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Company Law
1. A Private Company and Public Company must have a minimum paid-up capital of
(a) Rs. 1 lakh and Rs. 2 lakhs respectively
(b) Rs. 3 Lakhs and Rs.5 lakhs respectively
(c) Rs. 2 lakhs and Rs.3 lakhs respectively
(d) such amount as may be prescribed
2. A company shall be a small company only if its paid-up share capital does not exceed
________and its turnover (as per profit and loss account for the immediately preceeding FY)
does not exceed________
(a) Rs.50 lakh; Rs.2 crore
(b) Rs.10 crore; Rs.100 crore
(c) Rs.50 lakh; Rs.10 crore
(d) Rs. 10 crore; Rs.50 crore
3.Contracts which are entered into by agents or trustees on behalf of a prospective company
before it has come into existence are called:
(a) Provisional contracts
(b) Pre-incorporation contracts
(c) Both provisional and pre-incorporation contracts
(d) None of the above
4. An OPC cannot get itself converted voluntarily into any other kind of company unless a period
of_________has expired from the date of incorporation of OPC.
(a) 1 year
(b) 2 years
(c) 3 years
(d) 5 years
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5. The memorandum of OPC shall state the name of any other person who shall become the
member of OPC in case of ______of the subscriber to memorandum.
(a) Death
(b) Incapacity to contract
(c) Death or incapacity to contract
(d) Death of insolvency
6. A company licenced under section 8 may alter the provisions contained in its memorandum
or articles only after obtaining the previous approval of________
(a) The Central Government
(b) The Tribunal
(c) The Court
(d) None of these
7. In case of OPC, the words ‘One Person Company’ shall be mentioned________

(a) In brackets
(b) Below the name
(c) Both (a) and (b)
(d) None of these
8. A change in the name of a company requires_________

(a) An ordinary resolution and approval of the Central Government
(b) A special resolution and approval of the Central Government
(c) A special resolution and approval of the Tribunal
(d) An ordinary resolution and approval of the Tribunal
9. A company shall not allot or transfer its shares to__________

(a) Its parent company
(b) Its subsidiary company
(c) Its associate company
(d) Joint venture company
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10. As per the doctrine of __________, outsiders dealing with the company are entitled to
assume that as far as internal proceedings of the company are concerned, everything has been
done regularly.
(a) Ultra vires
(b) Constructive notice
(c) Indoor management
(d) None of these
11. A promoter is _________of the company.

(a) An agent
(b) A trustee
(d) None of these
12. The underwriting commission on shares must not exceed:

(a) 2.0 present of the issued price of shares
(b) 2.5 present of the issued price of shares
(c) 5.0 present of the issued price of shares
(d) 5.5 present of the issued prices of shares.
13. ___________means a memorandum containing such salient features of a prospectus as

may be specified by SEBI by making regulation in this behalf.
(a) Deemed prospectus
(b) Prospectus
(c) Information memorandum
(d) Abridged prospectus
14. Any notice, circular, advertisement or other document inviting offers from______for the
subscription or purchase of any securities of _______shall be a prospectus.
(a) The member; a company
(b) The member; a body corporate
(c) The public; a company
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(d) The public; a body corporate
15. A statement can be included as an expert’s statements in the prospectus only if the person
making the statement is not, and has not been, engaged or interested in_______of the
company.
(a) The formation of promotion
(b) management
(c) Either (a) or (b) or both
(d) Membership
16. The shelf prospectus shall indicate a period not exceeding __________as the period of
validity of such prospectus.
(a) 3 months
(b) 6 months
(c) 1 year
(d) 2 years
17. The application money on every security shall not be less than_______of the nominal
amount of the security.
(a) 2%
(b) 2.5%
(c) 5%
(d) 10%
18. A company can issue Global Depository Receipts only if it is authorised by________
(a) An ordinary resolution
(b) A special resolution
(c) A unanimous resolution
(d) None of these
19. A company making private placement shall issue_______

(a) Private placement offer-cum-application
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(b) Prospectus
(c) Abridged prospectus
(d) Red herring prospectus
20. A company making private placement shall allot the securities within_______of receiving the
application money for the securities.
(a) 30 days
(b) 45 days
(c) 60 days
(d) 90 days
21. Share Certificates are to be issued by a company within

(a) Two months after allotment
(b) One month after allotment
(c) Six month after allotment
(d) Three months after allotment
22. Sweat equity shares can be issued by a company only to _______

(a) Directors of the company
(b) Employees of the company
(c) Either (a) or (b) or both
(d) None
23.A company may issue equity shares with differential rights as to dividend, voting or
otherwise, only if it is authorised by __________
(a) The Central Government
(b) The Court
(c) The Tribunal
(d) Its articles
24. A share certificate is a _____of the fact that the person named therein is the owner of such
number of shares as are specified therein.
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(a) Conclusive
(b) Prima facie evidence
(c) Persuasive evidence
(d) Circumstantial evidence
25. The rights attached to the shares of any class may be varied with the consent in writing of
the holders of not less than_______ of the issued shares of that class.
(a) One-half
(b) One-third
(c) Two-third
(d) Three Fourth
26. The Securities Premium Account cannot be used for__________

(a) Writing off the preliminary expenses of the company
(b) Issuing fully paid bonus shares to the members
(c) Declaring dividend
(d) Writing off the discount allowed on issue of shares or debentures
27. Unless a company is engaged in infrastructure projects, it cannot issue preference shares
which are redeemable after _________
(a) 10 years
(b) 15 years
(c) 20 years
(d) 30 years
28. In case of any allotment of debentures, the share certificate shall be delivered by the
company within_________
(a) 3 months of receipt of application
(b) 3 months of allotment
(c) 6 months of receipt of application
(d) 6 months of allotment
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29. A company may alter the capital clause of memorandum by___________

(a) Passing an ordinary resolution
(b) Passing a special resolution
(c) Passing an ordinary resolution and obtaining approval of the Central Government
(d) Passing a special resolution and obtaining approval of the Central Government
30. Bonus shares may be issued out of ___________

(a) The free reserves
(b) The Securities Premium Account
(c) The Capital Redemption Reserve Account
(d) Any of these
31. Where the buy-back is authorised by a special resolution, it shall not

exceed______of_____________
(a) 25%; Aggregate of paid-up capital and free reserves
(b) 25%;total paid up equity capital
(c) 25%; aggregate of paid-up equity capital and free reserves
(d) 10%; aggregate of paid-up equity capital and free reserves
32. The ratio of debt (secured as well as unsecured debt) owed by the company must not be
more than_______the aggregate of paid up capital and free reserves_______the buy-back.
(a) Twice; before
(b) Twice; after
(c) Thrice; before
(d) Thrice;after
33. __________is required to be passed, if a company intends to accept deposits from its
members.
(a) An ordinary resolution
(b) A special resolution
(c) A unanimous resolution
(d) Resolution by circulation
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34. If a company intends to accept deposits from its members, it shall issue a circular to the
members. The circular shall be filed by the company with the Registrar, at least________prior to
the issue of the circular to the members.
(a) 7 days
(b) 15 days
(c) 21 days
(d) 30 days
35. The amount of deposits outstanding together with the amount of deposits proposed to be
accepted shall not exceed _______of the aggregate of the paid-up share capital, free reserves
and securities premium account of the company.
a. 20%
b. 25%
c. 35%
d. 50%
36. A company shall be liable to pay a penal rate of interest of ________per annum for the
overdue period in case of deposits whether secured or unsecured , matured and claimed but
remaining unpaid.
(a) 12 %
(b) 15%
(c) 18 %
(d) 24%
37. A company may accept deposits from person other than its members, only if it is a public
company and the net worth of the company is _______or more, ________turnover of the
company is ________or more.
(a) Rs. 100 crore; or ; Rs. 500 crore
(b) Rs. 1,000 crore; or; Rs. 5,000 crore
(c) Rs. 100 crore; and; Rs. 500 crore
(d) Rs. 1,000 crore; and; Rs. 5,000 crore
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38. The term ‘charge’ is defined as an interest or lien created on the property or assets of a
company or any of its_______or both as security and includes a_______
(a) Intellectual property rights; mortgage
(b) Undertakings; mortgage
(c) Undertakings;; hypothecation
(d) Intellectual property rights; pledge
39. Where a company created a charge on any of its assets, it shall be the duty of the company
to register such charge with the Registrar within________of its creation.
(a) 15 days
(b) 30 days
(c) 45 days
(d) 60 days
40. Where the particulars of modification of charge is registered, the Registrar shall issue a
certificate of modification of charge in Form No.______
(a) CHG-1
(b) CHG-2
(c) CHG-3
(d) CHG-4
41. If the property charged_________, the Registrar may record the satisfaction of charge in the
register of charges maintained by him notwithstanding the fact that no intimation of satisfaction
of charge has been given to him by the company.
(a) Has been released from charge
(b) Has ceased to be the property of the company
(c) Either (a) or (b)
(d) None of these
42. Every company shall keep as its registered office a register of charges in Form
No.________
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(a) CHG-7
(b) CHG-8
(c) CHG-9
(d) CHG-10
43. If there is omission or misstatement of any entry required to be entered in the register of
charges and ________is satisfied that it was accidental or due to inadvertence or due to some
other sufficient cause, or it is just and equitable to grant relief, it may make an order for
rectification of register of charges.
(a) The Tribunal
(b) The Central Government
(c) The Court
(d) The Registrar
44. A floating charge crystallizes into a fixed charge if_________

(a) The company is ordered to be wound up
(b) The company ceases to carry on business
(c) A receiver is appointed
(d) Any of these
45. Quorum for a General meeting of a public company is

(a) 5 members present in person or by proxy.
(b) 3 members personally present as required by the Articles of Association of the company
(c) 5 members personally present
(d) 2 members personally present
46. The gap between two Annual General Meetings must not be more than
a. 12 months
b. 15 months
c. 18 months
d. 15 months as may be extended by Registrar of Companies to 18 months
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47. Unless the Articles provide for a large number, the quorum for a general meeting for a public
limited company is
(a) ⅓ rd of the members
(b) 5 members personally present
(c) 2 members
(d) 7 members
48. An index of members is not required to be maintained by a company if its number of

members is less than-
(a) 20
(b) 50
(c) 70
(d) 80
49. First AGM is to be held within________of close of___________

a. 6 months; first financial year
b. 9 months; first financial year
c. 6 months; first calendar year
d. 9 months; first calendar year
50. The Registrar may, for any special reason, extend the time for holding______by any period
not exceeding________
(a) The first AGM; 3 months
(b) Any AGM other than the first AGM; 3 months
(c) The first AGM; 6 months
(d) Any AGM other than the first AGM; 6 months
51. AGM shall be called during business hours, i.e, between________

a. 9 am and 5 pm
b. 9 am and 6 pm
c. 10 am and 5 pm
d. 10 am and 6 pm
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52. Where the Tribunal makes an order calling an AGM of a company, it_____direct that 1
member_______shall be the quorum.
(a) Shall; present in person or proxy
(b) May; present in person or proxy
(c) Shall; present in person
(d) May; present in person
53. On receipt of a valid requisition, the Board shall within ________proceed to call an EGM to
be held not later than__________from the date of deposit of requisition.
(a) 7 days; 21 days
(b) 14 days; 30 days
(c) 14 days; 45 days
(d) 21 days; 45 days
54. Where a notice of general meeting is sent by post, it shall be deemed to be served at the
expiration of ________after the letter containing the same is posted.
a. 24 hours
b. 48 hours
c. 72 hours
d. 96 hours
55. The company shall provide an advance opportunity at least______to the members to
register their e-mail addresses and to update their e-mail addresses.
(a) Once in a financial year
(b) Twice in a financial year
(c) Thrice in a financial year
(d) Once in every quarter
56. In case the number of members as on the date of meeting is_______the quorum shall
be________members personally present.
(a) More than 1,000 but upto 5,000; 30
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(b) More than 5,000;50

(c) Upto 1,000; 7
(d) None of these
57. If the quorum is not present within half-an-hour from the time fixed for holding an
extraordinary general meeting called by the requisitionists under section 100, then_________
(a) The meeting shall adjourn to such day, time and place as may be determined by the Board
(b) The meeting shall adjourn to same day, time and place in the next week
(c) The members present shall be the quorum
(d) The meeting shall stand cancelled
58. A person can act as proxy on behalf of members not exceeding_______

a. 20
b. 25
c. 50
d. 100
59. Any member is entitled to inspect the proxies deposited with the company only
if______notice is given to the company
(a) 1 day’s
(b) 2 day’s
(3) 3 day’s
(d) 7 day’s
60. The facility for remote e-voting shall remain open for not less than____and shall close
at_______on the date preceding the date of general meeting.
a. 2 days; 5 pm
b. 2 days; 6 pm
c. 3 days; 5 pm
d. 3 days; 6 pm
61. ________are not required to transact any business through postal ballot.
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(a) one person companies

(b) Companies having members upto 200
(d) Unlisted companies
62. The scrutinizer shall submit his report as soon as possible after the last date of receipt of
postal ballots but not later than ______thereof.
(a) 3 days
(b) 5 days
(c) 7 days
(d) 14 days
63. In case of voting by postal ballot, the assent or dissent received after______from the date of
issue of notice shall be treated as if reply from the member has not been received.
(a) 7 days
(b) 15 days
(c) 30 days
(d) 45 days
64. A resolution passed at an adjourned meeting shall be treated to have been passed on the
date__________
(a) of original general meeting
(b) on which it was in fact passed
(c) Either (a) or (b)
(d) Either (a) or (b), as per the articles
65. No matter shall be included in the minutes, if the chairman is of the opinion that it is
_________
(a) Defamatory of any person
(b) Irrelevant or immaterial
(c) Detrimental to the interests of the company
(d) Any of these
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66. The minutes books of general meetings shall be preserved_________

