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Tuesday, November 30, 2021

Human Resource Management Mcqs with answers

November 30, 2021 0
Human Resource Management Mcqs with answers


1. The term ________ refers to the extra benefits provided to employees in addition to the normal compensation paid in the form of wage or salary.

A. Motivation 
B. Fringe benefits 
C. Pension
D. All of the above

2. Fringe benefit given to employees due to __________.

A. Trade union demand
B. Social security
C. To improve human relations
D. All of the above

3. According to Factory Act, 1948, no adult worker can be compelled to work for then ________ hours in any week and working hours can not be more then ________ hours any day.

A. 43, 9 
B. 43, 7 
C. 48, 8 
D. 48, 9 

4. Workers in manufacturing concern mining, plantations, etc. who work for _________ days during a calendar year are eligible for paid vacation.

A. 365
B. 360
C. 240
D. 238

5. According to ________ provisions are there for cleanliness, disposal of waste and affluent ventilation and reoperation, proper lighting, clean drinking water, washrooms, etc.

A. Industrial Dispute Act 
B. Factory Act
C. Minimum Wage Act
D. Workmen's Compensation Act 

6. Under the ________ an organization is liable to pay compensation if there is death of worker due to an employment injury.

A. Factory Act
B. Industrial Dispute Act
C. Workmen's Compensation Act
D. Minimum Wage Act

7. The Employees State Insurance Act __________.

A. 1943
B. 1948
C. 1947
D. 1923

8. Sickness benefits is roughly _________.

A. 30%
B. 40%
C. 50%
D. 60%

9. Maturity benefits are given to.

A. Insured person 
B. Insured women 
C. Insured grand mother 
D. Insured grand father 

10. According to Factories Act employer has to provide canteen in Factory employing more than ______ workers.

A. 250 
B. 150 
C. 350
D. 50

11. Under the employee's deposit linked insurance scheme, 1976 the maximum amount of benefits payable is _______.

A. 40,000
B. 50,000
C. 60,000
D. 70,000

12. Maximum amount of gratuity shall not exceed _______ lakh 

A. 20 
B. 30
C. 40
D. 10

13. Factors affecting retention of employees are _______.

A. Environment 
B. Support
C. Growth
D. All of the above

14. ________ is the reduction in the no. of employees through retirement, resignation or death.

A. Attrition
B. Retention 
C. Elimination
D. Reduction 

15. ________ is the rate of shrinkage in size and number.

A. Retention rate 
B. Detention rate 
C. Attrition Rate 
D. Reduction Rate 

16. ________ is the method of evaluation of the behavior of the employees.

A. Motivation 
B. Performance Appraisal
C. Compensation 
D. None of the above

17. 360 degree performance appraisal technique first used _________ in ________.

A. General Electric, 1892
B. General Motors, 1992
C. General Motors, 1852
D. General Electric Company, 1992

18. Motivation means the process of _______ to work hard.

A. Creating willingness 
B. Induce
C. To inspire
D. All of the above 

19. According to Maslow Motivation is process that starts win _______.

A. Physiological 
B. Physiological deficiency 
C. Need
D. All of the above

20. The basis motivation process is

A. Need --> Goals --> Drives 
B. Need --> Drives --> Goals
C. Drives --> Goals --> Need
D. Goal --> Drives --> Need

21. According to Maslow lower order needs are

A. Social needs
B. Esteem needs 
C. Physiological needs
D. All of the above

22. According to ________ theory it is the unsatisfied needs which can motivate a person to work more efficiently.

A. Herzberg
B. Maslow 
C. Aldelfer
D. Vroom

23. Herzberg theory is also known as _______ theory.

A. Two factor
B. Satisfactory 
C. Three factors 
D. None of these 

24. Herzberg has conducted interview of ________.

A. 200 persons
B. 200 accountants 
C. 200 engineers and accountants
D. 200 engineers 

25. According to Herzberg motivational factors are.

A. Recognition 
B. Job security
C. Working condition 
D. All of the above

26. According to Herzberg motivational factors are _________.

A. Valence x Expectance
B. Valence x Hard Work
C. Instrumentality x Expectance
D. Valence x Instrumentality 

27. Communication is ________ from one person to another person.

A. Understanding of information
B. Production of information
C. Transfer of information
D. None of the above

28. _______ means to convert the ideas into some definite and tangible form.

A. Feedback 
B. Channel 
C. Decoding
D. None of the above

29. Decoding is the reverse of _______.

A. Channel 
B. Feedback
C. Noise 
D. None of the above

30. Faulty translation is ______.

A. Semantic
B. Psychological
C. Faulty organization 
D. Personal barriers

31. In attention is _________ barriers. 

A. Semantic 
B. Psychological 
C. Faulty organization 
D. Personal

32. In delegation there is transfer of _______ authority from superior to subordinate.

A. Power
B. Responsibility
C. Decision making
D. All of the above

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Monday, November 29, 2021

Human Resource Management Mcqs with answers

November 29, 2021 0
Human Resource Management Mcqs with answers


1. _________ is a brief history sheet of an employee's background considering an applicant's academic. social, demographic, work-related background and references.

