McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 101. |
In case the directions fail to appoint first auditor (s), the shareholders shall appoint them at…..by passing a resolution |
| A. | a general meeting. |
| B. | first annual general meeting. |
| C. | statutory meeting. |
| D. | annual general meeting. |
| Answer» A. a general meeting. | |
| 102. |
Life Insurance Corporation of India holds twenty five percent of subscribed capital of XYZ Ltd. The appointment of statutory auditor in XYZ Ltd. Would be by………………….. |
| A. | ordinary resolution. |
| B. | special resolution. |
| C. | (a) or (b). |
| D. | none of the above. |
| Answer» B. special resolution. | |
| 103. |
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» B. If a company fails to appoint an auditor at a general meeting. | |
| 104. |
The auditor’s _________ safeguards the auditor’s ability to form an audit opinion without being affected by any influences. |
| A. | Objectivity. |
| B. | Independence. |
| C. | Confidentiality. |
| D. | Integrity. |
| Answer» D. Integrity. | |
| 105. |
Types of EDP Accounting System: |
| A. | Batch Processing . |
| B. | Real – time Processing system. |
| C. | Only A |
| D. | Both A and B . |
| Answer» D. Both A and B . | |
| 106. |
Full form od CAAT . |
| A. | Computer Application Audit Techniques. |
| B. | Computer Audit Assisted Techniques. |
| C. | Computer Audit Application Techniques. |
| D. | Computer Assisted Audit Techniques. |
| Answer» D. Computer Assisted Audit Techniques. | |
| 107. |
Problems encountered in an EDP Enviroment: |
| A. | Absence of voucher. |
| B. | Computer virus. |
| C. | Coding Problem. |
| D. | All of the above. |
| Answer» D. All of the above. | |
| 108. |
What is EDP? |
| A. | Emergency Data Program |
| B. | Electronic Data parity |
| C. | Electronic Data Processing |
| D. | Emerging Data Processing. |
| Answer» C. Electronic Data Processing | |
| 109. |
Full form of GAS: |
| A. | General Audit System |
| B. | Generalized Audit Software |
| C. | Generalized Audit System. |
| D. | General Assistant System. |
| Answer» B. Generalized Audit Software | |
| 110. |
Income Tax Act was passed in the year _________. |
| A. | 1947 |
| B. | 1950 |
| C. | 1961 |
| D. | 1991 |
| Answer» C. 1961 | |
| 111. |
Life Insurance Corporation of India is a _______________. |
| A. | AOP |
| B. | Firm |
| C. | Company |
| D. | Individual |
| Answer» C. Company | |
| 112. |
……………………. is an artificial person registered under Indian Companies Act 1956. |
| A. | Individual |
| B. | Company |
| C. | Firm |
| D. | Local Authority |
| Answer» B. Company | |
| 113. |
The first income tax act was introduced in the year |
| A. | 1918 |
| B. | 1861 |
| C. | 1860 |
| D. | 1886 |
| Answer» C. 1860 | |
| 114. |
The apex body of Income Tax Department. is |
| A. | Finance Ministry of Central Govt. |
| B. | Central Govt. of India. |
| C. | CBDT |
| D. | Dept. of Revenue |
| Answer» C. CBDT | |
| 115. |
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» D. All of the above | |
| 116. |
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» B. 1961 | |
| 117. |
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» B. 1st Sept '16 | |
| 118. |
According to Section 2(7) of Income Tax Act "Assessee" means a person |
| A. | By whom any tax or other sum of money is payable |
| B. | By whom any proceeding under the Act has been taken |
| C. | Who is deemed to be an assessee in default under any provision of this Act |
| D. | All of the above |
| Answer» D. All of the above | |
| 119. |
Amongst the following _________________ is empowered to levy tax on agricultural income. |
| A. | Central Government |
| B. | State Government |
| C. | Commissioner |
| D. | President |
| Answer» B. State Government | |
| 120. |
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» D. Individuals, HUF, Company, Firm, AOP or BOI, Local Authority, Every | |
| 121. |
XYZ LLP falls under which---------- category of person - |
| A. | Individual |
| B. | Partnership firm |
| C. | Company |
| D. | Association of person |
| Answer» B. Partnership firm | |
| 122. |
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» D. Income from exports | |
| 123. |
Income is divided in ___________ heads of Income. |
| A. | 4 |
| B. | 5 |
| C. | 6 |
| D. | 3 |
| Answer» B. 5 | |
| 124. |
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» A. Reimbursement of expenses | |
| 125. |
Which amongst the following is Artificial Juridical Person? |
| A. | Corporation |
| B. | Local Fund |
| C. | District Board |