(a) For a period of 4 years
(b) For a period of 6 years
(c) For a period of 8 years
(d) Permanently
67. Inspection of minutes book of general meetings can be made during business hours, subject
to reasonable restrictions through the articles or a resolution passed in a general meeting, so
that at least________in each business day are allowed for inspection.
(a) 1 hour
(b) 2 hours
(c) 3 hours
(d) 4 hours
68. In case of an OPC, __________shall be deemed to be the date of the meeting.

a. The date of despatch of notice of the general meeting
b. The date of signing the minutes-book by the member
c. The date of conclusion of the general meeting
d. The date of commencement of the general meeting
69. Dividend can be declared out of

a. Capital Reserve
b. Revaluation Reserve
c. Debenture Redemption Reserve
d. Earlier year’s reserve brought forward.
70. A company shall not declare any dividend on________if it has failed to comply with the
provisions of section 73 or section 74.
(a) Equity shares
(b) Preference shares
(c) Any shares, whether equity or preference
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(d) None of these
71. The amount of the dividend shall be deposited by the company in ______in a separate
account with _______of declaration of such dividend.
(a) A nationalised bank; 5 days
(b) A scheduled bank; 5 days
(c) State bank of India; 7 days
(d) A nationalised bank; 7 days
72. All such shares in respect of which dividend has not been paid or claimed for_____shall be
transferred by the company in the name of Investor Education and Protection Fund.
(a) Any 7 years
(b) 7 consecutive years
(c) Any 5 years
(d) 5 consecutive years
73. Where a transfer deed has been delivered to the company for registration, but the transfer of
shares has not yet been registered by the company, any offer of right shares or bonus shares
made by the company______
a. Shall belong to the transferor
b. Shall belong to the transferee
c. Shall remain pending
d. Shall be transferred to the fund
74. Dividend (other than interim dividend) is declared by_________.

a. The Board
b. The members
c. Either (a) or (b)
d. Both (a) and (b)
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75. Every company shall preserve in good order the books of account together with the relevant
vouchers. The time period of preservation shall be not less than_______financial years
immediately preceding the relevant financial years.
(a) 5
(b) 7
(c) 8
(d) 10
76. The financial statements shall be in the form or forms as may be provided for different class
or classes of companies in
(a) I
(b) II
(c) III
(d) IV
77. If any default is made in complying with the provisions relating to financial statements, all
such person who are responsible for ensuring such compliance shall be liable to imprisonment
upto_______or fine which shall not be less than Rs. 50,000 but which may extend upto
Rs.5,00,000 but which may extend upto Rs.5,00,000 or both.
(a) 1 year; Rs. 50,000; Rs. 5 lakh
(b) 1 year; Rs. 25,000; Rs. 2.5 lakh
(c) 6 months; Rs.25,000; Rs. 5 lakh
(d) 6 months; Rs. 50,000; Rs. 5 lakh
78. Under section 131, the revised financial statements or the Revised Board’s Report shall not
be prepared more than
(a) Once in a financial year
(b) Twice in a financial year
(c) Once in every 3 financial years
(d) Once in every 5 financial years
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79. Board’s Report shall contain explanation or comments by the Board on every qualification,
reservation or adverse remark or disclaimer made in the_________
(a) Audit report
(b) Secretarial audit report
(d) Report of internal auditor
80. The directors’ responsibility statement shall disclose as to whether the directors had taken
proper and sufficient care for ________
(a) Maintenance of adequate accounting records
(b) Safeguarding the assets of the company
(c) Preventing and detecting fraud and other irregularities
(d) All of these
81. In the case of ________, the Board’s Report shall contain the prescribed information and
details with respect to conservation of energy, technology absorption, foreign exchange
earnings and outgo.
(a) A listed company
(b) Prescribed classes of companies
(d) Every company
82. The provisions relating to corporate social responsibility apply to a company (including a
foreign company( if it has_______in the immediately preceding financial year.
(a) Net worth of Rs. 100 crore or more
(b) Turnover of Rs. 500 crore or more
(c) Net profit of Rs. 50 crore or more
(d) None of these
83. The Board shall ensure that the company spends in every financial years, at least_____of
the average net profits of the company made durings the 3 immediately preceding financial
years, in pursuance of its CSR Policy.
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(a) 1%
(b) 2%
(c) 3%
(d) 5%
84. ______shall place its financial statements and other documents on its website.
(a) Every listed company
(b) Every public company
(c) Every company
(d) Every public company having net worth of more than Rs. 1 crore and turnover of more than
Rs. 10 crore
85. Every company shall allow____to inspect the financial statement and other documents at its
registered office during business hours.
(a) Every member
(b) Every debenture trustee
(d) None of these
86. The financial statement, Consolidated Financial statement, if any, auditor’s Report and all
the documents which are required to be annexed or attached to the Financial statement shall be
filed with the Registrar within ______of the date of AGM.
(a) 7 days
(b) 14 days
(c) 21 days
(d) 30 days
87. The provisions relating to internal audit shall apply to every unlisted public company having
turnover of_______or more during the preceding financial year.
(a) Rs. 25 crore
(b) Rs. 50 crore
(c) Rs. 100 crore
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(d) Rs. 200 crore
88. The internal auditor shall be_______

(a) A chartered accountant
(b) A cost accountant
(c) Any other professional as may be decided by the Board
(d) Any of these
89. There are_______parties in a contract of indemnity.

(a) 2
(b) 3
(c) Either 2 or 3
(d) None of these
90. The person in respect of whose default the guarantee is given is called as__________
a. Guarantor
b. Debtor
c. Principal debtor
d. Surety
91. A guarantee given by an audit to discharge a loan given to a minor is______

a. Valid
b. Void
c. Voidable
d. Not enforceable
92. The liability of surety arises__________

a. After the creditor files a suit against the principal debtor
b. After the creditor gives a notice to the principal debtor
c. Immediately on default by the principal debtor
d. None of these
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93. A surety has the right of indemnity and right of subrogation against__________
a. The principal debtor
b. The creditor
c. The co-sureties
d. All of these
94. The surety is entitled to claim from the principal debtor all the sums__________
a. Paid by him
b. Rightfully paid by him
c. Paid by him, with the consent of other co-sureties
d. None of these
95. Gratuitous bailment means a bailment_________

a. For the exclusive benefit of bailor
b. For the exclusive benefit of bailee
d. For the mutual benefit of bailor and bailee
96. _________means doing of any act which has the effect of putting the goods in the
possession of a person who agrees to hold them as a bailee for some other person, although
transfer of possession of goods does not actually take place.
(a) Physical delivery
(b) Symbolic delivery
(c) Constructive delivery
(d) None of these
97. Delivery of keys of a car to a friend is an example of ___________

a. Physical delivery
b. Symbolic delivery
c. Constructive delivery
d. None of these
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98. In case there are 2 or more joint owners of the goods, the bailee has to deliver them back to
_______in the absence of any agreement to the contrary.
(a) Any of the joint owners
(b) Such joint owner for which all the joint owners have consented
(c) All the joint owners acting collectively
(d) None of these
99. If the true owner does not pay to the finder of goods the expenses incurred by the finder of
goods for finding the true owner and preserving the goods, the finder of goods has the right
to______
(a) Sue the true owner
(b) Exercise particular lien
(d) None of these
100. Where a person pledges the goods in which he has only a limited interest, the pledge
is________
(a) Valid
(b) Voidable
(c) Valid to the extent of that interest
(d) None of the these
101. An agent is not liable to the principle if ________

a. He is a minor
b. He is of unsound mind
c. Either (a) or (b) or both
d. None of these
102. ________is a person employed by, and acting under the control of, the original agent in the
business of the agency.
(a) A substituted agent
(b) A sub agent
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(c) Mercantile agent

(d) Universal agent
103. Agency coupled with interest__________

(a) Cannot be terminated
(b) Cannot be terminated to the prejudice of such interest
(c) Can be terminated
(d) Can be terminated, if the Central Government so directs
104. It is the duty of the agent to protect and preserve the interest on behalf of the principal’s
representative in case of________
a. Death of the principal
b. Insolvency of the principal
c. Both (a) and (b)
d. None of these
105. In case of an accepted bill, the liability of drawer is_________

a. Primary and unconditional
b. Primary and conditional
c. Secondary and conditional
d. Secondary and unconditional
106. In case of a cheque, the liability of drawer is _________

a. Primary and unconditional
b. Primary and conditional
c. Secondary and conditional
d. Secondary and unconditional
107. The drawee of a bill of exchange, may accept it by signing on___________

(a) The face of the bill
(b) The face or back of the bill
(c) A slip of paper annexed to the bill
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(d) Any of these
108. A negotiable instrument payable to__________is an order instrument.

a. A particular person
b. A particular person or his order
c. The order of a particular person
d. All of these
109. Where the endorsement contains a direction to pay the amount mentioned in the
negotiable instrument to a specified person, it is called as_________
(a) Restrictive endorsement
(b) Special endorsement
(c) Facultative endorsement
(d) Sans Frais endorsement
110. As per Sec.31 of the RBI Act, 1934, ________cannot be made payable to bearer
and______cannot be made payable to bearer on demand.
a. A promissory note; a bill of exchange
b. A bill of exchange; a promissory note
c. A promissory note; a cheque
d. A bill of exchange; a cheque
111. Where an endorser makes his liability dependent upon happening of a specified event,
although such event may never happen, it is called as________endorsement, and such
endorsement is _________
(a) Qualified; valid
(b) Contingent; valid
(c) Qualified; not valid
(d) Contingent; not valid
112. A negotiable instrument may be negotiated until__________

a. Maturity date
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b. Due date
c. It is paid or satisfied
d. None of these
113. A cheque must, in order to charge any person except the drawer, be presented
within________after delivery thereof by such person.
a. 6 months
b. 3 months
c. 1 month
d. A reasonable time
114. Where a bill is not accepted by the drawer within______of presentment of bill, it is
dishonoured by non-acceptance.
(a) 24 hours
(b) 48 hours
(c) 3 days
(d) A reasonable time
115. When a promissory note or bill of exchange has been dishonoured by non-acceptance or
non-payment, the holder may, within_____, cause such dishonour to be noted and certified by a
notary public.
a. 24 hours
b. 48 hours
c. 3 days
d. A reasonable time
116. __________can be drawn in sets.

a. A promissory note
b. A bill of exchange
c. A cheque
d. All of these
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117. Where the endorser waives any of his rights, it is called as________
a. Restrictive endorsement
b. Special endorsement
c. Facultative endorsement
d. Sans frais endorsement
AUDITING & ASSURANCE

1. As per Section 139 of the Companies Act 2013, Company can appoint ____________
as an auditor.
a. individual Chartered Accountant
b. Chartered Accountant Firm
c. Either of the above
d. individual Cost Accountant
2. As per section 141 of the Companies Act, 2013, a person shall be eligible for
appointment as an auditor of a company if he is a ___________.
a. Chartered Accountant whether having Certificate of Practice or not
b. Chartered Accountant having Certificate of Practice
c. Chartered Accountant or Cost Accountant having Certificate of Practice
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d. None of the above
3. Where a limited liability partnership is appointed as an auditor of a company, who shall

be authorised to act and sign on behalf of the firm?
a. Any of the partners of the Firm.
b. Only the partners who are Chartered Accountants.
c. LLP cannot be appointed as an Auditor of a company.
d. Only the Managing Partner of the Firm.
4. As per Section 141(3) of the Companies Act 2013, a person is disqualified to be

appointed as auditor for that company, if he or his relative or partner is holding any
security in the?
a. Company
b. Associate of the company
c. Subsidiary of the company
d. Any one of the above
5. As per Section 141(3) of the Companies Act 2013, a person is not disqualified to be
appointed as auditor for that company, if his relative holds any security in the company
of an amount not exceeding Rupees __________.
a. 10,000
b. 1,00,000
c. 1,000
d. 50,000

appointed as auditor for that company, if he or his partner has given a guarantee in
connection with the indebtedness of any third person to the Company in excess of
_________.
a. ` 5,00,000
b. ` 1,00,000
c. ` 2,00,000
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d. ` 3,00,000
7. Who among the following shall not be disqualified from being appointed as an auditor of
the company as per section 141 of the Companies Act 2013?
a. Person having business relationship with the company.
b. Person whose relative is a key management person or director.
c. Partner or employee of an officer or employee of the company.
8. The term “business relationship” shall be construed as any transaction entered into for a
commercial purpose, except commercial transactions which are in the nature of?
a. Professional services
b. Arm’s Length Price transactions
c. Both of the above
d. -Related services
9. A person whose ________ is a director in the company shall be disqualified to be

