50 Most Expected MCQs from Social Accounting
Practice Questions – Prepared by Home Academy
Social Accounting questions in competitive exams generally test concept, objectives, CSR, environmental responsibility, and social audit links.
Section A – Basic Concept MCQs
Q1. Social accounting mainly deals with:
A. Recording financial transactions
B. Measuring social impact of business activities
C. Calculating profit
D. Preparing balance sheet
Answer: B
Q2. Social accounting is also known as:
A. Social responsibility accounting
B. Financial accounting
C. Management accounting
D. Cost accounting
Answer: A
Q3. The main focus of social accounting is:
A. Profit maximization
B. Social welfare and environmental impact
C. Tax calculation
D. Banking transactions
Answer: B
Q4. Social accounting evaluates:
A. Financial position only
B. Social costs and benefits
C. Bank deposits
D. Inventory value
Answer: B
Q5. Social accounting mainly promotes:
A. Corporate Social Responsibility
B. Market competition
C. Capital investment
D. Tax evasion
Answer: A
Section B – Objectives of Social Accounting
Q6. One major objective of social accounting is:
A. Increase production
B. Ensure accountability towards society
C. Increase profit margin
D. Reduce tax liability
Answer: B
Q7. Social accounting helps organizations to:
A. Hide social impacts
B. Evaluate social performance
C. Increase stock value
D. Reduce wages
Answer: B
Q8. Social accounting improves:
A. Transparency in business operations
B. Tax evasion
C. Black marketing
D. Market monopoly
Answer: A
Q9. Social accounting encourages:
A. Ethical business practices
B. Tax avoidance
C. Illegal trade
D. Monopoly
Answer: A
Q10. Social accounting helps in assessing:
A. Community development programs
B. Sales revenue
C. Inventory turnover
D. Bank balance
Answer: A
Section C – Scope of Social Accounting
Q11. Which of the following is included in social accounting?
A. Environmental protection
B. Employee welfare
C. Community development
D. All of the above
Answer: D
Q12. Social accounting includes reporting on:
A. Pollution control measures
B. Corporate tax payments
C. Bank loans
D. Share capital
Answer: A
Q13. Social accounting evaluates company impact on:
A. Society
B. Environment
C. Employees
D. All of the above
Answer: D
Q14. Corporate donations to schools and hospitals are examples of:
A. Financial accounting
B. Social responsibility activities
C. Tax evasion
D. Capital expenditure
Answer: B
Q15. Social accounting reports mainly include:
A. Social cost and benefits
B. Cash book entries
C. Trial balance
D. Bank reconciliation
Answer: A
Section D – Social Responsibility
Q16. Social accounting is closely related to:
A. Corporate Social Responsibility
B. Cost control
C. Market expansion
D. Financial auditing
Answer: A
Q17. Corporate Social Responsibility (CSR) means:
A. Ignoring society
B. Responsibility of businesses towards society
C. Maximizing profit only
D. Increasing taxes
Answer: B
Q18. Spending on employee health programs reflects:
A. Financial accounting
B. Social responsibility
C. Taxation
D. Capital loss
Answer: B
Q19. Environmental protection activities of companies are recorded in:
A. Social accounting
B. Cost accounting
C. Financial accounting
D. Standard costing
Answer: A
Q20. Which activity reflects social responsibility?
