘Profits and Gains from Business or Profession’is covered under _______________. |
| A. | Section 23 |
| B. | Section 24 |
| C. | Section 28 |
| D. | Section 27 |
| Answer» D. Section 27 | |
| 300. |
There are certain specified financial transactions in which quoting of PAN is mandatory. If a person intending to enter into such transaction does not hold PAN then, he has to furnish; |
| A. | Form 60 |
| B. | Form 49A |
| C. | Form 49C |
| D. | Form 49AA |
| Answer» B. Form 49A | |