appointed as auditor of that company.
a. Step - Father
b. Spouse
c. Step - Brother
10. Mrs. Sailaja is a practicing Chartered Accountant. Her Husband is working as a Director
in the Rushi Ltd., which is a subsidiary of FinApp Ltd. Whether she is eligible to be
appointed as an auditor of FinApp Ltd.?
a. Yes, as she is not the director of Rushi Ltd.
b. No, as her husband is in the position of a Director
c. Yes, as her husband is not a director in FinApp Ltd.
d. No, as she is not the director of FinApp Ltd.
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11. As per Section 141(3), which of the following shall not be counted for the purpose of
Ceiling limit?
a. Dormant Companies
b. One Person Companies
c. Small Companies
d. All of the above
12. As per Section 141(3), which of the following shall be counted for the purpose of Ceiling
limit?
a. Private companies having a paid - up share capital of ` 100 crore.
b. Private companies having a paid - up share capital of ` 101lakhs.
c. Private companies having a paid - up share capital of ` 99crore.
d. Private companies having a paid - up share capital of ` 100lakhs.
appointed as auditor for that company, if he has been convicted by a Court of an offence
involving fraud and a period of _____ years has not elapsed from the date of such
conviction.
a. three
b. five
c. ten
d. eight
14. Which of the following services cannot be rendered by the auditor directly or indirectly to
the company or its holding company or subsidiary company?
a. Accounting and book keeping services
b. Internal audit
c. Design and implementation of any financial information system
d. All of the above
15. Which of the following services cannot be rendered by the auditor directly or indirectly to
the company or its holding company or subsidiary company?
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a. Actuarial services
b. Investment advisory services
c. Management services
d. All of the above
16. CA. Nitin is providing the services of investment banking to FinApp Ltd. Later on, he was
also offered to be appointed as an auditor of the company for the current financial year.
Whether he is eligible or not to accept the appointment?
a. Yes, as Investment Banking is not in the non-audit services list.
b. No, as Investment Banking is in the non-audit services list.
c. Yes, as he is providing those services even before the appointment.
d. No, as he cannot concentrate on both the Audit and Investment banking services.
17. Under section 144, the auditor of the company shall not provide the following services:
a. Taxation advice
b. Review of interim financial information
c. Actuarial services
d. All of the above
18. Mr. Atul, a Chartered Accountant, has been appointed as an auditor of Seema Industries
Ltd. in the Annual General Meeting of the company held in September, 2018, which
assignment he accepted. Subsequently in January, 2019 he joined Mr. Ankit, another
Chartered Accountant, who is the Manager Finance of Seema Industries Ltd., as partner.
Whether Atul can continue as auditor of that company or not?
a. Yes, as Atul by himself is not an employee of Seema Industries Ltd.
b. Yes, as Ankit is a partner of Atul but not the relative of him.
c. No, as Ankit who is a partner of Atul, is an employee of the company.
d. Yes, as Atul has already been appointed as Auditor even before the appointment of
Ankit.
19. Section 139 of Companies Act 2013 deals with the appointment of whom?
a. First Auditor
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b. Subsequent Auditor
d. Cost Auditor
20. In the case of a Government company, the appointment of first auditor shall be made
by?
a. Central Government
b. Comptroller and Auditor-General of India.
c. Board of directors
d. Shareholders
21. In the case of a Government company, what is the tenure of the auditor?
a. Till the conclusion of the sixth annual general meeting.
b. Till the conclusion of the Annual General Meeting.
c. Till the time CAG removes the auditor.
d. Till the conclusion of the fifth general meeting.
22. In the case of a Government company, the appointment of subsequent auditor shall be
made within ______ days from the commencement of the financial year.
a. one hundred and twenty
b. one hundred and eighty
c. sixty
d. thirty
23. In the case of a Government company, ____________shall appoint the first auditor of a
company at a __________ in the case of failure of the Comptroller and Auditor-General
of India to appoint such auditor.
a. Shareholders; Extraordinary General Meeting
b. Board of Directors; Board Meeting
c. Shareholders; Annual General Meeting
d. Board of Directors; Annual General Meeting
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24. In the case of a Government company,___________shall appoint the first auditor of a

company at a ____________in the case of failure of the Board to appoint such auditor.
a. Shareholders; Extraordinary General Meeting
b. Board of Directors; Extraordinary General Meeting
c. Shareholders; Annual General Meeting
d. Board of Directors; Annual General Meeting
25. In the case of a Government company,Board of Directors shall appoint the first auditor of
a companywithin next _________ days in the case of failure of the Comptroller and
Auditor-General of India to appoint such auditor.
a. one hundred and twenty
b. one hundred and eighty
c. sixty
d. thirty
26. Every company shall prepare and keep books of account and other relevant books and
papers and financial statement for every financial year on which basis?
a. Accrual basis
b. Double entry system
27. “Books of accounts”, as defined under section 2(13) of the Act, includes records
maintained in respect of?
a. sales and purchases of goods and services.
b. assets and liabilities of the company.
c. sums of money received and expended by a company.
d. All of the above
28. The books of accounts and other records must give a true and fair view of the state of
the affairs of the company, including its branch office as per section _____ of the
Companies Act 2013.
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a. 138
b. 128
c. 133
d. 144
29. The books of accounts and other books etc. of the company shall be kept at
_________of the company.
a. Registered office
b. Regional office
c. Branch office
d. Every branch
30. If the board of directors decide to keep books of accounts at any other place in India, the
company shall, within ____________ days thereof, file with the Registrar a notice in
writing giving the full address of that other place.
a. seven
b. ten
c. thirty
d. fifteen
31. As per section 128 of the Companies Act 2013, the books of accounts and other
records, etc. maintained within the India shall be open for inspection by _______.
a. any member
b. auditor
c. any director
d. All of the above
32. The inspection of books of accounts in respect of any subsidiary of the company shall be
done only by___________.
a. any director of the company
b. the person authorized in this behalf by a resolution of Board of Directors
c. the person authorized in this behalf by a resolution of shareholders
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33. Financial statements prepared shall _____________.

a. give true and fair view of the state of affairs of the company
b. be prepared as per accounting standard
c. be prepared as per schedule III
d. All of the above
34. Every company shall preserve the books of account together with the relevant vouchers.
The time period of preservation shall be not less than _____ financial years immediately
preceding the relevant financial year.
a. eight
b. seven
c. five
d. ten
35. Who shall be responsible for maintenance of books of accounts of the company?
a. Managing director, the whole -time director in charge of finance.
b. The Chief Financial Officer.
c. Any other person of a company charged by the Board.
d. All of the above
36. The summarized returns of the books of account of the company which are kept and
maintained outside India, shall be sent to the registered office at___________.
a. half yearly intervals
b. quarterly intervals
c. yearly intervals
d. monthly intervals
37. A company shall not re-open its books of account and not recast its financial statements,
unless an application in this regard is made by __________and an order is passed by
the court.
a. the Central Government
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b. the Income-tax authorities

c. the securities and Exchange Board, any other statutory regulatory body or
authority or any person concerned
d. All of the above
38. Under section 130, an order for reopening of accounts is made by ________.
a. a court of competent
b. the Tribunal
c. a court of competent jurisdiction or the Tribunal
d. a court of competent jurisdiction and the Tribunal
39. No order shall be made in respect of re-opening of books of account relating to a period
earlier than __________ financial years immediately preceding the current financial
year.
a. six
b. five
c. seven
d. eight
40. Section 131 of the Companies Act, 2013 deals with the revision of __________.
a. the financial statements of the company
b. the report of the board
41. Under section 131, Tribunal shall give notice to_____and shall take into consideration
the representations, if any.
a. Central Government
b. Income tax authorities
d. Comptroller and Auditor General
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42. As per section 131 of the Companies Act 2013, financial statements of the company or
the report of the Board can be revised for any of the ____________ preceding financial
yearsafter obtaining approval of the Tribunal on an application made by the company.
a. five
b. four
c. three
d. seven
43. As per the requirements of section 131, detailed reasons for revision of financial
statements or reports shall also be disclosed in the ________.
a. Audit report
b. Annual report
c. Board of Director’s report
d. All of the above
44. As per section 131 of the Companies Act, 2013, the application to the tribunal for
revision of financial statements or Board of Director’s report shall be made by the
_____________.
a. Company
b. Central Government
c. Securities and Exchange Board, any other statutory regulatory body or authority
or any person concerned
d. Income-tax authorities
45. As per section 134 of the Companies Act, 2013, the financial statement, including
consolidated financial statement, if any, shall be approved by the __________ before
they are signed on behalf of the Board.
a. Director
b. Board of Directors
c. Shareholders
d. Auditor
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46. The financial statement, including consolidated financial statement, if any, shall be
submitted to the _________after they have been approved and signed.
a. Managing Director
b. Auditor
c. shareholders
d. Registrar of Companies
47. While auditing in CIS environment, the auditor should have an understanding of
__________ to plan the engagement.
a. computer software
b. computer hardware
c. computer processing systems
d. All of the above
48. Master files and transaction files are kept in __________.

a. Online systems
b. Real timeprocessing systems
c. Batch processing systems
d. All of the above
49. If the auditor plans to rely on internal controls in conducting his audit, he should consider
manual and computer controls affecting the CIS environment, which are known as
_________.
a. CIS application controls
b. General CIS controls
50. If transaction trail is less, the risk will ______.

a. be less
b. be high
c. not change
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51. If the auditor plans to rely on internal controls in conducting his audit, he should consider
the specific controls over the relevant accounting applications, which are known
as___________.
a. CIS application controls
b. General CIS controls
52. General controls will be ineffective when EDP department _________.

a. provide physical security for programme files
b. participates in computer software acquisition decisions
c. originate changes in master files
d. design Documentation for computerized operations
53. In auditing through the computer, the computer is used as_____ofthe audit.
a. evidence
b. information
c. tool
d. target
54. The use of ________may be required, because of the absence of input documents or
the generation of accounting transactions by computer programs may preclude the
auditor from examining documentary evidence.
a. Computer Assisted Accounting Techniques.
b. Computer Assisted Accounting Transactions
c. Computer Applied Auditing Techniques
d. Computer Assisted Auditing Techniques
55. Which of the following CAATs allow fictitious transactions planted by the auditor to be
processed along with real ones on client’s system?
a. Test data approach
b. Parallel simulation
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c. Generalised audit software

d. Integrated test facility
56. CIS application controls include __________.

a. Controls over input
b. Controls over processing and computer data files
c. Controls over output
d. All of the above
57. __________involves at arriving an audit opinion through examining the internal control
system for a complete installation and the input and output only for application systems.
a. Auditing through the computer
b. Accounting through the computer
c. Auditing around the computer
58. The internal controls in EDP are called as _________.

a. General EDP controls
b. EDP application controls
59. The primary advantage of _________ is that the auditor has increased power
toeffectively test a computer system.
a. auditing through the computer
b. accounting through the computer
c. auditing around the computer
60. Comptroller and Auditor General can/will resign ________ through a resignation letter
addressed to _______.
a. anytime; Board of Directors
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b. anytime; President of India

c. anytime; Prime Minister
d. when he attains the age of 60 years; President of India
61. The report of the CAG relating to the accounts of the state shall be submitted to
the _________who shall cause them to be laid before the__________.
a. Governor; State Legislature
b. President; State Legislature
c. Governor; Parliament Legislature
d. President; Parliament legislature
62. In India, the function of Government Audits is performed by __________.

a. President of India
b. Prime Minister of India
c. Registrar of Companies
d. Comptroller and Auditor General of India
63. As per article 150 of the C&AG Act 1971, accounts of Union and the States will be
maintained as per the descriptions given by the ___________on advice of __________.
a. CAG; President
b. CAG; Governor
c. Governor; CAG
d. President; CAG
64. Of the following, which is the correct statement?

a. CAG shall hold office for five years or up to 60 years, whichever is earlier.
b. CAG shall hold office for six years or up to 60 years, whichever is earlier.
c. CAG shall hold office for five years or up to 65 years, whichever is earlier.
d. CAG shall hold office for six years or up to 65 years, whichever is earlier.
65. The Comptroller and Auditor General of India shall audit _______.
a. receipts of Union or State
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b. accounts of Government companies

c. specific purpose loans or grants given out of Consolidated Fund of India
d. All of the above
66. In terms of remuneration, CAG shall be paid as equivalent to that of _________judge.