A. Selection tests
B. Application blank
C. Aptitude tests
D. Personality tests

2. _________ factor is not an internal factors affecting recruitment. 

A. Company's pay package
B. Socio economic 
C. Company's Growth rate
D. Trade Union

3. _______ is not an administrative role of HR Manager.

A. Policy maker
B. Counsellor
C. Welfare officer
D. Mediator

4. ________ is the task of introducing the new emplyoees to the organisation and it's policies.

A. Induction
B. Selection
C. Placement
D. Recruitment 

5. A complain handling regarding any factor involving wages, hours, or conditions of employment is known as __________.

A. Grievance redressal
B. Counselling
C. Collective Bargaining
D. Employee Empowerment

6. Good HR Practices don't help in _________.

A. Job Satisfaction
B. Product satisfaction
C. Team spirit
D. Attract and Retain Talent

7. "Winning the War" has become an important job for ________ managers in recent times in view of the growing competition for possessing requisite skills, knowledge and experience.

A. Human Resources
B. Personnel 
C. Marketing 
D. Top management

8. ________ function of HR manager consists of Supervising motivation and leadership.

A. Directing
B. Procurement
C. Organizing
D. Integration

9. _________ is not an external factor affecting recruitment. 

A. Supply & Demand factors
B. Cost of recruitment
C. Employment rate
D. Labour market conditions

10. _________ is the process of picking individuals who have relevant qualifications to fill jobs in an organization.

A. Selection
B. Recruitment
C. Manpower planning
D. Job Design

11. ________ is not a technique of Recruitment.

A. Consult-in
B. Head-hunting
C. E-recruitment
D. Family Interview

12. _______ is a test which duplicates many of the activities and problems an employee faces while at work.

A. Simulation Test
B. Interest Test
C. Achievement Test
D. Projective Test

13. Recruitment is a _________ process of Human Resource Management.

A. Positive
B. Negative
C. Neutral
D. None of these

14. _________ test involves using a trained evaluator to examine the lines, loops, hooks, strokes, Curves and flourishes in a person's handwriting to assess the person's personality and emotional make-up.

A. Polygraph
B. Graphology
C. Integrity
D. Simulation

15. Human Resource Planning is not __________.

A. Forward looking
B. Proactive
C. Tune with Corporate plan
D. Fixed and rigid

16. HRM is not _______.

A. Pervasive force
B. Comprehensive Function
C. Auxiliary Service
D. For individuals only

17. Playing a role of grievance handling, settling of disputes, handling disciplinary cases, collective bargaining, joint consultation is an administrative role of __________.

A. Welfare Officer
B. Counsellor
C. Legal Officer
D. Advisor

18. Human resource __________ is a measurement of the cost & value of human resource to the organisation.

A. Accounting
B. Audit
C. Management
D. Development 

19. Organising Tasks and responsibilities towards having a productive unit of work is called _________.

A. Job Analysis 
B. Job Design
C. Job Evaluation
D. Job Performance

20. The ________ is the manifestation of thoughts, perception, emotion, determination and imagination.

A. Human Mind
B. Human ambition
C. Human attitude
D. Human attributes

21. Organizations prefer internal sources of recruitment as it:

A. is one of the techniques of motivation
B. improve the morale of the employees
C. minimizes the cost of recruitment
D. All of the above

22. Organizations advertise vacancies through the World Wide Web- the internet, called as:

A. Walk-in
B. E-recruitment
C. Consult-in
D. Business Alliances

23. ________ is not a factor affecting Recruitment.

A. Emplyoyer's Brand
B. Company's Size
C. Market Conditions
D. Employee's Name & Fame

24. _______ are the candidates recommended by the current employees. 

A. Employee referrals
B. Retrenched Employees 
C. Temporary Employees
D. Dependent Employees

25. _________ measure an individual's potential to learn skills-clerical, Mechanical, Mathematical, etc.

A. Simulation
B. Personality tests
C. Aptitude Tests
D. Projective Test

26. __________ administration is the process of dividing how much an employee should be paid.

A. Compensation
B. Performance
C. Incentive
D. Welfare

27. Growth of HRM in India has different phases like, Early; Legal; Welfare and __________. 

A. Recent Phase
B. Development Phase
C. Improved phase
D. Later Phase

28. ________ is not a forecasting technique.

A. Judgemental method
B. Trend Analysis
C. Mathematical method
D. Graph method

29. In the ________ interview the recruiter asks questions as they come to their mind and questions do not follow specific format or structure.

A. Directive
B. Situational
C. Behavioural
D. Non-directive

30. ________ is not a procurement function of HRM. 

