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.
| 401. |
In the case of a company in which not less than _______% of the subscribed share capital is held whether singly or in combination by certain special institutions and bodies, the appointment or re-appointment of auditors shall be made at each annual general meeting by a special resolution. |
| A. | 25% |
| B. | 30% |
| C. | 20% |
| D. | 15% |
| Answer» B. 30% | |
| 402. |
Expected Rent can be determined in the following way |
| A. | Higher of Municipal Value & Fair Rent |
| B. | Lower of Municipal Value & Fair Rent |
| C. | Higher of Municipal Value & Fair Rent subject to maximum of Standard Rent |
| D. | Any of the above |
| Answer» D. Any of the above | |
| 403. |
The board of directors shall appoint first auditor of a company. |
| A. | With in one month of completion of capital subscription state of the company. |
| B. | With in one month of the promotion of the company. |
| C. | With in one month of the commencement of the business of the company. |
| D. | With in one month of incorporation of the company. |
| Answer» E. | |
| 404. |
Management audit means |
| A. | Audit undertaken on behalf of the management |
| B. | Evaluating performance of various management processes and functions |
| C. | Audit undertaken on behalf of Govt. to punish management |
| D. | Compulsory audit |
| Answer» C. Audit undertaken on behalf of Govt. to punish management | |
| 405. |
Amongst the following _________________ is empowered to levy tax on agricultural income. |
| A. | Central Government |
| B. | State Government |
| C. | Commissioner |
| D. | President |
| Answer» C. Commissioner | |
| 406. |
State Government pays commission of Rs.20, 000/- to one of its agent on sale ofLottery Tickets. |
| A. | TDS is required to be made @ 5% on any amount paid as commission for sale of lottery tickets |
| B. | TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 15,000/- |
| C. | TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 30,000/- |
| D. | TDS shall not be deducted as payment is made by State Government |
| Answer» C. TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 30,000/- | |
| 407. |
Internal control includes ________. |
| A. | Internal audit |
| B. | Internal check |
| C. | Both internal audit and internal check |
| D. | Internal check and external audit |
| Answer» D. Internal check and external audit | |
| 408. |
As per Section 2(e a), which of the following is an asset in case of an individual: |
| A. | Cash in hand up to Rs. 50,000 |
| B. | Shares |
| C. | Debentures or Bonds |
| D. | Motor car used for official purposes |
| Answer» E. | |
| 409. |
Which of the following is not included in taxable income - |
| A. | Reimbursement of expenses |
| B. | Cash gifts received from non-relatives |
| C. | Income from illegal activity |
| D. | Profit on sale of equity shares of unlisted company |
| Answer» B. Cash gifts received from non-relatives | |
| 410. |
For what minimum period should audit working papers be retained by audit firm? |
| A. | For the time period the entity remains a client of the audit firm. |
| B. | For a period of ten years |
| C. | For a period auditor opines them to be useful in servicing the client |
| D. | For the period the audit firm is in existence. |
| Answer» D. For the period the audit firm is in existence. | |
| 411. |
A company auditor can be removed before expiry of his term by |
| A. | Shareholders |
| B. | Board of Directors |
| C. | Central Government |
| D. | State Government |
| Answer» B. Board of Directors | |
| 412. |
Under the Head Income from House Property, the basis of charge is the______________ of property. |
| A. | Annual value |
| B. | Quarterly value |
| C. | Half-quarterly value |
| D. | None of the above |
| Answer» B. Quarterly value | |
| 413. |
Auditing begins where _____ends. |
| A. | Selling. |
| B. | Inventory valuation. |
| C. | Accounting. |
| D. | Purchases. |
| Answer» D. Purchases. | |
| 414. |
What is EDP? |
| A. | Emergency Data Program |
| B. | Electronic Data parity |
| C. | Electronic Data Processing |
| D. | Emerging Data Processing. |
| Answer» D. Emerging Data Processing. | |
| 415. |
Appropriateness means _______ of audit evidence. |
| A. | Quantity. |
| B. | Quality. |
| C. | Appropriateness. |
| D. | Sufficient. |
| Answer» C. Appropriateness. | |
| 416. |
Balance sheet audit is also known as ………… |
| A. | Continues audit |
| B. | Annual audit |
| C. | Internal audit |
| D. | Financial audit |
| Answer» E. | |
| 417. |
Director sitting fees will be Chargeable Under which head? |