a. Sessions Court
b. District Court
c. High Court
d. Supreme Court
67. In the case of Government companies, _______ shall direct the auditor about the
manner to conduct audit of accounts of Government Company.
a. Registrar of Companies
b. CAG
c. Central Government
d. President
68. According to ___________, the auditors aims to bring out cases of improper, avoidable,
or infructuous expenditure even though the expenditure has been incurred in conformity
with the existing rules and regulations.
a. Performance audit
b. Propriety audit
c. Audit of Sanctions
d. Audit of Provisions
69. In Audit of local bodies, Municipal accounting and budget format have been criticized as
neither _______nor__________.
a. difficult; comprehensible
b. difficult; vague
c. simple; comprehensible
d. simple; vague
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70. Bills issued to patients, are verified for a selected period, with the patients attendance
records, to check that the __________.
a. bills have been properly prepared and issued
b. bills have been maintained
71. Internal checks as regards to the receipt and issue of stores are examined, so as to
ensure that purchases have been properly recorded in the ___________and that the
issues have been made only against proper__________.
a. inventory register; authorization
b. inventory register; documents
c. assets register; documents
d. assets register; authorization
72. In case of audit of hospitals, the auditor has to verify that the grants, if any, received
from_______ has been duly accounted for.
a. General Public
b. Government
c. Trustees
d. All of the above
73. While auditing the accounts of hospital, the auditor should check whether the bills issued
are properly bifurcated into __________.
a. Rent charges
b. Service charges
74. As an auditor of a hospital, what area would you consider while verifying the incomes of
the hospital?
a. Donations and Grants
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b. Legacies
c. Investment Income
d. All of the above
75. In audit of hotels, auditor should examine whether room addition expenses or
construction of a new health club, etc. have been ______________.
a. shown as revenue expenditure
b. shown as deferred revenue expenditure
c. properly capitalized
76. In case of audit of trusts, the significant variations, if any, which have been identified
while comparing the totals of various items of expenditure and income with the budgeted
amounts are to be reported to:
a. Managing Committee
b. Trustees
77. In the case of publication house like newspapers, major source of income is through
________.
a. Advertisement
b. Grants
c. Commission
d. All of the above
78. The auditor of a school while verifying the student’s fees, shall verify that there operates
a system of _______which ensures that the pending demand against the students are
properly raised.
a. internal controls
b. ethical rules
c. internal checks
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79. In case of audit of Partnership firms, the remuneration of the auditor is fixed by the
__________.
a. Income Tax Board
b. Partners
c. Registrar of Societies
d. CAG
80. In case the firms is required to get its accounts audited under the requirements of any
statue, the auditor will have to ___________ his report in case of non-compliance with
the accounting standards.
a. Qualify
b. Disclaim his opinion
c. write in Emphasis of Matter paragraph
d. write in OtherMatter paragraph
81. ____________ means an agreement under which goods are let on hire and hirer has an
option to purchase them in accordance with the terms of the agreement.
a. Operating lease
b. Hire purchase
c. Finance lease
d. Leasing
82. In a lease agreement, a party called __________ acquires the right to use an asset for
an agreed period of time in consideration of payment of rent to another party
called________.
a. Lessor; Lessee
b. Lessee; Lessor
c. Acquirer; Lessor
d. Lessor; Acquirer
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83. ___________ is a simple arrangement where, in return for rent, the lessor allows the
lessee to use the asset for a certain period.
a. Rental Agreement
b. Finance Lease
c. Operating Lease
d. Hire Purchase Agreement
84. In certain lease agreements, the legal ownership of the asset remains with the lessor,
but in substance all the risks and rewards of ownership of the asset are transferred to
the lessee. Such leases are termed as____________.
a. Operating Lease
b. Finance Lease
c. Investment Lease
85. In the case of NGO, the grant towards _______ is used to rotate the amount by giving
temporary loans from the fund to other NGO or beneficiaries.
a. Donation
b. Corpus fund
c. Revolving fund
d. Capital fund
86. To verify cash transactions, it is necessary that the system of _______ and _______
operating in the organization should be reviewed.
a. accounting; internal control
b. vouching; verification
c. accounting, vouching
d. accounting; internal check
87. When accounts are checked, what are the different types of mistakes or manipulations
that could be detected?
a. Errors of omission
b. Errors of commission
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c. Errors of principle
d. All of the above
88. A court decree or a lease agreement are examples of what type of documentary
evidence?
a. Internal Evidence
b. External Evidence
c. Partly Internal and partly external
d. Not an evidence
89. Which among the following are not the principles of accounting?
a. Expenses or cost should be matched to the income or benefit.
b. Inventory should be valued at cost or NRV whichever is lower.
c. No distinction drawn between capital expenditure and revenue expenditure.
d. Long term Investments are to be valued at cost.
90. ___________ should be preferred, since the likelihood of its being duplicated or
manipulated is comparatively less.
a. External Evidence
b. Internal Evidence
c. Documentary Evidence
d. Physical Evidence
91. Under-totaling the receipts column of the cash book can be detected by which type of
checking of cash transactions?
a. Bank Reconciliation Statement.
b. Checking genuineness of book keeping staff.
c. Checking occurrence of transactions.
d. Recasting
92. Which of the following documentary evidence is/are to be considered while checking the
validity of a transaction?
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a. Agreement copies.
b. Minutes of the relevant meeting.
d. Enquiring the Management.
93. In the case of goods purchased at the end of year, it should be further verified that
whether they have been included in the_______, even though not received before the
close of the year.
a. opening stock
b. closing stock
c. average stock
d. sales
94. As per section 188 of the Companies Act 2013, no company shall enter into any
contract or arrangement with a _______ except with the consent of the__________.
a. related party, Board of directors
b. unrelated party, Board of directors
c. related party, shareholders
d. known party; shareholders
95. All invoices for the purchases made before one week of the closure of the year can
be traced in the _________maintained by the Receiving Section.
a. Goods Approval Book
b. Goods Sent Book
c. Goods Purchases Book
d. Goods Received Book
96. In case of vouching the ____________, auditor has to consider the Bankruptcy
dividends received.
a. Bad debts written – off
b. Sundry Debtors
c. Recovery of Bad debts
d. Sales
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97. To verify credits in respect of goods returned, the auditor must, check entries in
the ___________kept at the factory gate.
a. Goods Inward Book
b. Goods Outward Book
c. Goods Returned Book
d. Cash Book
98. In case of unclaimed wages, the auditor should examine whether __________.
a. the amount has been deposited in a separate bank account
b. deposited with the cashier
c. held in a safe deposit box
d. All of the above
99. While vouching wages, auditor should examine whether there is proper segregation of
duties. Which of the following activities should not be done by same department?
a. Maintaining personnel records and approving changing in wages rates.
b. Making salary statements and filing tax returns.
c. Proposing pay roll summary and disbursement of wages.
d. Comparing time clock records with time reports prepared by supervisors and
preparing list of workers employed along with the units of production for each one
of them.
100. Accounting is a continuous process because the business never comes to halt. It is
therefore, necessary that transactions of one period would be separate from those in
the ensuing period so that the results of the working of each period can be correctly
ascertained. The arrangement that is made for the purpose is technically known
as__________.
a. Set off procedures
b. Examination in Depth
c. Cut-off procedures
d. Window Dressing
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101. Verification is a process to verify ________ of particular asset or liability.

a. Ownership and valuation
b. Possession
c. Existence
d. All of the above
102. Amounts contributed or transferred from profits to make good the diminution in
assets values due to the fact that some of them have been lost or destroyed, as a result
of some natural calamity or debts have proved to be irrecoverable are described as
_________.
a. Provisions
b. Reserves
c. Specific Provisions
d. General Reserves
103. Verification is generally carried out ____________.

a. At the start of the year
b. At the end of the year
c. After two Quarters of the year
d. During the year
104. If a ________is in excess of the amount considered necessary, the same must be
written back or credited to a _________Account.
a. Provision, Provision
b. Reserve, Reserve
c. Provision, Reserve
d. Reserve, Provision
105. Reserves which are not disclosed in the Balance sheet are known as __________.
a. Secret reserves
b. Hidden reserves
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d. Secret Provisions
106. Which of the following statements is not true?

a. Provisions are normally charged to the Statement of Profit and Loss before
arrivingat the amount of profit.
b. Reserves are appropriations out of profits.
c. Provisions are not an appropriation out of profits.
d. Reserves are normally charged to the Statement of Profit and Loss before
arrivingat the amount of profit.
107. A_____reserve is created for some definite purpose out of the profits of the
company.
a. Hidden
b. Secret
c. Specific
d. Either of the above
108. Among the following which deals with the, ‘Useful life of the asset changed as per
the change in circumstances’?
a. Prior period item.
b. Extraordinary item
c. Change in accounting policy.
d. Change in accounting estimate.
109. Among the following which deals with the, ‘Disposal of major fixed asset’?
a. Ordinary activity (exceptional item).
b. Prior period item.
c. Change in accounting estimate.
d. Extraordinary item
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110. Professional skepticism requires that the auditor assume that management is
___________.
a. Neither honest nor dishonest
b. Dishonest unless proved otherwise
c. Not necessarily honest
d. Reasonably honest
111. The engagement partner should be responsible for _______.

a. Direction of audit engagement
b. Performance of audit engagement as per Standards
c. Auditor's report being appropriate
d. All of them
112. ________process is designed to provide the firm with _______ that its policies and
procedures relating to quality control are relevant, adequate and operating effectively.
a. Consultation; absolute assurance
b. Audit; absolute assurance
c. Monitoring; reasonable assurance
d. Consultation; reasonable assurance
113. Standard on quality control is to be applied for __________.

a. Auditing services
b. Review engagements
c. Related services
d. All of the above
114. As per SA 560, for facts which become known to the auditor after the date of the
auditor’s report but before the date the financial statements are issued, if management
amends the financial statements, the auditor shall _________.
a. Carry out the audit procedures necessary in the circumstances on the
amendment.
b. Not require to extend the audit procedures
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c. No need to provide a new auditor’s report on the amended financial statements

115. The auditor shall obtain sufficient and appropriate evidence that all events after the
balance sheet date but before or up to the date of ______ that require adjustment or
disclosure in _______ have been identified.
a. Board report; Auditor’s report
b. Board's approval; Financial statements
c. Auditor's report; Financial statements
d. Auditor's report; Board report
116. In case facts become known to the auditor after the date of the audit report but
before the date financial statements are issued then, auditor shall _______.
a. not provide a new report even if facts are such that had been known to the auditor at
the date of audit report, it might have affected his audit report
b. discuss with management and TCWG the matter whether there is need to amend
the financial statements and treatment in financial statements
c. should not ask the management and TCWG to amend financial statements in any case
because it may give rise to many complications
d. ask the management and TCWG to inform about the situation to everyone in receipt of
previously issued financial statements and amend the financial statements
117. A limited company is having a pending case filed against it on 31st March, 2019. A
decision has been received from the court on 6th April, 2019, i.e. after the balance sheet
date. Which of the following is correct?
a. It is a subsequent event.
b. It should be considered by the management while preparing the financial statements.
c. Auditor needs to check whether it has been dealt with in the financial statements as
per applicable financial reporting framework.
d. All of the above
118. As per SA 570 ____________.

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a. Assessment of entities going concern is responsibility of management

b. Assessment of entities going concern is responsibility of auditor
119. As per SA 570, Adverse financial ratio’s is a ___________.

a. Financial Indicator
b. Operating indicator
c. Other indicator
120. Which of the following is not a specialist upon whose work an auditor may rely?
a. Certified Valuer
b. Internal auditor
c. Appraiser
d. Engineer
121. As per SA 610, statutory auditor shall determine can he rely on Internal Auditor for
using his work. It depends on the following except?
a. Level of competence
b. Prohibition by law
c. Objectivity of internal auditor
d. Systematic & Disciplined approach
122. The external auditor shall not use an internal auditor to provide direct assistance if
_____________.
a. the internal auditor has sufficient competence to perform the proposed work
b. Internal control system has no weaknesses
c. there are significant threats to the objectivity of the internal auditor
d. Internal auditor is a Professional
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123. A person appointed by management who is an expert in a field other than accounting
and auditing, for the purpose of assisting the entity in preparation of financial statements
is ____________.
a. Accounting expert
b. Financial expert
c. Management’s expert
d. Auditor’s expert
124. Which of the following shall not be considered for determining the need of auditor’s
expert?
a. The availability of alternative sources of audit evidence
b. The nature and significance of the matter, including its complexity.
c. Independence of auditor
d. The risks of material misstatement in the matter.
125. Which of the following is not a section of the SA 700 auditor’s Unmodified opinion?
a. Opinion
b. Auditor’s responsibility
c. Reasons for the Qualifications
d. Management’s responsibility for the financial statements
126. Which of the following relates the statement ‘Sufficient and appropriate audit
evidence is not available and it is pervasive’?
a. Disclaimer of opinion
b. Qualified opinion
c. Adverse opinion
d. Unmodified opinion
127. As per SA 700, a description of ‘an audit in accordance with auditing standards’ is
given in which section?
a. Opinion
b. Basis for opinion
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c. Auditor’s responsibility
d. Management’s responsibility
128. Which of the following relates the statement ‘subject to / except effect of’?
a. Disclaimer of opinion
b. Qualified opinion
c. Adverse opinion
d. Unmodified opinion
129. Which of the following relates the statement ‘an audit involves performing procedures
to obtain audit evidence about the amounts and disclosures in the financial statements’?
a. Opinion
b. Basis for opinion
c. Auditor’s responsibility
d. Management’s responsibility
130. No difference between accounting and auditing since both deals with financial
statements.
a. True
b. False
c. Cannot say
131. The objective of the auditor is _______.

a. To express an opinion on Financial Statements
b. To detect Frauds and Errors
c. To communicate deficiencies in Internal Control
d. All of the above
132. Auditor is a _________ and not a ___________.

a. Bloodhound, Watchdog
b. Watchdog, Bloodhound
c. Watchdog
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d. Bloodhound
133. __________ implies systematic, critical and special examination of the records of a
business for a specific purpose.
a. Accounts
b. Auditing
c. Investigation
134. __________ arises as a result of transactions having been recorded in a

fundamentally incorrect manner.
a. Errors of Principle
b. Errors of Commission
c. Errors of Duplication
d. Procedural Errors
135. When credit purchases of Rs 7200 are recorded on the credit side and credit sales of
Rs 7200 are recorded on the debit side, this kind of error is called _________.
a. Error of omission
b. Compensating error
c. Error of principle
d. Error of commission
136. Which of the following is an example of inflating cash payments?

a. Making payments against purchase vouchers
b. Teeming and lading
c. Not accounting for cash sales fully
d. Making payments against inflated vouchers
137. The type of errors, the existence of which becomes apparent in the process of
compilation of accounts is known as _________.
a. Self-revealing errors
b. Intentional errors
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c. Concealed errors
d. Unconcealed errors
138. A capital reserve, generally, can be utilised for writing down fictitious assets or losses
or (subject to provisions in the Articles) for issuing bonus shares if it is realised.
a. True
b. False
c. Cannot say
139. An unintentional misstatement in financial statements, including the omission of an

amount or a disclosure is known as ______?
a. Error
b. Fraud
c. Collusion
140. Representations by management, explicit or otherwise, that are embodied in the

financial statements, as used by the auditor to consider the different types of potential
misstatements that may occur are known as ______?
a. Anomaly
b. Assertions
c. Written Representations
d. None
141. _______ may involve sophisticated and carefully organized schemes designed to
conceal it.
a. Fraud
b. Error
d. Both of the above
142. An audit is ____ official investigation into alleged wrongdoing.