A. HR Planning
B. Career Planning
C. Placement
D. Job analysis

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Audit & assurance Mcqs with answers

November 29, 2021 0
Audit & assurance Mcqs with answers


1. Plane should be made.

(a) By acquiring the knowledge of the clients business 
(b) checking the adequacy of internal control
(c) Getting knowledge about accounting system, method and policies
(d) None of the above

2. For the user, the auditor's opinion is an assurance as of the future viability of the enterprise or the efficiency or effectiveness with which the management has conducted the affairs of the enterprise.

(a) True
(b) False

3. Documentation is needed because. 

(a) It aids in the supervision and review of the audit work. 
(b) It aids in the planning and performance of the audit.
(c) Both A & B
(d) None of the above

4. The form and content of documentation is

(a) Ready made 
(b) Tailor made
(c) The need in particular circumstances for direction supervision and review of review of work performed by the assistants 
(d) All of the above

5. Documentation will said to be as adequate if it is.

(a) properly organized and detailed 
(b) Of every matter whether material or not
(c) Non standardized
(d) None of the above

6. Permanent nature audit file normally contains 

(a) Appointment letter for the current year
(b) Memorandum and articles of association
(c) Management representation letter of current year
(d) Current year important abstracts of minutes of the meeting of the BOD

7. Current nature audit file normally contains 

(a) Current year's audit findings
(b) previous years audited significant findings
(c) Both A & B
(d) Can't say

8. Working papers are the property of.

(a) Management 
(b) Auditor
(c) Shareholders
(d) None of the Above

9. The auditor should maintain his records relating to audit and other work done including routing correspondence and other papers for a minimum period of

(a) 5 years
(b) 8 years
(c) 10 years
(d) cant say

10. Consider the following stages, an auditor has to undergo before commencing a new audit __________.

1). Ascertain the scope of audit work and prepare an agreement with the client
2). Preparing Audit program. 
3). Obtain the Knowledge about the business of his client
4). Audit conclusions and reporting

Select the correct answer using the codes given below:

(a) 1, 2, 3 And 4
(b) 1, 3, 2 And 4
(c) 2, 1, 3 And 4
(d) 3, 1, 2 And 4

11. _________ is necessary for an effective, efficient and timely audit 

(a) Audit evidence
(b) Audit examination
(c) Audit planning
(d) All of the above

12. Documents collected during the statutory audit are the property of________.

(a) Management 
(b) Share Holders 
(c) Company Auditor 
(d) None of the above

13. Consider the following document and arrange them in the correct sequence in which an auditor prepares these documents.

1. Working Papers 
2. Audit Programme
3. Audit Report

(a) (2), (1), (3)
(b) (1), (2), (3)
(c) (3), (2), (1)
(d) (3), (1), (2)

14. A written plan containing the details regarding the conduct of a particular audit is called

(a) Audit Programme
(b) Audit Memorandum 
(c) Audit Note Book 
(d) None of these

15. Which of the following is content of permanent Working paper file?

(a) Audit Programme 
(b) Bank Reconciliation statement
(c) Confirmation letters 
(d) None of above

16. Audit programme is prepared by ____________.

(a) Auditor
(b) Client 
(c) Audit Assistance
(d) Auditor and audit Assistants

17. The Working papers which auditor prepare for financial statement Audit are ________.

(a) Evidence for audit conclusions
(b) Owned by the client
(c) Owned by the auditor
(d) Retained in auditor's office until a change in auditors

18. Which of the following best describes the primary purpose of the audit programme preparation? 

(a) To Detect errors and frauds 
(b) To gather sufficient appropriate evidence
(c) To comply which GAAP
(d) To assess audit risk

19. Which of the following is not an advantage of the preparation of working paper 

(a) To provide a basis for review of audit work 
(b) To provide a basis for subsequent audits
(c) To ensure audit work is being carried out as programme
(d) To provide a guide for a guide for advantages another client a similar issues

20. The auditor's permanent working file should not normally includes ________.

(a) Extracts from client's bank statement
(b) Past year's financial statement
(c) Attorney's letters
(d) Debt agreements

21. For what minimum period should audit Working papers retained by audit firm 

(a) For a period of ten years 
(b) For the period of the audit firm existence
(c) For a period auditor opines them to be useful in serving the clients 
(d) None of above

22. The current file of auditor's working papers, generally should includes 

(a) A flow chart of internal control
(b) A copy of financial statement
(c) Organization charts
(d) Copies of bonds and debentures

23. All the papers pertaining to the year under audit are filed in the

(a) Permanent file 
(b) Current file
(c) Audit file
(d) All the above

24. __________ is the owner of working papers.

(a) Auditor
(b) Owner of the firm
(c) Workers of the firm 
(d) none of the above

25. __________ is the key element in planning, and determining the audit procedure.

