Master Guide: Advanced MCQs for JKSSB Finance Accounts Assistant (2026)
Success in the JKSSB Finance Accounts Assistant (FAA) exam isn't just about knowing the basics; it’s about mastering the intricate details of Accountancy, the complex sections of the J&K Reorganisation Act, and the deeper concepts of Economics and Statistics.
To ensure you are ready for the merit list, we have curated a comprehensive guide featuring 50+ Advanced MCQs. These questions go beyond simple definitions and test your application of concepts, mirroring the difficulty of the actual exam.
Pro Tip: Before you begin, assess your current standing with a full-length test. We recommend the JKSSB Finance Accounts Assistant Mock Test Series 2026 for a realistic exam simulation.
Part 1: Advanced Accountancy & Bookkeeping
Focus: Corporate Accounting, Partnership Adjustments, Taxation, and Standards.
Q1. When shares are forfeited, the Share Capital Account is debited with:
a) Paid-up value of shares
b) Called-up value of shares
c) Face value of shares
d) Issue price of shares
Answer: b
Solution: When shares are forfeited, the Share Capital Account is debited with the amount "called up" so far, not the full face value (unless fully called up) or the paid-up amount.
Q2. Under the Fluctuating Capital Account method, which of the following is credited to the Partner’s Capital Account?
a) Interest on Drawings
b) Share of Loss
c) Interest on Capital
d) Drawings
Answer: c
Solution: In the Fluctuating Capital method, all adjustments are made in the Capital Account. Items increasing the partner's equity (like Interest on Capital, Salary, Profit share) are credited, while Drawings and Interest on Drawings are debited.
Q3. Which Accounting Standard (AS) deals with the 'Cash Flow Statement'?
a) AS-1
b) AS-2
c) AS-3
d) AS-10
Answer: c
Solution: AS-3 (Revised) specifically deals with the preparation and presentation of Cash Flow Statements. AS-2 is for Inventory Valuation, and AS-10 is for Property, Plant, and Equipment.
Q4. If the closing stock is shown inside the Trial Balance, where is it recorded in the Final Accounts?
a) Trading Account and Balance Sheet
b) Trading Account only
c) Balance Sheet only
d) Profit & Loss Account only
Answer: c
Solution: If Closing Stock appears inside the Trial Balance, it means the entry for opening stock and purchases has already been adjusted (Adjusted Purchases). Therefore, it is recorded only on the Assets side of the Balance Sheet.
Q5. A major repair to a second-hand machine purchased recently to bring it into working condition is treated as:
a) Revenue Expenditure
b) Capital Expenditure
c) Deferred Revenue Expenditure
d) General Expense
Answer: b
Solution: Any expenditure incurred to bring a fixed asset into its usable condition (even repairs on second-hand machinery before first use) is capitalized and added to the cost of the asset.
Q6. Under the GST regime, the tax collected on the inter-state supply of goods is known as:
a) CGST
b) SGST
c) IGST
d) UTGST
Answer: c
Solution: IGST (Integrated Goods and Services Tax) is levied on all inter-state supplies of goods and services. It is collected by the Centre and then apportioned.
Q7. The 'Convention of Conservatism' implies:
a) Anticipate all profits but ignore all losses
b) Anticipate all losses but ignore all unrealized profits
c) Record assets at market value
d) Keep the books secret
Answer: b
Solution: Conservatism (or Prudence) states that "anticipate no profit and provide for all possible losses." This is why closing stock is valued at cost or Net Realizable Value (NRV), whichever is lower.
Q8. When a new partner brings goodwill in cash, it is credited to the old partners' capital accounts in:
a) Old Profit Sharing Ratio
b) New Profit Sharing Ratio
c) Sacrificing Ratio
d) Gaining Ratio
Answer: c
Solution: Premium for Goodwill brought by a new partner is compensation to old partners for the share of profit they surrender. Hence, it is distributed in the Sacrificing Ratio.