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a. Not an
b. an
c. Cannot say
143. The sufficiency and appropriateness of audit evidence are __________.

a. Inversely related
b. Interrelated
c. Directly related
d. Cannot say
144. Financial statements include Profit & Loss Account and Balance Sheet but not notes
to account.
Correct
a. Incorrect
b. Cannot say
145. Which among the following is true?

a. Audit evidence comprises 'only' information that supports and corroborates
management’s assertions.
b. Audit evidence comprises 'only' information that contradicts such assertions.
c. Audit evidence comprises 'either' information that supports and corroborates
management’s assertions, 'or' any information that contradicts such assertions.
d. Audit evidence comprises 'both' information that supports and corroborates
management’s assertions, 'and' any information that contradicts such
assertions.
146. Secret reserve strengthens financial position, hence they are allowed.
a. Right
b. Wrong
c. Cannot say
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147. The auditor shall assemble the audit documentation in an audit file within ________
from the date of the auditor’s report.
a. 30 Days
b. 45 Days
c. 60 Days
d. 90 Days
148. The risk that the auditor’s conclusion, based on a sample, may be different from the
conclusion if the entire population, were subjected to the same audit procedures is
known as ________?
a. Inherent Risk
b. Control Risk
c. Detection Risk
d. Sampling Risk
149. The entire set of data from which a sample is selected and about which the auditor
wishes to draw conclusions is known as __________?
a. Sample
b. Audit Evidence
c. Population
150. ________ is a sample selection method in which the auditor selects the sample
without following a structured technique.
a. Block Sampling
b. Statistical Sampling
c. Cluster Sampling
d. Haphazard Sampling
151. __________ is responsible for overseeing the strategic direction of the entity and
obligations related to the accountability of the entity.
a. Management
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b. Employees
c. Those Charged with Governance
152. A misstatement or deviation that is demonstrably not representative of

misstatements or deviations in a population is known as ________.
a. Assertion
b. Anomaly
c. Identified Mis-statement
d. Fraud
153. Engagement letter need not be entered for each year of the period of auditor's
appointment.
a. Correct
b. Incorrect
c. Cannot say
154. Planning is a ___________ of an audit.

a. Discrete phase
b. Continual & Iterative process
155. Which of the following procedures should be planned at first by the auditor?
a. Risk Assessment Procedures
b. Further Audit Procedures
c. Other required procedures
156. As per SA-315, the auditor shall obtain an understanding of ________.

a. Nature of the entity
b. Relevant industry, regulatory and other external factors
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c. Entity’s objectives and strategies

d. All of the above
157. ____________ consists of a series of verification procedures to be applied to the

financial statements for the purpose of obtaining sufficient evidence.
a. Audit Procedures
b. Audit Programme
c. Audit Techniques
d. Overall Audit Strategy
158. For the purpose of programme construction, which of the following points should be
kept in mind?
a. Co-ordinate the procedures to be applied to related items.
b. Stay outside the scope and limitation of the assignment.
c. Consider some possibilities of error.
d. All of the above
159. Evaluating responses to inquiries is an integral part of the _______ process.

a. Analytical Procedures
b. Inquiry
c. External Confirmation
d. Inspection
160. Substantive procedures do not test the balances of accounts.

a. True
b. False, as they test balances through Substantive analytical procedures
c. False, as they test balances through Test of details
d. Cannot say
161. One of the techniques used for gathering evidence is substantial review.
a. Correct
b. Incorrect
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c. Cannot say
162. __________ may be defined as audit procedures designed to evaluate the operating
effectiveness of controls in preventing, detecting and correcting material misstatements.
a. Risk assessment procedures
b. Substantive procedures
c. Tests of Controls
d. Tests of details
163. Counted 'cash on hand'.

The above audit procedure can be classified as one of the following sources or type of
evidence?
a. Physical evidence
b. Documentation
c. Mathematical evidence
d. Data interrelationships
164. Asked the client, questions about internal controls.

evidence?
b. Representation by client personnel
c. Representation by third parties
165. Repairs expense is supported by examining its invoices.

evidence?
a. Representation by third parties
d. Documentation
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166. Verified the 'letter received from a public warehouse' that company had stored goods
in the warehouse.
evidence?
a. Representation by third parties
b. Physical evidence
c. Data interrelationships
d. Mathematical evidence
167. Stood beside cash room to determine whether clerk listed all cash receipts in
incoming mails.
evidence?
a. Data interrelationships
b. Mathematical evidence
c. Physical evidence
d. Documentation
168. Taking management representation is a convenient, economical and acceptable

auditing method even where the direct access by the auditor to audit evidence is
possible.
a. Right
b. Wrong
c. Cannot say
169. Computed gross margin and compared to prior years.

evidence?
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170. Cluster sampling is less effective than random sampling.

a. Right
b. Wrong
c. Cannot say
171. _____________ is a comprehensive series of questions concerning internal control.

a. Narrative record
b. Check List
c. Internal Control Questionnaire
d. Flow chart
172. ___________ is the most widely used form for collecting information about the
existence, operation, and efficiency of internal control in an organization.
a. Narrative record
b. Check List
c. Internal Control Questionnaire
d. Flow chart
173. __________ is a graphic presentation of each part of the company’s system of

internal control.
a. Narrative record
b. Check List
c. Questionnaire
d. Flow chart
174. Provisions of Internal Audit is applicable to every unlisted public company having
paid up share capital of _______ rupees or more during the preceding financial year.
a. Five hundred crore
b. Two hundred crore
c. Fifty crore
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d. One hundred crore
175. Letter of weakness is issued by the Management.

a. True
b. False
c. Cannot say
176. Provisions of Internal Audit is applicable to every unlisted public company having
outstanding deposits of _________ rupees or more at any point of time during the
preceding financial year.
b. Two hundred and fifty crore
c. Twenty Five crore
d. Fifty crore
177. Provisions of Internal Audit is applicable to every unlisted public company having a
turnover of ________ rupees or more during the preceding financial year.
b. Two hundred crore
c. One hundred crore
d. Fifty crore
178. As per section 138, the internal auditor shall either be a chartered accountant or a
cost accountant (whether engaged in the practice or not).
a. Correct
b. Incorrect
c. Cannot say
179. Risk of material misstatement has _______components.

a. One
b. Two
c. Three
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d. Four
180. Internal check is part of internal control system.

a. True
b. False
c. Cannot say
181. Controls can be _________related to an assertion.

a. Directly
b. Indirectly
182. In performing __________, the auditor follows a transaction from origination through
the company's processes including information systems, until it is reflected in the
company's financial records.
a. Tests of Details
b. Tests of Controls
c. Walk through test
d. Any of the above
183. __________ are computer programs that the auditors use as a part of audit
procedures to process data of audit significance contained in a client's information
systems.
a. Data analytics
b. Test packs
c. CAAT's
d. Integrated test facility
TAXATION
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1. Article _______________of the Constitution of India provides that no tax can be levied
or collected, except by the authority of Law.
a. Article 265
b. Article 246
c. Article 270
d. Article 276
2. Which of the following are not characteristics of indirect taxes?

a. It is imposed on persons
b. It is levied on Goods and Services
c. It's burden can be shifted by the taxpayers to some other person
d. Incidence of such tax is borne by the consumer
3. GST Council shall be constituted by the ___________within 60 days from date of

commencement of Constitution (101st Amendment) Act, 2016.
a. President
b. Parliament
c. Prime Minister
d. Finance Minister
4. "Goods and Services Tax" means any tax on supply of goods or services or both except
taxes on supply of the___________.
a. Tobacco
b. Alcoholic liquor for human consumption
c. Legal services
d. All of the above
5. Which of the following is not a feature of Goods and Services Tax?

a. It is destination based consumption tax.
b. It is origin based taxation.
c. Self-supply is also subject to tax.
d. In this, tax collected by Local Bodies has not been subsumed.
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6. Goods and Services Tax (Compensation to States) Act, 2017 provides a mechanism to
compensate the States on account of loss of revenue due to implementation of GST for
a period of ______.
a. 10 Years
b. 5 Years
c. 6 Years
d. 8 Years
7. What will be status of tobacco and tobacco products under GST regime?
a. It would be subject to GST along with power to Central Government to levy
Central Excise Duty
b. It would be subject to GST only
c. It would be subject to Central Excise Duty along with Value Added Tax only
d. d) It would be subject to Central Excise Duty only
8. Mr. Aakash being a dealer of Karnataka, sells some goods to a dealer of Haryana, in
such a case, revenue would go to __________
a. Karnataka
b. Haryana
c. 50% to each State
9. Which of the following shall be included in the definition of "Supply", if it is for a consideration?
(a) Sale
(b) Barter
(c) Disposal
(d) All of the above
10. Which of the following activities are covered within the meaning of “Supply,” if made without
Consideration?
a. Permanent transfer of business assets, on which no ITC has been availed
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b. Permanent transfer of business assets on which Input Tax Credit (ITC) has been
availed
c. Temporary transfer of business assets
d. All of the above
11. Who amongst the following shall be deemed to be the "Related Persons"?
a. Legally recognised partners in business
b. Employer and Employees
c. Persons directly or indirectly controlled by common third person
d. All of the above
12. Taxable person means a person who is __________.

a. Registered under GST Laws
b. Liable to be registered under GST Laws
d. Neither (a) nor (b)
13. B Ltd. of Delhi, transfers a title of furniture to C Ltd. of Haryana for consideration of Rs.
96,000. Such transfer of title of furniture shall be considered its ______.
a. Supply of goods
b. Supply of services
c. (e) Both (a) and (b)
14. Diksha transfers goods for an agreed consideration to Priya. She carries out the job work on
such goods and sends the goods to Diksha. The supply relating to job work shall be considered
as __________.
a. Supply of goods
c. Both (a) and (b)
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15. Abhishek closed down his business during FY 2018-19 due to losses. He had some capital
and input goods in the business, which he took at home. The above activity shall be considered
as ____________.
a. Supply of goods
c. Both (a) and (b)
16. Which of the following are the necessary elements to constitute supply?
a. Activity involves supply of goods or services or both
b. Supply is made in the course of business
c. Supply is made by a taxable person
d. All of the above
17. Money shall be considered as

a. Goods
b. Services
c. Partly goods and partly services
18. Which of the following shall be covered within the meaning of "Goods"?
a. Money
b. Activities relating to conversion of money
c. Actionable claims
d. Both (b) and (c)
19. Which of the following shall not be termed as "Supply”?

a. Zero-rated supply
b. Composite and Mixed supply
c. Exempt supply
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20. Parish is a part-time director in SVV & Associates. He received remuneration from the
company in respect of rendering the employment services to the Company. Whether GST would
be levied on such transaction, if yes, then who will be liable to pay GST?
a. Yes, Company
b. Yes, Part-time director
c. No, GST would not be levied
21. Vishal, a registered taxable person in Uttar Pradesh, sold his constructed building to Aman
for Rs 70,00,000. Calculate the GST liability of Vishal, if the rate of GST is 18%.
a. Rs.12,60,000
b. Rs. 9,00,000
c. Rs. 6,30,000
d. Nil
22. Which of the following are covered within the meaning of Court for the purpose of Schedule
III under GST?
a. District Court
b. High Court
c. Supreme Court
d. All of the above
23. Which of the following shall be considered as forward charge under GST?
a. When GST is payable by recipient of goods/services
b. When GST is payable by supplier of goods/services
c. Both (a) and (b)
24. In which of the following cases reverse charge liability would arise under GST ?
a. Sale of lottery by distributor to general public
b. Sale of lottery by State Government to distributor or selling agent
c. Both (a) and (b)
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25. Mr. Ramlal is an agriculturist and le has sold Silk Yarn to Mr. Shyam Lal trader, who is not
registered under GST. Such goods are further sold to Mr. Ramesh, who is registered under
GST. Who is liable to pay GST ?
a. Mr. Ramlal
b. Mr. Shyamlal
c. Mr. Ramesh
26. BC India Ltd. is a Goods Transport Agency, which provides services to CD India Ltd. Such
services are liable to 5% CGST. Who is liable to pay/ charge CGST ?
a. BC India Ltd.
b. CD India Ltd.
27. Raxmann India Ltd. approaches Arbitral Tribunal for certain matters during PY 2018-19.
The turnover of Raxmann India was Rs 5 lakhs in PY 2017-18. Who is liable to pay GST on fees
payable to such Arbitral Tribunal ?
a. Raxmann India Ltd..
b. Arbitral Tribunal
28. Royota India Ltd., which is not registered under GST, avails services of speed post from
postal department. Who is liable to pay GST ?
a. Gata India Ltd.
b. Postal Department
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29. Mr. Jimmy is an insurance agent and receives commission from Insurance company on
insurance policies sold/renewed. Who is liable to pay GST ?
a. Mr. Jimmy
b. Insurance company
30. Mr. Salman is a recovery agent of CICI Bank and he receives 5% commission on recovery
made by him during the month. Who is liable to pay GST ?
a. Mr. Salman
b. CICI Bank
31. Mr. Rohit has created music for an upcoming movie for the music company E-Series for a
consideration of 10 lakhs. Who is liable to pay GST ?
a. Mr. Rohit
b. E-series
32. Which of the following shall be treated as intra-State supply of good under GST ?
a. Sale of goods by supplier located in Delhi to a person located in Haryana
b. Sale of goods by supplier located in Delhi to a person located in Delhi
c. Both (a) and (b)
33. Which of the following shall be treated as inter-State supply of services under GST ?
a. Supplier of services located in Delhi provides services in Haryana
b. Supplier of services which is located in Delhi provides services in Delhi itself
c. Both (a) and (b)
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34. Which of the following shall not be treated as zero rated supply of goods?
a. Export of goods
b. Supply of goods specified in exemption list
c. (c) Supply of goods to SEZ
d. (d) None of the above
35. Rate of GST applicable in case of mixed supply, shall be of particular supply which attracts
the _____________rate of tax.
a. Average
b. Principal supply’s
c. Highest
d. Lower
36. Mr. Anirudh supplies a package consisting of canned foods, chips, peanuts, chocolate and
apple juice. The nature of supply shall be ____________.
a. Mixed supply
b. Composite supply
d. Exempt supply
37. Mr. Chawla is engaged in the business of supplying alcoholic liquor for human consumption.
He also supplies peanuts along with alcohol. Such supply shall be considered as _________
a. Composite supply
b. Mixed supply
c. Non-taxable supply
d. Exempt supply
38. What shall be the location of supplier in case the location of supplier is not known?
a. Location of usual place of residence of supplier
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b. Location of fixed establishment

c. Location of place of business whose registration has been obtained
d. Location of establishment most directly connected with the supply
39. Anuj of Haryana supplies goods to Robin of Haryana amounting Rs.60,000. What shall be
the place of supply in such a case ?
a. UP
b. Delhi
c. Haryana
40. Mr. X of UP visits to the Croma store in Delhi, purchases a washing machine amounting Rs.
1,50,000 and brought back the washing machine to UP. He did not provide his address to the
Croma store. What shall be the place, of supply in such a case ?
a. UP
b. Haryana
c. Delhi
41. Mr. A of Gujarat, imported raw material of cloth amounting Rs.25,00,000 from USA for
manufacturing T-shirts. What shall be the place of supply in such a case ?
a. Gujarat
b. USA
c. Maharashtra
42. What shall be the place of supply in respect of services on board a conveyance, where
recipient is a unregistered person ?
a. Location of supplier
b. Location of recipient
c. Location of the first scheduled point of departure of conveyance
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43. Section 13 of IGST Act, 2017 defines place of supply of_________

a. Goods
b. Services
c. Both
44. What shall be the place of supply, where the goods are physically made available by the
recipient of services to the supplier of services, to provide services in respect of such goods ?
a. Location of supplier
c. Location where services are actually performed
45. What shall be the place of supply where the services have been provided by a supplier of
services to the recipient of services in respect of an immovable property?
a. Location where immovable property is situated
c. Location of supplier
46. Which section of CGST Act, 2017 governs the provision of Composition Scheme ?
a. Section 10
b. Section 6
c. Section 8
47. A person registered in special category state like Assam, whose aggregate turnover in the
preceding financial year did not exceed__________may opt for composition scheme.
a. Rs. 1 crore
b. Rs. 1.5 crores
c. Rs. 75 lakhs
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d. Rs. 50 lakhs
48. Sunami Ltd., a manufacturer got itself registered under composition scheme on 01.10.2018.
The rate of GST applicable on taxable supply made by it would be_________
a. 1%
b. 2 %
c. 2.5%
d. 0.5%
49.Cube Ltd., a manufacturer of ice-cream proposes to register under composition scheme on