(a) Audit planning
(b) Determination of audit procedure 
(c) Collection of audit evidence
(d) None of the above

26. Planning includes

(a) Deciding the nature, timing and extent of then audit procedure to be applied. 
(b) Collection of proofs which are the basis for audit conclusions.
(c) Determination of audit procedures to be applied
(d) A and C

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Audit & assurance Mcqs with answers

November 29, 2021 0
Audit & assurance Mcqs with answers


1. Audit Plans should be based on knowledge of the client's

(A) Profits
(B) Net worth
(C) Business
(D) Reputation

2. The risk of fraud increases when

(A) The working capital is high
(B) The cash sales are high
(C) The auditors remain the same
(D) Management is in the hands of a single person

3. ________ papers is the link between the client's records and the auditor's report.

(A) New
(B) Working
(C) Loose
(D) Ruled

4. Which of the following is not an advantage of the preparation of working paper?

(A) To provide a basis for review of audit work,
(B) To provide a basis for subsequent audits,
(C) To ensure that audit work is being carried out as per programme,
(D) To provide a guide for advising another client on similar issues.

5. Audit under statute means:

(A) An audit ordered by the Government,
(B) An audit where duties, rights etc. of the auditor are laid down by law,
(C) An audit ordered by the Courts,
(D) An audit under legal contract.

6. Which of the following is NOT the part falling in the General Preparation step for Preparation before commencement of Audit?

(A) Preparation of up to date records,
(B) Finalize the scope of work, type of audit, Audit fees etc.,
(C) Obtain appointment letter,
(D) Gather the knowledge of client's business.

7. ______ is a detailed statement giving full instructions, hints and guidance to audit staff as to how they should proceed with the work and make it dependable.

(A) Audit Programme
(B) Audit Working Papers
(C) Audit Notebook
(D) Audit Files

8. Which one of the following is NOT the Advantage of Audit Programme?

(A) It promotes the division of work over audit staff in a well-organized manner, 
(B) The work may become too mechanical, 
(C) It provides audit assistants with a clear set of instructions about their duties, 
(D) It enables the auditor to keep constantly in touch with the work done and general progress of the audit

9. _______ is maintained by the audit assistants to note down all those unclear queries, which he may come across in the course of audit and on which he requires further clarification & explanation.

(A) Audit Programme
(B) Audit Working Papers
(C) Audit Files
(D) Audit Notebook

10. It has been rightly said that the auditor is often judged by character of _____ prepared by him or under his direction.

(A) Audit Notebook
(B) Audit Files
(C) Audit Working Papers
(D) Audit Programme

11. Following is the specimen copy of _______

Sr. no.

Voucher No.


Account Head

Amount (RS)

Queries / Remarks

How Disposed of / Solved




Conveyance Expenses

RS 150

1] Correct Amount is RS 1500

2] Authorised signature is missing

1] Entry Rectified

2] Signature obtained

(A) Audit Working Papers
(B) Audit Files
(C) Audit Programme
(D) Audit Notebook

12. The overall audit plan and the Audit programme is the responsibility of ________.

(A) Auditor
(B) Assistant of Auditor
(C) Accountant of Client
(D) Client

13. Adequate _________ helps to ensure that appropriate attention is devoted to important areas of the audit; ensure that potential problems are promptly identified and utilise the assistants properly.

(A) Audit Documentation
(B) Audit Planning
(C) Audit Evidence
(D) Work performed by others

14. Sales to Mr. A for Rs.11500 correctly recorded in sales day book but wrongly debited to A's Account as Rs.10500.This is error of _________.

(A) Error of Omission
(B) Error of Commission
(C) Error of Principle
(D) Compensating Error

15. An Auditor should __________.

(A) Surrender his working papers to the client at the end of the audit.
(B) Surrender his working papers to the client at the termination of his appointment with the client.
(C) Never give his working papers to the client.
(D) None of the above.

16. An audit 'conducted to a particular date within an accounting period' is known as _________.

(A) A Final Audit
(B) A continuous Audit
(C) An Interim Audit
(D) A procedural Audit

17. The Comprehensive and Constructive examination of a company's organizational structure, plans, policies and objectives, resources and use of manpower and physical facilities is

(A) Management Audit
(B) Internal Check 
(C) Operational Audit
(D) Internal Audit

18. Manipulation of accounts to show better performance of management is called

(A) Secret Reserve
(B) Window dressing
(C) Management Fraud
(D) Employment fraud

19. Misappropriating one of the amounts out of two or three identical receipts and crediting the accounts of first customer by the receipt from second customer. This process is called

(A) Window Dressing
(B) Teeming & lading
(C) Compensating error
(D) None of the above

20. State which of the following statement is TRUE

(A) Auditing is a critical examination of books of account with a view to establish their accuracy and correctness
(B) Auditing of account is optional in case of a private limited company
(C) Auditing of accounts is optional in case of public limited company, 
(D) Incorrect totaling of ledger account is an example of error of principle

21. Financial statements need to be prepared in accordance with:

(A) Relevant statutory requirements 
(B) Accounting standards issued by the Institute of Chartered Accountants of India
(C) Guidance Notes issued by the Institute of Chartered Accountants of India
(D) All the above

22. Consider the following documents

1. Audit notebook
2. Audit report
3. Audit programme
4. Audit appointment Letter

What is the correct sequence in which the above documents are prepared?