Q9. Which of the following errors is NOT disclosed by the Trial Balance?
a) Error of Casting
b) Error of Principle
c) Error of Posting to wrong side
d) Error of Omission of one aspect
Answer: b
Solution: An Error of Principle (e.g., treating Capital Expenditure as Revenue Expenditure) does not affect the agreement of the Trial Balance because the debit and credit amounts remain equal, even if the account head is wrong.
Q10. The concept of 'Deferred Revenue Expenditure' is associated with expenses that:
a) Are small in amount
b) Are incurred every year
c) Provide benefit for more than one accounting period
d) Are illegal in nature
Answer: c
Solution: These are revenue in nature (like heavy advertisement) but their benefit extends over multiple years. A portion is written off annually, and the balance is shown as a Fictitious Asset.
Q11. In the absence of a Partnership Deed, interest on a loan advanced by a partner to the firm is allowed at:
a) 6% p.a.
b) 10% p.a.
c) 12% p.a.
d) No interest allowed
Answer: a
Solution: According to the Indian Partnership Act, 1932, if the deed is silent, a partner is entitled to 6% p.a. interest on loans given to the firm, even if the firm incurs a loss.
Q12. The 'Imprest System' is used in maintaining:
a) Sales Ledger
b) Petty Cash Book
c) Purchase Book
d) Cash Flow Statement
Answer: b
Solution: Under the Imprest System, the Petty Cashier is given a fixed sum (float) at the beginning. At the end of the period, the Head Cashier reimburses the exact amount spent to restore the float.
Q13. 'Unearned Income' or 'Income Received in Advance' is shown on which side of the Balance Sheet?
a) Assets
b) Liabilities
c) Debit side of P&L
d) Not shown in Balance Sheet
Answer: b
Solution: Income received for work not yet done creates an obligation to perform the service in the future. Hence, it is treated as a Liability.
Q14. The term 'Amortization' refers to writing off:
a) Tangible Assets
b) Intangible Assets
c) Wasting Assets
d) Current Assets
Answer: b
Solution: Depreciation is for tangible assets (machinery), Depletion is for wasting assets (mines), and Amortization is specifically for writing off the value of Intangible Assets like Goodwill, Patents, or Copyrights.
Q15. According to the Double Entry System, the equation 'Assets = Liabilities + Capital' is based on:
a) Matching Concept
b) Dual Aspect Concept
c) Cost Concept
d) Accrual Concept
Answer: b
Solution: The Dual Aspect concept states that every transaction has two effects (Debit and Credit), resulting in the fundamental accounting equation: Assets = Liabilities + Capital.
Part 2: Advanced J&K General Knowledge
Focus: J&K Reorganisation Act 2019, Geography, and Specific History.
Q16. Section 96 of the J&K Reorganisation Act, 2019 empowers the Central Government to:
a) Appoint the Lieutenant Governor
b) Adapt Central Laws in the Union Territory
c) Delimit Constituencies
d) Manage the Consolidated Fund
Answer: b
Solution: Section 96 gives the power of "Adaptation of Laws" to the Central Government to facilitate the application of laws in the successor Union Territories.
Q17. Which schedule of the J&K Reorganisation Act, 2019 deals with the Oaths and Affirmations?
a) First Schedule
b) Second Schedule
c) Fourth Schedule
d) Fifth Schedule
Answer: c
Solution: The Fourth Schedule of the Act details the forms of Oaths and Affirmations for members of the Legislative Assembly, Ministers, etc.
Q18. The Karewas of Kashmir are geologically famous for the cultivation of Zafran. Which geological period do they belong to?
a) Pleistocene Period
b) Jurassic Period
c) Carboniferous Period
d) Triassic Period
Answer: a
Solution: Karewas are lacustrine deposits formed during the Pleistocene period when the entire Valley of Kashmir was a vast lake (Satisar).