01.10.2018. The rate of GST applicable on it shall be___________
a. 1%
b. 2%
c. 2.5%
d. Composition Scheme is not available to ice-cream manufacturer
50. Amar engaged in providing accountancy services. He seeks you advise for availability of
composition to register in GST ?
a. He can opt for composition scheme irrespective of turnover
b. He can opt for composition scheme when his turnover during the preceding
financial year does not exceed prescribed limit
c. He cannot opt for composition scheme
d. He cannot opt for composition scheme if he provides inter-State services
51. Which of the following statement is not correct, in context of composition scheme ?
Person who opts for scheme ____________
a. Shall not collect tax from recipient
b. Would not be entitled to any Input tax credit
c. Issue tax invoice for outward supply made by him
d. Issue bill of supply for outward supply made by him
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52. Anuradha Ltd., which is registered under composition scheme, received legal services
amounting Rs.10 lakhs. Calculate the GST liability in above case, if the normal rate of GST is
18% and Composition rate is 1% ?
a. Rs 1,80,000
b. Rs 10,000
c. Rs 5,000
d. Nil
53. Which of the following are not the benefits of Composition scheme?
a. Relief to small tax payers
b. Quarterly payment and return of GST
c. Person opting for such scheme are not eligible for ITC
d. No detailed accounts and records are required to be maintained
54. Dev was a registered dealer under normal scheme in the preceding FY and got registered
under composition scheme in the current financial year. Dev needs to pay tax under
composition scheme ___________
a. From beginning of such financial year
b. After grant of registration
c. After 60 days from commencement of such financial year
55. The manufacturers of ___________goods, shall not be eligible to opt for the composition
scheme.
a. Ice-cream
b. Pan Masala
c. Tobacco
d. All of the above
56. What shall be the time of supply of goods, in respect of supply of vouchers, where the
supply is not identifiable at the point, the voucher is issued ?
a. Date of issue of voucher
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b. Date of redemption of voucher

c. Expiry date of voucher
d. Earliest of the above
57. What is the time of supply of services in case supplier is liable to pay tax under forward
charge and the invoice is not issued by the supplier within the time prescribed u/s 31(2) ?
a. Date of issue of invoice by the supplier
b. Date of provision of services
c. Date of receipt of payment
d. Date of completion of provision of services or date of receipt of payment by
the supplier, whichever is earlier
58. When will be recipient and supplier be treated as related person under GST ?
a. Where such person are employer and employee
b. Where one of them directly or indirectly controls other
c. Where such person are officer or directors of one another's business
d. All of the above
59. What are notified supplies under section 15(5) of CGST Act, 2017 ?
a. Service of money changing along with purchase or sale of foreign currency
b. Air tickets booking service by an air travel agent
c. Life Insurance business service
d. All of the above
60. Input Tax in relation to a registered person, includes the________

a. IGST charged on import of goods
b. Tax payable under reverse charge by the recipient
c. Tax paid under the composition levy
d. Both (a) and (b)
61. As per section 39(1), due date for filing of GSTR-3 for every calendar month is_________
a. 10th of the following calendar month
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b. 15th of the following calendar month

c. 18th of the following calendar month
d. 20th of the following calendar month
62. Which of the following supplies shall be covered under the exempt supply ?
a. Transaction in securities
b. Sale of land
c. Sale of building where the entire consideration w.r.t. building has been received
after issuance of completion certificate
d. All of the above
63. Which of the following capital goods are supplied as scrap, in respect of which the taxable
person shall pay tax on the transaction value determined u/s 15 of CGST Act, 2017 ?
a. Refractory bricks
b. Moulds and dies
c. Jigs and Fixtures
d. All of the above
64. Aggregate turnover______ the value of inward supplies on which tax is payable on reverse
charge basis.
a. Includes
b. Excludes
c. Either (a) or (b), depends on the situation
65. The appointed day for the purpose of “Registration" in GST means_________
a. 01.07.2017
b. 01.09.2017
c. 22.06.2017
d. 01.06.2017
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66. What is the time limit for furnishing of clarification by the taxable person to the proper officer,
where notice had been issued by the proper officer to the applicant in case of deficiency in the
application for registration under GST ?
a. 3 days
b. 3 working days
c. 7 days
d. 7 working days
67. What is the effective date of registration, if application for registration has been filed within
30 days from the date on which the person becomes liable for registration?
a. Date on which application for registration is filed
b. 4th day from the date on which application for registration is filed
c. Date on which person becomes liable for registration
d. Date on which approval is granted by the proper officer
68. In which form the application for amendment of registration is filed ?

a. Form GST REG-06
b. Form GST REG-14
c. Form GST REG-13
d. Form GST REG-12
69.What is the rate of interest on delayed payment of GST ?

a. 18% per annum
b. 18% per month
c. 24% per annum
70. Amount available in E-Credit ledger, cannot be utilised against payment of____________
a. Interest
b. Penalty
c. Fees
d. All of the above
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71. CIN is_________ digit number.

a. 14
b. 15
c. 16
d. 17
72. What is the due date for filing Form GSTR-1 ?

a. On or before 10th of the month succeeding the tax period
b. On or before 11th of the month succeeding the tax period
c. On or before 20th of the month succeeding the tax period
73. Which GSTR Form shall be filed by Input Service Distributor ?

a. GSTR 1
b. GSTR 2
c. GSTR 8
d. GSTR 6
74. Which GST form shall be used for GST Audit ?

a. GSTR 9
b. GSTR 9B
c. GSTR 9C
d. GSTR 9A
75. Who are covered within the meaning of Authorised Representative ?

a. Employees
b. Relatives
c. Practicing Chartered Accountant
d. All of the above
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76. The Goods Transport Agency has charged Rs.1,500 each from three parties for delivering
goods in single tempo. Who will be liable to GST?
a. Goods Transport Agency
b. Service recipients
c. None of the above
77. If services were provided by Arbitral Tribunal to business entity located in Delhi whose
turnover is Rs.8 lakhs in the preceding year, who would be liable to pay GST?
a. Arbitral Tribunal
b. Business Entity
78. Taxes can be broadly divided into -------------------

a. Direct taxes
b. Indirect taxes
c. Direct or Indirect taxes
d. Ancillary taxes
79. Direct Taxes are taxes that are -----------

a. Directly paid to the government by the taxpayer
b. Applied on the manufacture or sale of goods and services
c. Both (a) and (b)
d. Either (a) or (b)
80. Income tax is ------------

a. A "Quarterly Tax"
b. A "Half Yearly Tax"
c. An "Annual Tax", which may paid in instalments
d. An "Annual Tax" paid at the end of the year
81. Finance Bill contains amendments to, and provides for ----------------
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a. Exiting provisions of Income-tax Act, 1961

b. Direct and Indirect tax rates
c. Direct tax rates
d. Both (a) and (b)
82. Income-tax Act, 1961 came into force as on ------------------
a. 1.4.1962
b. 1.4.1961
c. 31.3.1961
d. 31.3.1962
83. Income-tax Act contains provisions relating to ------------------

a. Determination of taxable income
b. Determination of tax liability
c. Income-tax procedures relating to assessment, appeals and penalties
d. All of the above
84. As per section 2(31), person includes ------------------------

a. HUF
b. Local Authority
c. Company
d. All of the above
85. HUF includes -----------------

a. All person vertically descended from a common ancestor
b. All person lineally descended from a common ancestor
c. All person upwardly descended from ancestor
d. All of the above
86. Generally, Previous Year is a period of ----------------------

a. 12 months before the Assessment Year
b. 12 months after the Assessment Year
c. 12 months parallel to the Assessment Year
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d. 12 months coinciding with the Assessment Year
87. The first previous year of a newly started business ------------------

a. Must be equal to 12 months
b. Can exceed 12 months
c. Can be equal to or less than months 12 months
88. Delhi University is considered as ------------------
a. Artificial Juridical Person
b. Association of Persons
c. Body of Individuals
d. Local Authority
89. B is a medical professional aged 65 years. The exemption limit for B for AY 2019-20 is
----------
a. Rs. 1,80,000
b. Rs. 2,50,000
c. Rs. 3,00,000
d. Rs. 5,00,000
90. C is a retired teacher aged 85 years. The exemption limit for C for AY 2019- 20 is -----------
a. Rs. 1,80,000
b. Rs. 2,50,000
c. Rs. 3,00,000
d. Rs. 5,00,000
91. Alex is a non-resident individual aged 65 years. The exemption limit for Alex for AY 2019-20
is ------------
a. Rs. 1,80,000
b. Rs. 2,50,000
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c. Rs. 3,00,000
d. Rs. 5,00,000
92. The applicable rate of Income-tax in case of a Jhilmil Private Limited, an Indian company,
whose place of management is outside India is -----------
a. 10%
b. 20%
c. 30%
d. 40%
93. The gross total income must be rounded off to the nearest multiple of -----------
a. 10 rupees
b. 100 rupees
c. 1,000 rupees
d. NIL
94. The applicable rate of Income-tax in case of a firm is

a. 10%
b. 20%
c. 30%
d. 40%
95. A resident Hindu Undivided Family (HUF) can be -------------

a. Resident and ordinarily resident in India
b. Resident but not ordinarily resident in India
c. Non-resident in India
d. Either (a) or (b)
96. While calculating the number of days in order to ascertain the residential status of an
individual, the day when he enters India and the day when he leaves India, both are ---------------
a. Included
b. Excluded
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c. The date of entry is included and date of exit is excluded

97. A resident HUF will be considered as resident and ordinarily resident in India, if its
-------------------- is an ordinary resident in India.
a. Members
b. Karta
c. Karta and any one member
d. Karta and all members
98. As per ------------- total income means the total amount of income referred to in section 5,
computed in the manner laid down in the Income-tax Act,1961.
a. Section 2(41)
b. Section 2(43)
c. Section 2(45)
d. Section 2(47)
99. Non-resident means ---------------------

a. a person who is not a resident
b. a person who is a resident
c. For the purposes of sections 92, 93 and 168 includes a person who is not
ordinarily resident within section 6(6)
d. Both (a) and (c)
100. Which of the following can be classified into RNOR/ROR?

a. Individuals
b. HUFs
c. Company
d. Both (a) and (b)
101. POEM, is an ----------- test to determine, whether a company incorporated in a foreign

jurisdiction, is a tax resident of another country.
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a. Internationally acceptable
b. India based
c. Both (a) and (b)
102. As per section 10(2), any sum received by an individual as a member of HUF is
------------------- in the hands of such member.
a. Taxable
b. Exempt
c. Partly Taxable
103. As per section 10(15)(i), what is the maximum exemption available to joint account on
interest from Post office saving bank account?
a. Rs. 2,000
b. Rs. 3,500
c. Rs. 5,000
d. Rs. 7,000
104. Moyhoy, a Sikkim woman marries a Punjabi man on 13-08-2018. She earns Rs. 3,00,000
as income from other sources in the State of Sikkim. The income exempt from tax in the hands
of Moyhoy as per section 10(26AAA) shall be ----------
a. Rs. 3,00,000
b. Rs. 1,50,000
c. Rs. 50,000
d. NIL
105. Voluntary contribution received with a specific direction, that they shall form part of the
corpus of the trust are ----------------
a. Fully exempt
b. Partly exempt
c. Fully taxable
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106. If an assessee grows tomatoes, the market value of which is Rs. 10,00,000 and sells it in
the form of ketchup the market, the maximum amount, which can be deducted from the
business income from sale of ketchup shall be ----------
a. Rs. 10,00,000
b. Rs. 6,00,000
c. Rs. 4,00,000
d. No deduction is allowed
107. What is the deemed income liable to tax in case of income derived from sale of coffee,
grown and cured by the seller in India?
a. 25% of income
b. 35% of income
c. 40% of income
d. 60% of income
108. Madoon club is a trade organization which rendered certain services to its members. Under
which head would such income be taxable?
a. Under head PGBP
b. Income from other sources
c. Capital gains
d. Exempt from tax
109. X had I a capital asset on which he claimed deduction u/s 35AD. Due to an earthquake,
this capital asset was destroyed. The insurance company gave him compensation amounting
Rs.5,00,000. This income would be taxable as ----------------------
a. Income from Capital Gains
b. Profits and gains of business or profession
c. Salaries
d. Income from other sources
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110. Which of the following losses are not allowed as a deduction, in computing income from
Business and Profession?
a. Pre-incorporation losses
b. Capital losses, which are dealt with under the Capital Gains
c. Losses incurred after closure of business
d. All of the above
111. For tax purpose, which are the prescribed method of Accounting?
a. Cash
b. Mercantile
c. Either cash or mercantile, regularly employed by assessee
d. Both cash and mercantile
112. Sunil has leased building from Anuj. He cannot claim deduction of the following?
a. Rent of the building
b. Rates of the building
c. Taxes of the building
d. Capital repairs of the building of a permanent nature
113. Depreciation under the Income-tax Act, is allowed as per ---------------------