(A) 1,2,3,4
(B) 3,1,4,2
(C) 2,3,1,4
(D) 4,3,1,2

23. Continuous Audit is suitable for the organization

(A) Where the final accounts are to be presented immediately after the close of financial year
(B) Where internal controls are not very effective
(C) Where volume of transaction is very large
(D) In case of All the above

24. Installation charges of machinery wrongly debited to repairs and maintenance account. This is error of ________.

(A) Principle
(B) Compensating Error
(C) Clerical Error
(D) Duplication Error

25. Which of the following is not recorded in audit note book?

(A) Audit programme
(B) Accounting statistics
(C) Important balances
(D) Analysis of transactions and balances

26. Figures may be altered in the accounts which have already been audited is the disadvantage of _________.

(A) Partial Audit
(B) Interim Audit
(C) Balance sheet Audit
(D) Final Audit

27. Goods returned by customer for Rs.5000/- were taken into stock but no entry was passed. It was ________.

(A) An error of Principle
(B) An error of Omission
(C) An error of commission
(D) None of these

28. In context of Qualities of a Good Auditor, Diligence refers to ________.

(A) Knowledge of relevant laws
(B) Honesty
(C) Extremely careful and meticulous
(D) Loyalty

29. Primary responsibility of prevention and detection of frauds is of the ______ as well as these charged with governance.

(A) Management
(B) Auditor
(C) Government
(D) Investor

30. In planning and performing examination, the _________ should take into consideration the risk of material misstatement of the financial information caused by error or fraud.

(A) Investor
(B) Auditor
(C) Government
(D) Management

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Sunday, November 28, 2021

Elements of direct taxes Mcqs

November 28, 2021 0
Elements of direct taxes Mcqs

MCQs: 2011-12

1. Leave encashment received during continuity of employment is __________.

a. Taxable only for Government employees
b. Taxable only for Non-Government employees
c. Taxable for all employees
d. Not taxable for all employees

2. Gift of Rs.7,00,000 received on 10 July, 2019 through account payee cheque from a non-relative regularly assessed to income-tax is ___________.

a. A capital receipt not chargeable to tax
b. Chargeable to tax as income from other sources
c. Chargeable to tax as business income
d. Exempt up to Rs.50,000 and balance chargeable to tax under other sources

3. Krishiv received Rs.1,40,000 from his friend on the occasion of his birthday.

a. Entire amount of Rs. 1,40,000 is taxable.
b. Rs.50,000 is taxable. 
c. The entire amount is exempt. 
d. None of the above.

4. On 10-10-2019, Mrs. Malti has received gift of Rs. 1,16,000 from cousin of her mother. 

a.Entire amount of Rs. 1,16,000 is taxable 
b. The Entire amount is exempt
c. Chargeable to tax as business income 
d. A Capital receipt not chargeable to tax

5. Mr. Abhijit, Citizen of US and a person of Indian Origin comes to India for the very first time on 29-8-2019 and leaves India on 1-4-2020. His Residential status for the P.Y. 2019-20 is __________.

a. Resident and Ordinarily Resident in India. 
b. Resident but not Ordinarily Resident in India. 
c. Non Resident in India.
d. Extra Ordinarily Resident in India

6. During previous year 2019-20, the affairs of X (HUF), a Hindu Undivided Family, are partly managed from India and partly from London. Mr. X, Karta of X (HUF), is non-resident in India for the assessment year 2020-21. What would be the residential status of X (HUF), for the Assessment Year 2020-21?

a. Non-resident in India 
b. Resident & ordinarily resident in india
c. Resident but not ordinarily resident in India
d. Extra ordinarily resident in India

7. Which one of the following is not an income deemed to accrue or arise in India? 

a. Capital gain on transfer of capital asset in India 
b. Income from business connection in India
c. Profit from business in London which is controlled from Mumbai
d. Royalty received from Government of India

8. Mr. Munaf, an Indian citizen, leaves India for the first time on 30-05-2019 for going on a world tour and does not come back to India in P.Y. 2019-20. His residential status for the Assessment Year 2020-21 would be -

a Non-Resident in india
b. Resident & Ordinarily Resident in India
c. Resident but not Ordinarily Resident in India 
d. Extra Ordinarily resident in India b

9. Mr. Milan, who is non-resident in India has earned following incomes during previous year 2019-20 Salary from an Indian company received in Canada (1/2 for rendering service in India) Rs. 2,50,000.