A. Reducing pollution
B. Fair wages
C. Community welfare programs
D. All of the above
Answer: D
Section E – Social Audit
Q21. Social audit evaluates:
A. Profit of company
B. Social performance of organization
C. Cost of production
D. Inventory value
Answer: B
Q22. Social audit ensures:
A. Corruption
B. Transparency and accountability
C. Monopoly
D. Tax evasion
Answer: B
Q23. Social audit is mainly used in:
A. Welfare schemes
B. Stock markets
C. Banking loans
D. Corporate taxation
Answer: A
Q24. Social audit encourages:
A. Citizen participation
B. Tax evasion
C. Private monopoly
D. Illegal trade
Answer: A
Q25. Social audit is mostly applied in:
A. Government development programs
B. Stock exchanges
C. Banking transactions
D. Insurance policies
Answer: A
Section F – Features of Social Accounting
Q26. Social accounting focuses on:
A. Social welfare
B. Environmental protection
C. Ethical practices
D. All of the above
Answer: D
Q27. Social accounting reports mainly target:
A. Stakeholders and society
B. Bankers only
C. Tax officers only
D. Shareholders only
Answer: A
Q28. Social accounting includes measurement of:
A. Social cost
B. Social benefit
C. Social performance
D. All of the above
Answer: D
Q29. Social accounting is important for:
A. Sustainable development
B. Market monopoly
C. Black marketing
D. Tax avoidance
Answer: A
Q30. Social accounting improves:
A. Corporate reputation
B. Social trust
C. Transparency
D. All of the above
Answer: D
Section G – Limitations of Social Accounting
Q31. One limitation of social accounting is:
A. Difficult to measure social benefits
B. Simple calculations
C. Accurate profit measurement
D. Complete records
Answer: A
Q32. Social accounting lacks:
A. Standardized measurement methods
B. Profit calculation
C. Cost records
D. Financial statements
Answer: A
Q33. Social accounting may sometimes be used for:
A. Public relations publicity
B. Bank reconciliation
C. Inventory valuation
D. Trial balance
Answer: A
Section H – Advanced Concept MCQs
Q34. Social accounting helps businesses achieve:
A. Sustainable growth
B. Tax evasion
C. Illegal profit
D. Monopoly
Answer: A
Q35. Social accounting includes evaluation of:
A. Environmental impact
B. Community development
C. Employee welfare
D. All of the above
Answer: D
Q36. The main users of social accounting information are:
A. Society
B. Government
C. Stakeholders
D. All of the above
Answer: D
Q37. Reporting on pollution control measures belongs to:
A. Cost accounting
B. Social accounting
C. Financial accounting
D. Management accounting
Answer: B
Q38. Social accounting mainly promotes:
A. Responsible corporate behavior
B. Tax evasion
C. Market monopoly
D. Price fixing
Answer: A
Section I – Mixed Concept MCQs
Q39. Social accounting measures:
A. Financial profit
B. Social performance
C. Bank deposits
D. Inventory value
Answer: B
Q40. Social audit is part of:
A. Social accounting system
B. Cost accounting
C. Financial accounting
D. Banking system
Answer: A
Q41. Social accounting is important for:
A. Environmental sustainability
B. Community welfare
C. Corporate responsibility
D. All of the above
Answer: D
Q42. Corporate donations to social causes are recorded in:
A. Social accounting
B. Double entry accounting
C. Standard costing
D. Cost accounting
Answer: A
Q43. Social accounting promotes:
A. Ethical corporate governance
B. Tax evasion
C. Black marketing
D. Illegal trade
Answer: A
Section J – Exam Level Questions
Q44. Social accounting mainly focuses on:
A. Economic impact
B. Social and environmental impact
C. Bank balance
D. Capital investment
Answer: B
Q45. Which organization mostly uses social accounting?
A. Government organizations
B. Public sector companies
C. NGOs
D. All of the above
Answer: D
Q46. Social accounting reports help:
A. Improve corporate image
B. Increase transparency
C. Evaluate social impact
D. All of the above
Answer: D
Q47. Social accounting encourages companies to:
A. Ignore environmental issues
B. Protect society and environment
C. Reduce wages
D. Avoid responsibility
Answer: B
Q48. Social accounting is related to:
A. Ethical business conduct
B. Profit maximization
C. Tax reduction
D. Market monopoly
Answer: A
Q49. Social accounting measures the relationship between:
A. Business and society
B. Business and bank
C. Business and shareholders
D. Business and taxation
Answer: A
Q50. The ultimate goal of social accounting is:
A. Social welfare and sustainable development
B. Profit maximization
C. Tax reduction
D. Capital expansion
Answer: A