Q19. Who was the first Muslim ruler of Kashmir, often referred to as the founder of the Shah Mir dynasty?
a) Zain-ul-Abidin
b) Sultan Sikandar
c) Shah Mir (Sultan Shams-ud-Din)
d) Yusuf Shah Chak
Answer: c
Solution: Shah Mir ascended the throne in 1339 AD under the title Sultan Shams-ud-Din, establishing the Shah Mir dynasty which ruled Kashmir for over 200 years.
Q20. The 'Chenani-Nashri Tunnel' is officially named after:
a) Atal Bihari Vajpayee
b) Dr. Syama Prasad Mookerjee
c) Maharaja Hari Singh
d) Indira Gandhi
Answer: b
Solution: The 9.2 km long tunnel, which is India's longest road tunnel, was renamed the Dr. Syama Prasad Mookerjee Tunnel in 2019.
Q21. Which river in J&K flows into the Wular Lake and then flows out of it?
a) Chenab
b) Jhelum
c) Kishenganga
d) Liddar
Answer: b
Solution: The Jhelum River feeds into the Wular Lake (one of Asia's largest freshwater lakes) and then exits it, acting as a natural flood reservoir for the valley.
Q22. The term 'Darbar Move' (now discontinued) was introduced by which Dogra ruler?
a) Gulab Singh
b) Ranbir Singh
c) Pratap Singh
d) Hari Singh
Answer: b
Solution: The bi-annual shifting of the capital between Srinagar and Jammu (Darbar Move) was started by Maharaja Ranbir Singh in 1872 to escape the harsh weather conditions.
Q23. In the context of J&K Geography, 'Kandi' refers to:
a) High altitude pastures
b) Waterlogged marshy land
c) Dry and arid sub-mountainous region
d) Fertile valley floor
Answer: c
Solution: The Kandi belt is a dry, sub-mountainous region in the Jammu division characterized by a scarcity of water and soil erosion.
Q24. Who was the architect of the famous 'Pari Mahal' in Srinagar?
a) Shah Jahan
b) Dara Shikoh
c) Jahangir
d) Akbar
Answer: b
Solution: Pari Mahal (Palace of Fairies) was built by Prince Dara Shikoh, the eldest son of Shah Jahan, in the mid-1600s. It served as a library and a school of astrology.
Q25. The Zojila Tunnel, meant to provide all-weather connectivity to Ladakh, connects which two places?
a) Sonamarg and Dras
b) Srinagar and Leh
c) Jammu and Srinagar
d) Manali and Leh
Answer: a
Solution: The tunnel connects Sonamarg (in Kashmir) to Dras (in Ladakh) via the Zojila Pass, ensuring connectivity even during heavy snowfall.
(Self-Correction Check: Are you finding these questions challenging? Ensure you validate your preparation with the JKSSB Finance Accounts Assistant Mock Test Series 2026 to identify weak spots.)
Q26. Which Article of the Indian Constitution (now applicable to J&K) deals with the 'Right to Education'?
a) Article 19
b) Article 21
c) Article 21A
d) Article 32
Answer: c
Solution: Article 21A guarantees free and compulsory education to all children between the ages of 6 and 14 years.
Q27. The famous 'Mughal Road' connects the Kashmir Valley with:
a) Ladakh
b) Poonch and Rajouri
c) Doda and Kishtwar
d) Himachal Pradesh
Answer: b
Solution: The historic Mughal Road connects the Shopian district in the Kashmir Valley with the Poonch and Rajouri districts in the Jammu division over the Pir Panjal range.
Q28. The 'Chilla-i-Kalan' refers to:
a) The onset of Spring in Kashmir
b) The 40-day period of harshest winter
c) The harvest festival
d) A traditional musical instrument
Answer: b
Solution: Chilla-i-Kalan is the local term for the 40-day period of intense cold in Kashmir, starting from December 21st to January 31st.
Q29. According to the 2011 Census, which district of J&K has the lowest population density?
a) Kishtwar
b) Doda
c) Leh (then part of J&K state)
d) Kargil
Answer: c (Leh) / a (Kishtwar - if strictly current UT context)
Solution: Historically in the 2011 Census of the J&K State, Leh had the lowest density. In the current UT of J&K context (excluding Ladakh), Kishtwar has a very low population density due to its rugged terrain.