- Profit on sale of property in Delhi (1/3 received in Canada) Rs.3,00,000. 
- Income from agriculture in India received in Canada Rs.50,000.

What is Gross Total Income of Mr. Milan for P.Y. 2019-20 ?

a. Rs.6,00,000
b. Rs.5,50,000
c. Rs.4,75,000
d. Rs.4,25,000

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Elements of direct taxes Mcqs with answers

November 28, 2021 0
Elements of direct taxes Mcqs with answers


1. Salary for exemption of leave encashment shall be taken as:

(A) last drawn Salary
(B) Average Salary of 10 months immediately preceding the month of retirement
(C) average Salary of 10 months immediately preceding the date of retirement.
(D) None

2. The maximum exemption in case of leave encashment shall be: 

(A) Rs. 2,40,000
(B) Rs. 3,50,000
(C) Rs. 3,00,000
(D) Rs. 5,00,000

3. An employee availed the exemption of leave encashment of Rs.1,00,000 in the past. He received from the second employer a sum of Rs. 2,50,000 as encashment of leave. He will be entitled to exemption to the extent of:

(A) Nil
(B) Rs. 2,50,000
(C) Rs. 2,00,000
(D) Rs. 1,40,000

4. Compensation received on voluntary retirement is exempt under 10 (10 C) to the maximum extent of: 

(A) Rs. 2,40,000 
(B) RS. 3,50,000 
(C) Rs. 5,00,000
(D) Rs. 1,00,000

5. A is entitled to Children education allowance @ Rs. 80 p.m. per child for 3 children amounting Rs.240 p.m. It will be exempt to the extent of: 

(A) Rs. 200 p.m.
(B) Rs. 160 p.m. 
(C) Rs. 240 p.m.
(D) Rs. 100 p.m.

6. R is entitled to Hostel expenditure allowance for his 3 children @ Rs. 200 per child. The exemption in this case shall be:

(A) Rs. 600 p.m. 
(B) Rs. 400 p.m. 
(C) Rs. 300 p.m.
(D) Not

7. R is entitled to a transport allowance of Rs.3,000 p.m. for commuting from his residence to office and back. He spends Rs.2,600 p.m. The exemption shall be: 

(A) Rs.1,000 p.m 
(B) Rs. 800 p.m. 
(C) Rs. 600 p.m.
(D) Not Available

8. R is entitled to Rs. 6,000 as medical allowance He spends Rs. 4000 on his medical treatment and Rs. 1000 on the medical treatment of his major son not dependent on him. The exemption in this case shall be: 

(A) Rs. 4,000
(B) Rs. 5,000
(D) Rs. 2,000

9. R is an employee of a Transport Company. He is entitled to transport allowance of Rs. 6,000 p.m. He spends Rs. 4,000 every month. The exemption shall be:

(A) Rs. 6,000 p.m. 
(B) Rs. 4,000 p.m. 
(C) Rs. 4,200 p.m.
(D) Rs. 5,000 p.m.

10. Entertainment allowance in case of Government employee is: 

(A) fully exempt
(B) fully taxable
(C) exempt upto certain limits mentioned in section 16(ii) 
(D) first included in full in gross salary and thereafter deduction allowed from gross salary under section 16(ii)

11. For claiming deduction of entertainment allowance Government employee includes:

(A) Central and Sate Government employee 
(B) State Government Employee
(C) Central and State Government Employees and employees of local authority 
(D) Central and State Government employees, employees of local authority and employees of statutory corporation

12. During the previous year, the employee was reimbursed Rs. 24,000 as medical expenses incurred by him which includes Rs. 7,000 spent in Government hospital. The taxable perquisite in this case shall be: 

(A) Rs.9,000
(B) Nil
(C) Rs. 2,000
(D) Rs. 24,000

13. R, who claimed the exemption of gratuity in the past to the extent of Rs. 3,50,000, was entitled to the gratuity from the present/second employer amounting to Rs. 2,00,000 in the previous year 2019-20. R shall be entitled to exemption to the maximum extent of: 

(A) Rs.6,50,000
(B) Nil
(C) Rs. 2,00,000
(D) Rs. 3,00,000

14. R worked with a previous employer for 3 years but was not entitled to any gratuity. He worked with the present employer for 8 years and 7 months. The completed years of service for calculating exemption of gratuity shall be taken as:

(A) 11 years
(B) 8 years
(C) 9 years
(D) 12 years

15. For purpose of calculating exemption of gratuity, salary shall include: 

(A) Fixed commission 
(B) Commission if it is a fixed percentage on turnover 
(C) None of these two
(D) All