a. Written Down Value Method
b. Straight Line Method of depreciation for companies engaged in power generation
c. Both (a) and (b)
d. SLM to all the companies
114. Alpha India Limited, engaged in manufacturing yarn can claim depreciation based on
-------------------
a. Actual cost of the asset, on year to year basis
b. WDV of individual asset
c. WDV of the "Block of Assets"
d. Either WDV or Straight-Line Method at the option of the assessee
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115. An assessee engaged in manufacture of specified article or thing is wondering on which of

the following can he claim additional depreciation. Can you help him?
a. Cases, where cost of P&M has been already allowed as a deduction in
computing PGBP income for earlier years
b. Used Plant and Machinery acquired by him during the year
c. Office appliances
116. Which of the following are excluded from definition of Plant under Income-tax Act, 1961?
a. Tea bushes
b. Livestock
c. Buildings
d. All of the above
117. Block of assets means a group of assets ---------------------

a. Falling within same class of assets which has same rate of depreciation
b. Falling within same class of assets or same rate of depreciation
c. Both (a) and (b)
118. Which of the following categories can form "Block of Assets "under Income-tax Act, 1961?
a. Building, Plant & Machinery
b. Intangible assets
c. Furniture
d. All of the above
119. Amit purchased a building for Rs. 5 crores on June 30, 2018 which shall be used
exclusively for business purpose. The depreciation available thereon shall be?
a. Rs. 25 lakhs
b. Rs. 12.5 lakhs
c. Rs. 50 lakhs
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120. Nalin purchased a building for Rs. 5 crores on June 30, 2018 which would be used for
installing machinery and plant forming part of water supply project, which is put to use to
provide infrastructure facilities u/s 80-IA (4)(1). The depreciation available there on shall be
Rs. ------------------
a. 25 lakhs
b. 12.5 lakhs
c. 50 lakhs
d. 200 lakhs
121. In computing written down value for Income Tax purpose, which of the following are true?
a. Cost of asset acquired is added to the opening block of assets
b. Cost of asset acquired is reduced from the opening block of assets
c. (Sales consideration - Expenses) for assets sold is reduced from block of assets
d. Both (a) and (c)
122. Capital gains on sale of asset forming part of block of depreciable asset can be
----------------
a. Long term capital gain
b. Long term capital gain or short term capital gains
c. Short term capital gain
d. Income from PGBP
123. In case of a new business interest up to the date of commencement of commercial

production is ------------------------
a. Added to the actual cost of the asset
b. Reduced from the actual cost of the asset
c. Claimed as a revenue deduction
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124. A Ltd. purchased an asset Rs. 5 lakhs exclusively for scientific research. Later, it was
transferred for being used in another business, the cost of acquisition added to block of assets
in the non-scientific business would be Rs. ------------------
a. Nil
b. 5,00,000
c. 1,00,000
125. X Limited had an asset with tax WDV of Rs. 5,00,000. It transferred it to its related
company at Rs.10 lakhs, to enable it to claim higher depreciation. The actual cost of assets in
hands of transferee, would be ------------------
a. Actual cost as determined by Assessing Officer
b. Actual cost will be equal to price at which assets are transferred
c. Actual cost will be FMV of assets being transferred on transfer date
126. Anuj transferred a building to Ankush on 01.04.2017 having W.D.V Rs. 10 lakhs and
transferred at Rs. 15 lakhs, on same date leased back such building to Anuj. What would be the
cost of building for depreciation purpose for Ankush?
a. Rs. 10 lakhs
b. Rs. 15 lakhs
c. Rs. 9 lakhs
127. SSG Ltd. an Indian company is a 100% subsidiary of RSG Ltd another Indian company. It
transferred a building having WDV of Rs. 10 lakhs on 01.04.2018 to RSG for Rs. 15 lakhs. The
actual cost for RSG Ltd. would be Rs. ------------
a. 10 lakhs
b. 15 lakhs
c. 9 lakhs
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128. X claimed deduction u/s 35AD on a Building worth Rs. 10 lakhs. During FY 2018-19 he
transferred such Building into his other non-specified business. In such a case, actual cost of
Plant and Machinery shall be reduced by Rs. ---------------
a. 10 lakhs
b. Nil
c. 9 lakhs
129. Which of the following is true for “Block of assets” in the context of computing
depreciation under the head PGBP?
a. It's a group of assets
b. Same rate of depreciation is prescribed for all assets within a group
c. It may be for tangible or intangible assets
d. All of the above
130. Which of the following assessee eligible for additional depreciation?

a. Assessee engaged in business of manufacture or production of Article
b. Assessee engaged in business of generation, transmission or distribution of
power
c. Assessee established an industrial undertaking in notified backward area in the
state of Andhra Pradesh after 01.04.2015 but before 01.04.2020 .
d. All of the above
131. Which of the assets are not eligible for additional depreciation?
a. Ships & Aircraft
b. Second hand Machinery used outside India before acquisition by assessee
c. Any office appliance or road transport vehicle
d. All of the above
132. Which of the assets are not eligible for additional depreciation?
a. Machinery installed in any office premises
b. Where 100% machinery cost is allowed as deduction under PGBP
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c. New machinery used in manufacturing plant

d. Both (a) & (b)
133. Additional depreciation is available at the rate of ------------------------ which are not
engaged in notified backward areas.
a. 10%
b. 20%
c. 40%
134. Sunil Limited, incurred business losses during FY 2018-19 and is wondering whether the
claim of depreciation is mandatory for them. Under Income-tax Act, claim of depreciation is
------------------
a. Mandatory whether or not the assessee claims it
b. Optional
c. Applicable only when assessee has profits
d. None of the above is true
135. Depreciation on assets, used non exclusively for business is ---------------------

a. Allowed proportionately, as AO may determine
b. Not allowed
c. Entirely allowed
136. Profits of composite business are disintegrated into agriculture and non agriculture income
under rule -----------------------------
a. 8
b. 9
c. 6
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137. The due date to deposit amount with Site Restoration Account for the purpose of claiming
deduction u/s 33ABA is ----------------------
a. Within 6 months from end of previous year
b. Before the due date of furnishing the ROI
c. Within six months from end of previous year or before the date of furnishing the
ROI
d. Before end of previous year
138. Quantum of deduction u/s 33ABA shall be -----------------------

a. Lower of amount deposited in the scheme or 20% of profits of such business
b. Lower of amount deposited in the scheme or 60% of profits of such business
c. Lower of amount deposited in the scheme or 50% of profits of such business
139. The amount deposited with Site Restoration Account or Special Account with SBI in
context of section 33ABA should not be utilized for -------------
a. Plant or Machinery to be installed in any office premises
b. For any office appliance (excluding computer)
c. Machinery whose entire cost is allowed as deduction
d. All of the above
140. No deduction u/s 35 shall be admissible in respect of any expenditure incurred on the
--------------------
a. Acquisition of Land
b. Acquisition of Building
c. Revenue expenditure
141. A Ltd. purchased Machinery for Rs. 5 lakhs, which was exclusively used for scientific
research, but later transferred to other business of A Ltd. The cost of acquisition added to block
of assets would be -------------------------
a. Nil
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b. 5 lakhs
c. 1 lakh
142. Unabsorbed capital expenditure on scientific research shall be carried forward for
---------------------------------
a. Indefinite period of time
b. 8 years
c. 12 years
d. Next year
143. Capital expenditure on scientific research can be set off -----------------------------

a. Against PGBP income for other business
b. Balance after PGBP against income under any head for same year
c. Balance carried forward indefinitely
d. All of the above
144. Which of the following businesses setting up and operation are not eligible for deduction
u/s 35AD?
a. Cold chain facility
b. Warehousing facility for storage of agriculture produce
c. Warehousing facility for storage of sugar
a. Warehousing facility for of commercial produce
145. Which of the following business are not eligible for deduction u/s 35AD?
a. Building and operating a hospital in India with at least 10o beds
b. Building and operating a three star hotel in India
c. Developing and building a housing project under a scheme for slum
redevelopment framed by Central Government
d. Developing and building a housing project under a scheme for slum
redevelopment or rehabilitation framed by renowned builder
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a. Setting up and operating an Inland Container Depot notified and approved under
Customs Act, 1962
b. Laying and operating slurry pipeline to transport iron ore
c. Bee-keeping and production of honey
d. None of the above.
a. Developing and building a housing project under affordable housing scheme
framed by the Central Government
b. Production of fertilizer in India
c. Laying and operating a cross-country natural gas pipeline network for distribution,
including storage facilities therein
d. Production of fertilizer outside India.
a. Setting up and operating a semiconductor wafer fabrication manufacturing unit
notified by the Board
b. Developing or maintaining and operating a new infrastructure facility
c. Laying and operating a slurry pipeline for transportation of water
149. Preliminary expenditure is allowed as a deduction in---------------

a. 10 equal instalments
b. Five equal instalments
c. 100% is allowed as a deduction
d. Depreciation is allowed on entire amount
150. Which of the following criterion are considered to ascertain deduction for preliminary
expenditure?
a. Actual amount incurred towards project cost
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b. Higher of 5% of the cost of the project or capital employed in case of an Indian

company
c. 5% of the cost of the Project in case of assessee other than company
d. All of the above
151. A non scheduled private bank issued 1000 zero coupon bond at a discount of Rs. 10 per
bond and the life of bond is 10 years. The amount of deduction available to such bank is
-------------
a. 1,000
b. 10,000
c. Nil
152. Which assessees can claim deduction in respect Of discount on issue of zero-coupon
bond?
a. Infrastructure capital company or fund
b. Public sector or scheduled bank
c. Private sector bank (other than scheduled bank)
d. Both (a) and (b)
153. ABC India ltd. had incurred Rs. 5 lakhs of revenue expenditure, in connection with family
planning amongst employees. What amount would be allowable as deduction?
a. Rs. 5 lakhs
b. Rs. 1 lakh
c. Nil
154. What shall be the deduction available to a company for capital expenditure incurred in
connection with family planning amongst employees?
a. 1/10th of the amount of expenditure in 10 equal instalments
b. 1/5th of the amount of expenditure in five equal instalments
c. Entire amount is allowed as a deduction
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155. What is the time limit on carry forward of unabsorbed capital expenditure on family
planning amongst employees which is incurred by a company?
a. indefinite period of time
b. 8 years
c. 4 years
156. In order to claim a deduction u/s 37(1), which of the following conditions should be
satisfied?
a. Expenditure should be incurred during the previous year
b. Expenditure should be incurred wholly and exclusively for business purpose
c. Expenditure should not be in the nature of capital expenditure
d. All of the above
157. Which of the following conditions are not a pre-condition for allowance of expenditure u/s
37?
a. Expenditure should not be covered u/ss 30 to 36
b. Expenditure should not be of personal nature
c. Expenditure should be of capital nature
d. Expenditure should have been incurred wholly or exclusively for business or
profession
158. Which of the following business expenses are not allowable as deduction?
a. Diwali and Mahurat expenses
b. Payment of telephone charges
c. Annual listing fee to stock exchange
d. Income tax
159. What is the maximum rate of interest which shall be allowed as deduction for payment of
interest made by firm to its partner?
a. When payment is made to dormant partner
b. When payment is made to working partner
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c. When payment is made to non-working partner

d. All of the above
160. In which of the following cases, payment of salary, bonus, commission paid to a partner
shall be allowable as a deduction to firm?
a. When payment is made to dormant partner
b. When payment is made to working partner
c. When payment is non-working partner
d. All of the above
161. In which of the following cases, deduction of section 40A(2) relating to disallowance of
excess payment to related party not attracted ?
a. Payment is in respect of any expenditure
b. Payment have not been made to a specified person
c. Payment is considered excessive or unreasonable as per fair market value of
such services
d. All of the above
162. In which of the following cases, interest and remuneration paid by firm to its partners shall
be allowed as a deduction?
a. There are losses in the firm
b. There are accumulated profits in the firm
c. When such payment is permissible by partnership deed
163. In which of the following cases, deduction shall be allowed during the year of accrual for
any sum in nature of tax, duty, cess or fee under any law which is accrued during the financial
year but not paid by end of financial year?
a. When payment made before the due date of filing return u/s 139(1)
b. When payment is made before the end of assessment year
c. When payment is made after the end of assessment year
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164. Which of the following expenditures are not covered u/s 43B?
a. Employer's contribution to any provident fund
b. Interest on any loan or borrowing from public financial institution
c. Leave encashment from employer
d. Salary
165. Which of the following conditions need to be satisfied in order to tax the trading liability
written back subsequently in next year?
a. Business of assessee should be in existence in that year .
b. Deduction should have been claimed nl the earlier year in respect of such
trading liability
166. Which type of the assessee are required to maintain books of account u/s 44AA of
Income-tax Act, 1961?
a. Person carrying on legal profession
b. Person carrying on medical profession
c. Person carrying on architectural profession
d. All of the above
167. Which type of the assessee are not required to maintain books of account u/s 44AA of
Income-tax Act, 1961?
a. Person engaged in accountancy profession
b. Person engaged in profession of interior decoration
c. Person engaged in profession of engineering profession
d. Person engaged in running a dance school
168. Which of the following are the prescribed books of Account, which are required to be
maintained by persons carrying on specified profession u/s 44AA?
a. Cashbook
b. Ledger
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c. Journal
d. All of the above
169. Which of the following are not the prescribed books of account, which are required to be
maintained by persons carrying on specified profession u/s 44AA?
a. Cashbook
b. Ledger
c. Journal, in case where mercantile method is followed
d. Cash Flow Statement
170. Person who is engaged in__________ shall also maintain additional documents in addition
to prescribed books of account as per rule 6F of Income-tax Rules, 1962.
a. Medical profession
b. Legal profession
c. Engineering profession
d. All of the above
171. Person who is engaged in medical profession shall also maintain the following books in
addition to prescribed books of account?
a. Daily case register in Form No. 3C
b. Inventory under broad heads as on the first and the last day of the previous year
c. Both (a) and (b)
172. In which of the following place, specified books of account should be kept by specified
persons ?
a. Place where he is carrying on the profession
b. Principal place, if profession is carried on at more than one place
c. Registered office of the company
d. Both (a) and (b) above
173. Books of account are required to be kept and maintained for a period of ___________
a. Six years from end of relevant previous year
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b. Eight years from end of relevant previous year