Q30. The 'Instrument of Accession' signed by Maharaja Hari Singh had three subjects surrendered to the Dominion of India. Which were they?
a) Defence, External Affairs, and Communications
b) Defence, Finance, and Railways
c) External Affairs, Currency, and Defence
d) Communications, Trade, and Defence
Answer: a
Solution: The Instrument of Accession gave the Dominion of India power only over Defence, External Affairs, and Communications.
Part 3: Advanced Economics, Statistics & Science
Focus: Market structures, Statistical formulas, and Physics/Biology concepts.
Q31. In Economics, a market structure with a 'Single Buyer' is known as:
a) Monopoly
b) Monopsony
c) Oligopoly
d) Duopoly
Answer: b
Solution: A Monopoly has a single seller, whereas a Monopsony is a market condition where there is only one buyer (e.g., the government buying defense equipment).
Q32. The 'Phillips Curve' suggests an inverse relationship between:
a) Supply and Demand
b) Inflation and Unemployment
c) Taxes and Revenue
d) Interest Rates and Investment
Answer: b
Solution: The Phillips Curve depicts an inverse relationship between the rate of inflation and the rate of unemployment in an economy.
Q33. Which index is used by the RBI to define the inflation target?
a) WPI (Wholesale Price Index)
b) CPI - Industrial Workers
c) CPI - Combined (Consumer Price Index)
d) GDP Deflator
Answer: c
Solution: Since 2014, the Reserve Bank of India (RBI) has adopted the CPI (Combined) as the key measure of inflation for formulating monetary policy.
Q34. In Statistics, the 'Mode' of a distribution can be calculated using the empirical relationship:
a) Mode = 3 Median - 2 Mean
b) Mode = 2 Median - 3 Mean
c) Mode = Mean - Median
d) Mode = 3 Mean - 2 Median
Answer: a
Solution: For a moderately skewed distribution, the empirical relationship is: Mode = 3 Median - 2 Mean.
Q35. 'Fisher's Ideal Index Number' is the geometric mean of:
a) Laspeyres' and Paasche's Index
b) Bowley's and Marshall's Index
c) Laspeyres' and Kelley's Index
d) Paasche's and Dorbish's Index
Answer: a
Solution: Fisher's Ideal Index is considered "ideal" because it satisfies both the Time Reversal Test and Factor Reversal Test. It is calculated as √(Laspeyres Index × Paasche Index).
Q36. The 'Law of Diminishing Marginal Utility' states that as we consume more units of a commodity:
a) Total Utility decreases
b) Marginal Utility increases
c) Marginal Utility decreases
d) Marginal Utility remains constant
Answer: c
Solution: While Total Utility may increase at a diminishing rate, the Marginal Utility (satisfaction derived from each additional unit) declines.
Q37. Which type of mirror is used by dentists to see large images of teeth?
a) Convex Mirror
b) Concave Mirror
c) Plane Mirror
d) Cylindrical Mirror
Answer: b
Solution: A Concave mirror produces an erect, virtual, and magnified image when the object (tooth) is placed very close to the mirror (within the focus).
Q38. In the context of Global Warming, 'Carbon Credits' were introduced under which international agreement?
a) Montreal Protocol
b) Kyoto Protocol
c) Paris Agreement
d) Rio Summit
Answer: b
Solution: The Kyoto Protocol (1997) introduced the concept of Carbon Credits to allow countries to trade emissions allowances.
Q39. What is the function of 'Xylem' in plants?
a) Transport of food
b) Transport of water and minerals
c) Photosynthesis
d) Reproduction
Answer: b
Solution: Xylem transports water and dissolved minerals from the roots to the stems and leaves. (Mnemonic: Xylem = Jal/Water; Phloem = Food).
