MCQOPTIONS
Saved Bookmarks
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.
| 351. |
The liabilities of an auditor can be ________. |
| A. | Civil |
| B. | Criminal |
| C. | Civil & Criminal |
| D. | Financial |
| Answer» D. Financial | |
| 352. |
Internal auditor of a company must be _______. |
| A. | Cost accountant |
| B. | Chartered accountant |
| C. | ICWA |
| D. | Need not possess any professional qualification |
| Answer» E. | |
| 353. |
Propriety audit refers to |
| A. | Verification of accounts |
| B. | Examination accounts of propriety concerns |
| C. | Enquiry against justification and necessity of expresses |
| D. | Audit of Govt. companies |
| Answer» D. Audit of Govt. companies | |
| 354. |
Audit programme provides instructions to the audit staff and reduces scope for |
| A. | Understanding |
| B. | Misunderstanding |
| C. | Negligence |
| D. | Liabilities |
| Answer» D. Liabilities | |
| 355. |
Auditor should see that amount received for premium on issue of shares should beshown in ______ |
| A. | Subscribed capital |
| B. | Capital Reserve Account |
| C. | Share Premium account |
| D. | Paid- up capital account |
| Answer» D. Paid- up capital account | |
| 356. |
-------------------- audit is not a statuary requirement |
| A. | Management |
| B. | Financial |
| C. | Tax Audit |
| D. | none |
| Answer» B. Financial | |
| 357. |
Tax refund has to be claimed within : |
| A. | Five years |
| B. | Same year |
| C. | One year |
| D. | Next year |
| Answer» D. Next year | |
| 358. |
Deduction from annual value is allowed under ______________. |
| A. | Section 24 |
| B. | Section 25 |
| C. | Section 27 |
| D. | Section 28 |
| Answer» B. Section 25 | |
| 359. |
ITR -5 is related to : |
| A. | For Individuals |
| B. | For HUF. |
| C. | For Firms, AOPs And BOIs. |
| D. | For Companies. |
| Answer» D. For Companies. | |
| 360. |
Types of EDP Accounting System: |
| A. | Batch Processing . |
| B. | Real – time Processing system. |
| C. | Only A |
| D. | Both A and B . |
| Answer» E. | |
| 361. |
While framing an audit plan auditor should ascertain his _____ cast by variouslegislations on him. |
| A. | Limitations |
| B. | Duties and obligations |
| C. | Rights and powers |
| D. | Term of appointment & responsibilities |
| Answer» E. | |
| 362. |
Effective internal check system reduces |
| A. | The liability of auditor |
| B. | Work of auditor |
| C. | Responsibilities of an auditor |
| D. | None of the above |
| Answer» C. Responsibilities of an auditor | |
| 363. |
A person includes: |
| A. | Only Individual |
| B. | Only Individual and HUF |
| C. | Individuals, HUF, Firm, Company only |
| D. | Individuals, HUF, Company, Firm, AOP or BOI, Local Authority, Every |
| Answer» E. | |
| 364. |
The first income tax act was introduced in the year |
| A. | 1918 |
| B. | 1861 |
| C. | 1860 |
| D. | 1886 |
| Answer» D. 1886 | |
| 365. |
…………. is the examination of all documentary evidence which are available tosupport the authenticity of transactions entered in the client’s records. |
| A. | Accounting |
| B. | Vouching |
| C. | Internal check |
| D. | None of the above |
| Answer» C. Internal check | |
| 366. |
Calculate the Gross Annual value from the following details:Municipal Value - Rs. 45,000 Fair rental value - Rs. 50,000 Standard rent - Rs. 48,000 Actual Rent - Rs. 42,000 |
| A. | Rs. 50,000 |
| B. | Rs. 48,000 |
| C. | Rs. 45,000 |
| D. | Rs. 42,000 |
| Answer» C. Rs. 45,000 | |
| 367. |
In case the directions fail to appoint first auditor (s), the shareholders shallappoint them at…..by passing a resolution |
| A. | a general meeting. |
| B. | first annual general meeting. |
| C. | statutory meeting. |
| D. | annual general meeting. |
| Answer» B. first annual general meeting. | |
| 368. |
The auditor’s _________ safeguards the auditor’s ability to form an audit opinionwithout being affected by any influences. |