c. Six years from end of relevant assessment year
d. Eight years from end of relevant assessment year
174. A, carries on business in a premise, comprising of building which is owned by him and
which is used for the purpose of carrying on business or profession whose profits are
chargeable to tax. The deemed value of income from such property would be chargeable to tax
under the head
a. Income from House Property
b. Income from Salaries
c. Income from Other Sources
175. Annual value of a property is ___________

a. Inherent capacity of the property to earn income
b. Amount for which the property might be reasonably expected to be let out
c. Both (a) and (b)
176. Income from property used by Trade Union or a Local Authority, which is not registered,
will be ________________
a. Exempt from tax
b. Chargeable to tax as Income from House Property
c. Chargeable to tax as Income from PGBP
d. Chargeable to tax as Income from Other Sources
177. Which of the following is true in respect of standard rent

a. The owner can get rent higher than the standard rent
b. It is fixed under the Rent Liberty Act
c. It is fixed under the Rent Control Act
d. Both (a) and (c)
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178. Expected Rent is higher of________

a. Standard Rent & Actual Rent Received
b. Expected Rent & Actual Rent Received
c. Standard Rent & Actual Rent Received
d. Municipal Valuation & Fair Rental value
179. Municipal taxes, which can be deducted from Gross Annual Value shall be _________
a. Actually paid by the tenant during the previous year
b. Actually paid by the tenant during the assessment year
c. Actually paid by the owner during the previous year
d. Actually paid by the owner during the assessment year
180. Net Annual Value of a property is __________

a. Gross Annual Value + Municipal taxes
b. Gross Annual Value - Municipal taxes - Unrealized rent
c. Average of Gross Annual Value and Municipal taxes
d. Gross Annual Value - Municipal taxes
181. The standard deduction allowed u/s 24 is______________

a. 30% of Net Annual Value
b. 30% of Gross Annual Value
c. 45% of Net Annual Value
d. 45% of Gross Annual Value
182. If the Net Annual Value is Rs 1,00,000, the standard deduction allowed u/s 24
is__________
a. 40,000
b. 50,000
c. 25,000
d. 30,000
183. Deduction for interest on loan in case of self-occupied property is allowed for_______
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a. Acquisition of property
b. Construction of property
c. Repair or reconstruction of property
d. All of the above
184. Choose capital assets from the list of following assets?

a. Stock-in-trade of goods
b. Personal effects
c. Rural agricultural land
d. Urban agricultural land
185. Which of the following shall not be considered as capital assets?

a. Jewellery
b. Shares held by Foreign Portfolio Investors
c. Equity shares held as investment
186. Sinking Equity Fund, was registered as Foreign Portfolio Investor (FPI) and made profit on
sale of certain shares in Indian company during PY 2018-19. Such profit would be taxable as
a. Business income
b. Capital Gains
c. Income from Other Sources
187. Which of the following shall be considered as Rural agricultural land?

a. Agricultural land situated within the jurisdiction of municipality having population
less than 10,000
b. Agricultural land situated within specified distance from municipality
c. Agricultural land situated outside the jurisdiction of municipality and beyond
specified distance
d. Both (a) and (b)
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188. Muneer had some agricultural land, situated within Munerka, which is within the jurisdiction
of municipality having population of__________, such land is Urban agricultural land
a. 20,000 or more
b. I0,000 or more
c. 10,000 or less
189. In order to classify agricultural land is capital asset, distance of agricultural land shall be
measured______from local limits of municipality.
a. By road
b. Aerially
c. (a) or (b), whichever is more beneficial
190. Agricultural land situated in any area within 2 kms, distanced aerially From local limits of
municipality shall lot be considered as capital asset, where the population of municipality or
cantonment board is__________
a. 1,00,001 - 10,00,000
b. 10,001 - 1,00,000
c. More than 10,00,000
191.Which of the following shall not be regarded as transfer?

a. Distribution of assets to shareholders on liquidation of the company
b. Conversion of capital asset into stock-in-trade of business
c. Both (a) and (b)
192. In case, compensation on compulsory acquisition of land is challenged in a Court, and

finally such compensation is enhanced, the enhanced compensation shall be taxable in the year
in which_____________
a. Interim order of the Court is received
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b. Final order of the Court is received

193. On which of the following assets, non-resident may neutralize exchange rate fluctuation as
per first proviso to section 48 while computing capital Pains?
a. Bonds
b. Units of mutual funds
c. Shares/Debentures of Indian company
d. Shares/Debentures of foreign company
194. Exemption u/s 54EE in respect of investment in units of specified funds is available to
______________
a. Individual, HUF
b. Firm
c. Company
d. All assessee
195. Exemption u/s 54GB in respect II long-term capital gains arising on transfer of residential
property, if invested in new manufacturing SME company is available to________________
a. Individual/HUF
b. All assessee
c. Company
d. HUF
196. "Income from Other Sources" is chargeable to tax under _____________

a. Section 55(1)
b. Section 56(1)
c. Section 57(1)
d. Section 58(1)
197. A received Rs 75,000 from a friend as a gift on friendship day. Such receipt
is____________ as "Income from Other Sources"?
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a. Not taxable
b. Taxable
c. Taxable to the extent of 50%
d. Exempt
198. B won 5,000 from horse races. The TDS shall be deducted at the rate of ___________
a. 30%
b. 10%
c. 20%
d. Nil
199. Interest on securities is ______________

a. Taxable only receipt basis
b. Taxable only due basis
c. Either (a) or (b), as per method of accounting adopted by assessee
d. Not taxable
200. Bond Washing Transaction ensure that______________

a. Shifting of interest income is not allowed in certain cases
b. Shifting of interest income is allowed in certain cases
201.Composite rent is chargeable to tax under the head "Income from Other Sources" when
______________
a. It is not chargeable to tax under the head "PGBP"
b. Letting out of property and asset is inseparable
c. Both A and B
202. Which of the following is included under "Transfer" for the purpose of sections 60, 61 and
62?
a. Settlement
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b. Trust
c. Covenant
d. All of the above
203. Clubbing provisions will not be applicable where_________________

a. Remuneration arising to spouse on account of their technical or professional
qualifications (b) Remuneration arising to the spouse solely attributable to the
application of professional knowledge or experience
b. Both (a) and (b)
c. Neither (a) nor (b)
204. As per the clubbing provisions, who among the following are not included in the definition
of "relative" of an individual?
a. Spouse of individual
b. Brother or sister of individual
c. Lineal ascendant or descendant of individual
d. Lineal ascendant or descendant of spouse of individual
205.The notice of demand in respect of tax paid on clubbed income can be served
on__________
a. Transferor
b. Transferee
c. Both (a) and (b)
206. Loss from lotteries is ____________ to be set off from the income earned from winning of
lotteries.
a. Allowed
b. Not allowed
c. Allowed upto 50% of the amount
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207. The loss arising from capital gain can be carried forward to a maximum of__________
a. 4 years
b. 6 years
c. 8 years
d. Indefinitely
208 .As per section 72A, unabsorbed depreciation of an amalgamating company can be carried
forward for___________
a. 4 years
b. 6 years
c. 8 years
d. Indefinite period
209. Sumit has a loss of Rs 4,00,000 under the head "Income from house property". He also
has a business profit of RS 5,00,000 during the year. His taxable income would be__________
a. Rs 9,00,000
b. Rs 3,00,000
c. Rs 1,00,000
d. Rs 8,00,000
210. The Total income after deduction under Chapter VI-A cannot be______________
a. Positive
b. Negative
c. Nil
d. All of the above
211. As per section 80A(6), profits/gains of a business needs to be recomputed, if inter unit
transfer is not made at ___________
a. Market Value
b. Cost Value
c. Higher of (a) or (b)
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212. The maximum deduction allowed u/s 80C, in respect of certain contribution, to individual
aged 45 years is?
a. Rs 50,000
b. Rs 1,00,000
c. Rs 1,50,000
d. Rs 2,00,000
213. Deduction u/s 80C is not available, where the amount paid by an individual for insurance,
is on the life of_____________
a. His/her spouse
b. Dependent parents
c. Independent son
d. Married daughter
214.The maximum deduction allowable u/s 80EE for interest on loan for house property from
financial institution for AY 2019-20 is_____________
a. Rs 50,000
b. Rs 1,00,000
c. Rs 1,50,000
d. Rs 2,00,000
215. Deduction u/s 80DDB is allowed upto_____________ or actual amount paid, whichever is
lower.
a. Rs 20,000
b. Rs 25,000
c. Rs 40,000
d. Rs 75,000
216. Deduction u/s 80E is available in respect of interest paid on loan taken for higher education
of ______________
a. Assessee himself
b. Children of the assessee
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c. Student for whom the assessee is legal guardian

d. All of the above
217. The maximum deduction which can be availed u/s 80GG towards rent paid is
___________
a. Rs 5,000
b. Rs 10,000
c. Rs 15,000
d. Rs 20,000
218. Any person being a _____________is compulsorily required to file return of income if he is
holding any foreign asset or has signing authority in foreign bank account.
a. Resident
b. Non-resident
c. Resident but not ordinarily resident in india
d. Resident and ordinarily resident in India
219. What is the monthly rate of interest u/s 234A?

a. 1.50% per month
b. 1% per month
c. 2 % per month
220. Which of the following losses can be carried forward and set-off, even if return of income is
furnished after the due date prescribed u/s 139(1) ?
a. Only Business losses
b. Only Speculative losses
c. Only loss under the head “House Property”
d. Loss under the head “House Property” and unabsorbed depreciation
221. Every person carrying on business or profession is mandatorily required to apply for PAN,
if its total sale exceeds _____
a. RS 1 lakh
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b. Rs 5 lakhs
c. Rs. 10 lakhs
222.Bonus is taxable on_____________

a. Receipt basis
b. Due basis
c. Receipt or due whichever is earlier
223 .An employee receives children education allowance of Rs. 1000 per month per child for 3
children. Calculate the limit of exemption u/s 10?
a. Rs. 3,000
b. Rs. 2,000
c. Rs.2,400
d. Rs.600
224.The maximum exemption available on HRA in non-metropolitan cities is ______________

a. 10% of salary
b. 40% of salary
c. 50% of salary
d. Not exempt, fully taxable
225. The deductions Allowable u/s 16 are_____________

a. Entertainment Allowance
b. Professional Tax
d. Both (a) and (b)
226. Interest credited to the account of an employee with provident fund is ______________
a. Taxable in the hands of employee
b. Exempt in the hands of employee
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227. The interest received on PPF is _______________

a. Fully taxable
b. Exempt upto 9.5% p.a
c. Fully exempt
d. Not applicable
228. What is the maximum ceiling of exemption available for contribution by the employer to
approved superannuation fund?
a. Rs. 1,00,000
b. Rs 1,50,000
c. Rs 2,50,000
d. Rs 5,00,000
229. As per section 192A, premature withdrawal from Recognised Provident Fund would attract
TDS @____________
a. 5%
b. 20%
c. 10%
d. 0%
230.Interest on securities would attract TDS u/s 193@_____________

a. 5%
b. 10%
c. 20%
231. Who is required to collect TCS?

a. Buyer
b. Seller
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c. (a) or (b)
232. On which of the following items, TCS would be applicable?

a. Sale of cement
b. Sale of alcoholic liquor for human consumption
c. Both (a) and (b)
233. Mr. Gaman want to purchase certain quantity of coal from Mr. Gaman. What would be the
rate of TCS on such sale, when Mr. Gaman gives a declaration that such coal shall be used for
generation of power only?
a. Nil
b. 1%
c. 2.5%
234. What is the due date for payment of TDS by Indian company for the month of February?
a. 7th March
b. 28th February
c. 31st March
d. 15th April
235. What is the due date for filing of quarterly TCS return for the period October-December
during FY-2018-19?
a. 31.01.2019
b. 15.01.2019
c. 31.12.2018
d. 15.02.2018

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7. In case of OPC, the words ‘One Person Company’ shall be mentioned________

8. A change in the name of a company requires_________

9. A company shall not allot or transfer its shares to__________

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11. A promoter is _________of the company.

12. The underwriting commission on shares must not exceed:

13. ___________means a memorandum containing such salient features of a prospectus as

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(d) The public; a body corporate

19. A company making private placement shall issue_______

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21. Share Certificates are to be issued by a company within

22. Sweat equity shares can be issued by a company only to _______

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26. The Securities Premium Account cannot be used for__________

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29. A company may alter the capital clause of memorandum by___________

30. Bonus shares may be issued out of ___________

31. Where the buy-back is authorised by a special resolution, it shall not

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44. A floating charge crystallizes into a fixed charge if_________

45. Quorum for a General meeting of a public company is

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48. An index of members is not required to be maintained by a company if its number of

49. First AGM is to be held within________of close of___________

51. AGM shall be called during business hours, i.e, between________

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(b) More than 5,000;50

58. A person can act as proxy on behalf of members not exceeding_______

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(a) one person companies

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66. The minutes books of general meetings shall be preserved_________

68. In case of an OPC, __________shall be deemed to be the date of the meeting.

69. Dividend can be declared out of

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(d) None of these

74. Dividend (other than interim dividend) is declared by_________.

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(d) Rs. 200 crore

88. The internal auditor shall be_______

89. There are_______parties in a contract of indemnity.

91. A guarantee given by an audit to discharge a loan given to a minor is______

92. The liability of surety arises__________

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95. Gratuitous bailment means a bailment_________

97. Delivery of keys of a car to a friend is an example of ___________

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101. An agent is not liable to the principle if ________

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(c) Mercantile agent

103. Agency coupled with interest__________

105. In case of an accepted bill, the liability of drawer is_________

106. In case of a cheque, the liability of drawer is _________

107. The drawee of a bill of exchange, may accept it by signing on___________

49. First AGM is to be held withinof close of___

132. Auditor is a _ and not a ___.