| A. | Income from house property |
| B. | Income from other sources |
| C. | Income from PGBP |
| D. | Income from Capital gain |
| Answer» C. Income from PGBP | |
| 418. |
A special auditor is appointed by the |
| A. | Shareholders |
| B. | Board of Directors |
| C. | Central Government |
| D. | C & A – G |
| Answer» D. C & A – G | |
| 419. |
The notice under section 143(2) must be served within: |
| A. | 12 months from the date of filing of return |
| B. | 12 months from the due date of filing the return U/S 139(1) or from the date of filing of return of income |
| C. | 6 months from the end of the financial year in which the return was furnished |
| D. | 6 months from the end of month in which the return was furnished |
| Answer» D. 6 months from the end of month in which the return was furnished | |
| 420. |
franchise fee received by an assessee in tourism business, against special rights given to franchisees to undertake hotel business in assessee’s property is taxable under the head _____ |
| A. | Income from house property |
| B. | Income from PGBP |
| C. | Income from Capital gain |
| D. | Income from other sources |
| Answer» C. Income from Capital gain | |
| 421. |
The audit process is |
| A. | special application of the scientific method of inquiry. |
| B. | Regulated by the PICPA .c. |
| C. | The only service a CPA is allowed to perform by law. |
| D. | Performed only by CPAs |
| Answer» B. Regulated by the PICPA .c. | |
| 422. |
The term of the auditor ship of first auditor would be from the date of appointmenttill…………………………. |
| A. | the conclusion of statutory meeting. |
| B. | the conclusion of first annual general meeting. |
| C. | the conclusion of next annual general meeting. |
| D. | the date of removal. |
| Answer» C. the conclusion of next annual general meeting. | |
| 423. |
Which of the following statements is, generally, correct about thereliability of audit evidence? |
| A. | To be reliable, evidence should conclusive rather than persuasive |
| B. | Effective internal control system provides reliable audit evidence |
| C. | Evidence obtained from outside sources routed through the client |
| D. | All of the Above. |
| Answer» D. All of the Above. | |
| 424. |
Misappropriation of goods may be checked by |
| A. | Proper supervision over stock |
| B. | Checking of employees |
| C. | Punishment of employees |
| D. | None of the above |
| Answer» C. Punishment of employees | |
| 425. |
The Constitution of india empowers ____________________________________ to levy tax on income |
| A. | state government |
| B. | central government |
| C. | parliament |
| D. | finance minister |
| Answer» C. parliament | |
| 426. |
The income tax act extends to __________________________________________ of india |
| A. | states |
| B. | union territories |
| C. | citizens |
| D. | whole |
| Answer» E. | |
| 427. |
Residential has nothing to do with |
| A. | constitution |
| B. | citizenship |
| C. | censorship |
| D. | change |
| Answer» C. censorship | |
| 428. |
Residential Status of an individual depends on the stay of assesses in india during the |
| A. | calender year |
| B. | accounting year |
| C. | asseseement year |
| D. | previous year |
| Answer» E. | |
| 429. |
An Company is always resident in india |
| A. | industrial |
| B. | individual |
| C. | indian |
| D. | investment |
| Answer» D. investment | |
| 430. |
A person by whom any tax is payable under income tax act 1961 is called as |
| A. | individual |
| B. | tax receiver |
| C. | assessee |
| D. | none of the above |
| Answer» D. none of the above | |
| 431. |
The Financial year in which the income is earned is called as the |
| A. | assessment year |
| B. | present year |
| C. | previous year |
| D. | current year |
| Answer» D. current year | |
| 432. |
Income tax act extends to |
| A. | whole of india |
| B. | whole of india except jammu & kashmir |
| C. | india & sri lanka |
| D. | none of these |
| Answer» B. whole of india except jammu & kashmir | |
| 433. |
Shivaji University is assessable under the income tax act as |
| A. | a individual |
| B. | an artificial juridical person |
| C. | a local authority |
| D. | none of these |
| Answer» C. a local authority | |
| 434. |
A firm is regarded as a unit of assessment as per ______________________________ |
| A. | income tax act |
| B. | partnership act |
| C. | companies act |
| D. | finance act |
| Answer» B. partnership act | |
| 435. |
____________________________ is chargeable u/s 45 |
| A. | capital gains |
| B. | profit and gains |
| C. | dividend |
| D. | voluntary contribution |
| Answer» B. profit and gains | |