| A. | Objectivity. |
| B. | Independence. |
| C. | Confidentiality. |
| D. | Integrity. |
| Answer» E. | |
| 369. |
Income received or deemed to be received in India (whether accrued in or outside India) is taxable in case of |
| A. | Resident |
| B. | Not Ordinarily Resident |
| C. | Non Resident |
| D. | All of the above |
| Answer» B. Not Ordinarily Resident | |
| 370. |
Auditing standards differ from audit procedures in that procedures relate to |
| A. | Audit assumptions |
| B. | acts to be performed |
| C. | quality criterion |
| D. | methods of work. |
| Answer» C. quality criterion | |
| 371. |
Civil liability of an auditor implies liability for |
| A. | Misappropriation of cash |
| B. | Misappropriation of goods |
| C. | Fraud |
| D. | Misfeasance |
| Answer» E. | |
| 372. |
In the case of companies, income tax return is signed by: |
| A. | Manager |
| B. | Board of Directors. |
| C. | 3.General Manager. |
| D. | Managing Director |
| Answer» E. | |
| 373. |
An appeal to the Commissioner of Income-tax (Appeals) shall be filed in Form No.________. |
| A. | 35 |
| B. | 36 |
| C. | 34C |
| D. | 35B |
| Answer» B. 36 | |
| 374. |
………………… is the specific guidelines and directions for efficient and effectivecompletion of the audit work on timely and daily basis, so as to minimise audit risk. |
| A. | Audit planning |
| B. | Audit report |
| C. | Audit programme |
| D. | Audit certificate |
| Answer» B. Audit report | |
| 375. |
Sec.143 of Companies Act 20913 deals with _____ |
| A. | Powers and rights of an auditor |
| B. | Removal of an auditor |
| C. | Appointment of an auditor |
| D. | Remuneration of an auditor |
| Answer» B. Removal of an auditor | |
| 376. |
Income is divided in ___________ heads of Income. |
| A. | 4 |
| B. | 5 |
| C. | 6 |
| D. | 3 |
| Answer» C. 6 | |
| 377. |
What is the main objectives of Auditing? |
| A. | To give an opinion as to the truth and fairness of Financial statement. |
| B. | To finds errors. |
| C. | To help taxation departments. |
| D. | To help customers. |
| Answer» B. To finds errors. | |
| 378. |
Income by way of royalty in respect of a patent developed and registered in India inrespect of person who is resident in India is chargeable to tax at rate of - |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 30% |
| Answer» E. | |
| 379. |
Family pension received by a widow of a member of the armed forces where the death of the member has occurred in the course of the operational duties, is……………….. |
| A. | Exempt up to Rs.3,00,000 |
| B. | Exempt up to Rs. 3,50,000 |
| C. | Totally exempt under section 10(19) |
| D. | Totally chargeable to tax |
| Answer» D. Totally chargeable to tax | |
| 380. |
Which of the following is not a kind of audit? |
| A. | Statutory and private audit |
| B. | Government and continuous audit |
| C. | Final, Interim, management audit |
| D. | None of the above |
| Answer» E. | |
| 381. |
Full form of TDS is : |
| A. | Tax Deducted at source. |
| B. | Tax sources. |
| C. | Tax Challan |
| D. | Tax Deposited at source |
| Answer» B. Tax sources. | |
| 382. |
Audit programme helps in fixing the ______for the work done among the audit staffas work done may be traced back to the individual staff members. |
| A. | Remuneration |
| B. | Liabilities |
| C. | Negligence |
| D. | Responsibility |
| Answer» E. | |
| 383. |
……………….is the medium through which an auditor expresses his opinion on thestate of affairs of the client’s business. |
| A. | Audit report |
| B. | Audit certificate |
| C. | Audit programme |
| D. | Audit planning |
| Answer» B. Audit certificate | |
| 384. |
In the absence of the individual assesses, return of income can be signed by………………… |
| A. | Legal Heir |
| B. | Spouse. |
| C. | Any Person. |
| D. | Authorized person |
| Answer» E. | |
| 385. |
For an employee in receipt of hostel expenditure allowance for his three children, themaximum annual allowance exempt under section 10(14) is |