Q40. The 'Tyndall Effect' is related to:
a) Reflection of light
b) Scattering of light by colloidal particles
c) Refraction of light
d) Dispersion of light
Answer: b
Solution: The Tyndall Effect is the scattering of a beam of light by a medium containing small suspended particles (like smoke or fog), making the light beam visible.
Q41. Which Five Year Plan in India emphasized 'Growth with Social Justice and Equity'?
a) 5th Five Year Plan
b) 9th Five Year Plan
c) 11th Five Year Plan
d) 2nd Five Year Plan
Answer: b
Solution: The 9th Five Year Plan (1997-2002) was launched with the primary objective of "Growth with Social Justice and Equity."
Q42. In a normal distribution curve, the area covered within μ ± 1σ (Mean ± 1 Standard Deviation) is approximately:
a) 50%
b) 68.26%
c) 95.44%
d) 99.73%
Answer: b
Solution: In a standard Normal Distribution, 68.26% of the data falls within one standard deviation of the mean.
Q43. Newton's Third Law of Motion explains the principle behind:
a) Rowing a boat
b) Recoil of a gun
c) Launching of a rocket
d) All of the above
Answer: d
Solution: All these examples utilize the principle "For every action, there is an equal and opposite reaction."
Q44. Which vitamin is chemically known as 'Cyanocobalamin'?
a) Vitamin B1
b) Vitamin B6
c) Vitamin B12
d) Vitamin C
Answer: c
Solution: Vitamin B12 is known as Cyanocobalamin. It contains the metal ion Cobalt.
Q45. The memory that acts as a buffer between the CPU and Main Memory is called:
a) Secondary Memory
b) Cache Memory
c) Virtual Memory
d) Flash Memory
Answer: b
Solution: Cache Memory is a high-speed memory that stores frequently accessed data to speed up CPU operations.
Q46. In computer networking, what does DNS stand for?
a) Data Network System
b) Domain Name System
c) Digital Name Service
d) Domain Network Service
Answer: b
Solution: DNS (Domain Name System) translates human-readable domain names (like https://www.google.com/search?q=google.com) into IP addresses that computers use.
Q47. 'Gresham’s Law' in Economics states that:
a) Bad money drives good money out of circulation
b) Good money drives bad money out of circulation
c) Supply creates its own demand
d) Population grows geometrically
Answer: a
Solution: If two types of currency are in circulation, the one with lower intrinsic value (Bad Money) will circulate freely, while the one with higher intrinsic value (Good Money) will be hoarded.
Q48. The 'Coefficient of Variation' (CV) is calculated as:
a) (Mean / SD) × 100
b) (SD / Mean) × 100
c) (Variance / Mean) × 100
d) (Mean / Variance) × 100
Answer: b
Solution: CV is a relative measure of dispersion, calculated as (Standard Deviation ÷ Mean) × 100.
Q49. Which gas is evolved when baking soda is heated?
a) Carbon Monoxide
b) Carbon Dioxide
c) Oxygen
d) Nitrogen
Answer: b
Solution: When Sodium Bicarbonate (Baking Soda) is heated, it decomposes to release Carbon Dioxide (CO2), which causes the dough to rise.
Q50. A situation where a firm charges different prices to different customers for the same product is called:
a) Price Ceiling
b) Price Discrimination
c) Price Floor
d) Product Differentiation
Answer: b
Solution: Price Discrimination is a strategy often used by a Monopolist to maximize profits by charging different prices based on the consumer's willingness to pay.
Final Words for Aspirants
Preparing for the JKSSB Finance Accounts Assistant exam is a marathon, not a sprint. The questions above are designed to test the depth of your knowledge. If you found the Accountancy or GK sections tricky, it indicates a need to revisit the core textbooks and legal acts.
Consistent
practice is the key to cracking this exam. Don't rely solely on reading; active testing is crucial. For a complete, time-bound testing environment, make sure to enroll in the JKSSB Finance Accounts Assistant Mock Test Series 2026. It offers subject-wise and full-length tests that can significantly boost your confidence and speed.
Good luck with your preparation!