16. Un-commuted pension received by a Government employee is: 

(A) Exempt
(B) Taxable
(C) Partially taxable
(D) All

17. Commuted pension received shall be fully exempt in case of:

(A) Government employee 
(B) Government employee or an employee of local authority
(C) Government employee or an employee of local authority or an employee of statutory corporation 

18. An employee who was not entitled to gratuity got 30% of his total pension commuted in the past. He wishes to commute another 25% of his total pension in the previous year. He shall be allowed exemption to the extent of: 

(A) Nil
(B) 1/3
(C) 2/3
(D) 2/6

19. Deduction of Entertainment Allowance is available only to 

(A) All employees
(B) Government employees
(C) Non-government employees
(D) Private company's employees

20. Maximum ceiling limit for exemption u/s 10(10) in respect of gratuity for employees covered by payment of Gratuity Act, 1972 is

(A) 10,00,000
(B) 5,00,000 
(C) 3,50,000 
(D) 20,00,000

21. HRA paid to an employee residing in Patna is exempt up to lower of actual HRA, excess of rent paid over 10% of salary and

(A) 30% of salary
(B) 40% of salary
(C) 50% of salary
(D) 60% of salary

22. R, a chartered accountant is employed with R Ltd., as an internal auditor and requests the employer to call the remuneration as internal audit fee. R shall be chargeable to tax for such fee under the head.

(A) Income from Salaries 
(B) Profit and gains from Business and Profession 
(C) Income from other Sources
(D) All

23. R Ltd., pays a salary of Rs. 2,90,000 to his employee G and undertakes to pay the Income Tax amounting to Rs. 3,090 during the previous year 2019-20 on behalf of G. The gross Salary of G shall be:

(A) Rs. 2,90,000
(B) Rs. 2,93,090
(C) Rs. 2, 86,910
(D) Rs. 2,55,000

24. R was employed on 1-7-2013 in the grade of Rs.15,000-400-17,000-500-22,000. His gross salary for the assessment year 2020-21 shall be

(A) Rs. 1,99,200 
(B) Rs. 2,04,000 
(C) Rs.2,08,500 
(D) Rs. 2,10,000

25. R was employed from 1-8-2016 in the grade of Rs.15,000-400-17,000-500-22,000 and his salary was fixed at Rs.16,200 from the date of joining. His gross salary for the assessment year 2020-21 shall be.

(A) Rs. 1,99,200
(B) Rs. 2,04,000 
(C) Rs.2,08,000 
(D) Rs. 2,10,000

26. R, who is entitled to a Salary of Rs. 10,000 p.m., took an advance of Rs. 20,000 against the salary in the month of March 2020. The gross salary of R for assessment year 2020-21 shall be: 

(A) Rs. 1,60,000
(B) Rs. 1,40,000
(C) none of these two
(D) Rs. 1,80,000

27. R, who is entitled to Salary of Rs.10,000 p.m. took advance salary from his employer for the months of April and May 2020 along with Salary of March 2020 on 31-3-2020. The gross salary of R for assessment year 2020-21 shall be:

(A) Rs. 1,20,000 
(B) Rs. 1,40,000 
(C) Rs. 2,00,000
(D) None Of These  

28. R is employed with G Ltd., at a salary of Rs. 10,000 p.m. As G Ltd., was in financial crisis, it paid the salary of January 2020 to March 2020 to R only in July 2020. The gross salary of R for assessment year 2020-21 shall be:

(A) Rs.1,20,000
(B) Rs.90,000
(C) Rs. 45,000
(D) None of these three

29. Salary of R is Rs. 10,000 p.m. R had taken Salary in advance for the months of April 2019 to June 2019 in March 2019 itself. The gross salary of R for assessment year 2020-21 shall be: 

(A) Rs. 1, 20,000 
(B) Rs. 90,000 
(C) Rs. 40,000
(D) None of these three

30. Salary of R becomes due on 1st of next month and it is paid on 7th of that month. For assessment year 2020-21, the salary of R shall be taken from:

(A) April 2019 to March 2020 
(B) March 2019 to February 2020 
(C) None of these 
(D) All of these

31. R who was working with another company joined the present employer w.e.f. 1-5-2019 at a Salary of Rs. 10,000 p.m. His salary becomes due on first of next month. He was also entitled to a pension of Rs. 4,000 p.m. from his former employer as he retired on 31-3-2019. His gross salary for assessment year 2020-21 shall be:

(A) Rs. 1,10,000.
(B) Rs. 1,58,000
(C) Rs. 1,48,000
(D) Rs. 1,50,000

32. The Government of India announced increase in the D.A on 15-3-2019 with retrospective effect from 1-5-2018 and the same were paid on 6-4-2019. The arrears of D.A shall be taxable in the previous year: 

(A) 2018-19
(B) 2019-20
(C) In respective previous years to which these relate 
(D) None

33. Gratuity shall be fully exempt in the case of:

(A) Central and State Government employee
(B) Central and State Government employees and employees of local authorities 
(C) Central and State Government employee, employee of local authorities and employee of Statuary Corporation

34. An employee is covered under Payment of Gratuity Act, 1972: 

(i) Salary for purpose of calculating 15 days salary for each completed year of service shall be:

(A) Last drawn Salary
(B) Average Salary of last 10 months 
(C) Average Salary of last 3 completed years.
(D) All

(ii) Salary for the above purpose shall: 

(A) Include dearness allowance and fixed percentage of commission on turnover achived by the employee. 
(B) Not include Dearness allowance
(C) Include dearness allowance the extent the terms of employment provide 
(D) shall include dearness allowances to the extent the terms of employment so provide.