| D. | None of these |
| Answer» A. Corporation | |
| 126. |
The Central Government has notified Income computation and disclosure standards for computing income under the head Profits and Gains of Business and Profession - . |
| A. | 2 |
| B. | 5 |
| C. | 8 |
| D. | 10 |
| Answer» D. 10 | |
| 127. |
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» D. Expressly disallowed | |
| 128. |
Contribution was made by PFI towards Credit Guarantee Fund Trust. Such expenditure shall be considered as: |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Deferred revenue expenditure |
| D. | Illegal expenditure |
| Answer» A. Revenue expenditure | |
| 129. |
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» C. Rs.10,00,000 | |
| 130. |
For an employee in receipt of hostel expenditure allowance for his three children, the maximum 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» B. Rs.7,200 | |
| 131. |
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» B. Rs. 48,000 | |
| 132. |
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» C. Rs. 84,000 | |
| 133. |
The first income tax act was introduced in the year |
| A. | 1918 |
| B. | 1861 |
| C. | 1860 |
| D. | 1886 |
| Answer» B. 1861 | |
| 134. |
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» A. Resident | |
| 135. |
Pension is _______________ under the salary head. |
| A. | Fully taxable |
| B. | Partially taxable |
| C. | Not taxable |
| D. | None of the above |
| Answer» B. Partially taxable | |
| 136. |
The salary, remuneration or compensation received by the partners is taxable under the head _______________. |
| A. | Income from Other Sources |
| B. | Income from Business |
| C. | Salary |
| D. | None of the above |
| Answer» C. Salary | |
| 137. |
Rent Free Accommodation given to an employee by the employer is a _________ |
| A. | Allowance |
| B. | Perquisite |
| C. | Profit in lieu of salary |
| D. | None of the above |
| Answer» A. Allowance | |
| 138. |
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» C. Totally exempt under section 10(19) | |
| 139. |
The house rent allowance (HRA) under the salary head of Income Tax Act is given by_____________. |
| A. | Section 10 |
| B. | Section 10(13A) |
| C. | Section11(13B) |
| D. | Section11 |
| Answer» B. Section 10(13A) | |
| 140. |
Children Education allowance is exempted for ______ child/ children. |
| A. | One |
| B. | Two |
| C. | Three |
| D. | Four |
| Answer» B. Two | |
| 141. |
Pension is _______________ under the salary head. |
| A. | Fully taxable |
| B. | Partially taxable |
| C. | Not taxable |
| D. | None of the above |
| Answer» A. Fully taxable | |
| 142. |
The salary, remuneration or compensation received by the partners is taxable under the head _______________. |
| A. | Income from Other Sources |
| B. | Income from Business |
| C. | Salary |
| D. | None of the above |
| Answer» B. Income from Business | |
| 143. |
The death-cum-retirement gratuity received by the Government Employee or employee of local authority is _______________. |
| A. | Partially exempted |
| B. | Fully exempted |
| C. | Half taxable |
| D. | None of the above |
| Answer» B. Fully exempted | |
| 144. |
Under Section 15 of Income Tax Act, the salary due in previous years and even if it is not received is _______________. |
| A. | Taxable |
| B. | Not taxable |
| C. | Partially taxable |
| D. | None of the above |
| Answer» B. Not taxable | |
| 145. |
Provident Fund Act was passed in the year ___________. |
| A. | 1932 |
| B. | 1956 |
| C. | 1925 |
| D. | 1922 |
| Answer» A. 1932 | |
| 146. |
Rent Free Accommodation given to an employee by the employer is a ____________. |
| A. | Allowance |
| B. | Perquisite |
| C. | Profit in lieu of salary |
| D. | None of the above |
| Answer» B. Perquisite | |
| 147. |
The Payment of Gratuity Act came into force in………….. |
| A. | 1973. |
| B. | 1980 |
| C. | 1991 |
| D. | 1972 |
| Answer» D. 1972 | |
| 148. |
The entertainment allowance is applicable to_______________. |
| A. | Private sector employees |
| B. | Public sector employees |
| C. | Government employees |
| D. | All of the above |
| Answer» C. Government employees | |
| 149. |
_______ is the rent fixed under Rent control Act. |
| A. | Municipal rental value |
| B. | Fair rental value |
| C. | Standard rent |
| D. | Real rent |
| Answer» C. Standard rent | |
| 150. |
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» C. Higher of Municipal Value & Fair Rent subject to maximum of Standard Rent | |
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