| A. | Rs.10, 800 |
| B. | Rs.7,200 |
| C. | Rs.9,600 |
| D. | Rs.3,600 |
| Answer» C. Rs.9,600 | |
| 386. |
If an auditor is not appointed at annual general meeting, he is appointed by the |
| A. | The Central Government |
| B. | Board of Directors |
| C. | Shareholders |
| D. | Company Law board |
| Answer» B. Board of Directors | |
| 387. |
Challan No……………. is used by all categories of tax payers for payment of incometax. |
| A. | Challan no.280 |
| B. | Challan no.282 |
| C. | Challan no.281 |
| D. | Challan no.281(A) |
| Answer» B. Challan no.282 | |
| 388. |
A continuous audit is specially needed for |
| A. | Any trading concern |
| B. | Smaller concerns |
| C. | Banking companies |
| D. | Any manufacturing companies |
| Answer» D. Any manufacturing companies | |
| 389. |
Pension is _______________ under the salary head. |
| A. | Fully taxable |
| B. | Partially taxable |
| C. | Not taxable |
| D. | None of the above |
| Answer» B. Partially taxable | |
| 390. |
Which of the following persons is qualified to be a company auditor? |
| A. | An employee of the company |
| B. | A body corporate |
| C. | A person who is indebted to the company for an amount exceeding Rs. 1000 |
| D. | A practicing-chartered accountant |
| Answer» E. | |
| 391. |
Which amongst the following is Artificial Juridical Person? |
| A. | Corporation |
| B. | Local Fund |
| C. | District Board |
| D. | None of these |
| Answer» B. Local Fund | |
| 392. |
Mr. DS during the previous year 2018-19 made a payment outside India to a nonresident on which TDS was not paid upto time allowed under section 200. However,such TDS was deducted and paid on 30th September 2019. When shall deduction of this expenditure be allowed to assessee? |
| A. | Previous Year 2018-19 |
| B. | Previous Year 2019-20 |
| C. | Previous Year 2017-18 |
| D. | Not allowed deduction |
| Answer» B. Previous Year 2019-20 | |
| 393. |
The Income Tax Act, which is still in force in India, was enforced in |
| A. | 1922 |
| B. | 1961 |
| C. | 1860 |
| D. | None of the above |
| Answer» C. 1860 | |
| 394. |
The Auditors Working Papers are divided into two parts |
| A. | Permanent audit file and current audit file |
| B. | Permanent audit file and temporary audit file |
| C. | temporary audit file and current audit file |
| D. | current audit file and transitory audit file |
| Answer» B. Permanent audit file and temporary audit file | |
| 395. |
Salary of S (Rs. 40,000 per month) becomes due on the last day of the month but is paid on 7th of next month. Also, salary of April, 2014 and May, 2014 is received in advance in March, 2014. What will be his gross income for Assessment Year 2014-15? |
| A. | Rs. 5,60,000 |
| B. | Rs. 4,80,000 |
| C. | Rs. 4,40,000 |
| D. | Rs. 5,20,000 |
| Answer» B. Rs. 4,80,000 | |
| 396. |
Working papers helps in proper _______ of audit. |
| A. | Planning |
| B. | Performance |
| C. | Planning and performance |
| D. | Execution |
| Answer» D. Execution | |
| 397. |
Final audit implies |
| A. | Finally checking of accounts to reveal frauds |
| B. | Audit for submitting report immediately at the end of the year |
| C. | Audit of banking companies |
| D. | Audit of accounts at the end of the year |
| Answer» E. | |
| 398. |
Which Audit is conducted to check the cost records of the company? |
| A. | Financial Audit. |
| B. | Operational Audit. |
| C. | Management Audit. |
| D. | Cost Audit |
| Answer» E. | |
| 399. |
Taxpayers opting for presumptive taxation scheme of Section 44AD are required topay up to of advance tax by 15th June? |
| A. | 15% |
| B. | 45% |
| C. | 75% |
| D. | Nil |
| Answer» B. 45% | |
| 400. |
Internal check is suitable for _______. |
| A. | Larger concerns |
| B. | Smaller concerns |
| C. | Petty-shop keepers |
| D. | None of the above |
| Answer» B. Smaller concerns | |