(iii) If the employee has completed service of 16 years 6 months and 5 days, the number of completed year shall be taken as:

(A) 16 years
(B) 17 years
(C) 15 years
(D) 16 years 6 months and 5 days.

(iv) If he has completed exactly 16 years and 6 months, the completed year shall be: 

(A) 16 Years 
(B) 17 Years 
(C) 10 years
(C) 16 Years and 6 months

(v) For purpose of computing 15 days' salary, the number of days in a,month shall be taken as:

(A) 30 days
(B) 26 days
(C) 31 days
(D) 25 days

(vi) The maximum exemption of gratuity shall be:

(A) Rs. 3,00,000 
(B) Rs. 3,50,000 
(C) Rs. 3,50,000 If he retires before 24-05-10 and Rs. 10,00,000 if he retires on or after 24-05-10
(D) Rs. 20,00,000

35. Alia Bhatt, an actress is employed in Chopra films where she is paid monthly remuneration of Rs.2,00,000 She acts in various films produced by various producers. Remuneration for acting in such films is directly paid to Chopra films by different producers. Rs.2,00,000 will be taxabl under which head

(A) Salary
(B) Other sources
(C) Income from profession
(D) Not taxable

36. Income tax paid by the employer on non-monetary perquisite on behalf of employer is _____ in the hands of employee

(A) Exempt
(B) Taxable
(C) Partly exempt, partly taxable
(D) Not applicable

37. Salary is taxable on 

(A) Due basis
(B) Receipt basis
(C) Due basis or receipt basis whichever is earlier 
(D) Not taxable

38. Transport allowance granted to an employee to meet his expenditure for commuting between place of residence and place of his duty is

(A) Fully taxable
(B) Fully exempt
(C) Partly taxable, partly exempt
(D) None of the above

39. Children Education Allowance is exempt to what extent

(A) Rs.100 per month per child
(B) Rs.50 per month per child
(C) Rs. 20 per month per child
(D) Rs. 300 per month per child

40. Which of the following allowances are fully exempt

(A) Allowances paid by the government to citizen of India outside India
(B) Allowances to High Court judges
(C) Allowances paid by UNO to its employees
(D) All of the above

41. State whether true or false.

"When gratuity is received from 2 or more employers in the same year then the aggregate amount of gratuity exempt from tax cannot exceed Rs.20,00,000 in case covered by payment of Gratuity Act, 1972."

(A) True
(B) False

42. Exemption amount in the case of leave salary received at the time of retirement government employees is the least of

(i) Rs. 3,00,000
(ii) Leave salary actually received
(iii) average salary
(iv) Cash equivalent of leave to the credit of employee at the time of retirement or death

(A) 8 months
(B) 2 months
(C) 10 months
(D) 12 months

43. Medical facilities provided by employee to employer is fully taxable except

(A) Treatment done in hospital maintained by employer 
(B) Treatment done in hospital maintained by government
(C) Both (a) and (b) 
(D) Treatment done in private hospitals

44. The employee is provided with furniture costing Rs. 1,50,000 alongwith house w.e.f. 1-4-2019. The value of the furniture to be included in the valuation of unfurnished house shall be:

(A) Rs. 15,000
(B) Rs. 12,500
(C) RS.18,750
(D) Rs. 22,500

45. Salary of an employee is Rs. 2,00,000. Rent paid by the employer for the unfurnished house provided to employee at mumbal is Rs. 3,000 p.m. The employer charges Rs. 2,000 p.m. as rent from the employee. The valuation of this perquisite shall be:

(A) Rs. 16,000
(B) Rs. 6,000
(C) Rs. 12,000
(D) Nil

46. The Gardner, Sweeper and the watchman are employed by the employee but their salary of Rs. 500 p.m. per person is paid by the employer. The valuation of this perquisite shall be:

(A) Rs. 4,320
(B) Rs. 18,000
(C) Rs. 1,960
(D) Rs. 6,000

47. R Ltd. owns a house which has been provided to its employee along with the Gardner. The Gardner salary paid shall be:

(A) Tax free perquisite
(B) Taxable to the extent of Rs. 120 p.m.
(C) Fully taxable
(D) Tax free perquisite but will be added to the fair rental value

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