UPSC EPFO APFC 2026 Mock Test Series with Answers

Q: Which statement best explains Accrued income?

Correct Answer: A. Income earned but not yet received. Accrued income: Income earned but not yet received

Q: Which of the following is best described as: Income earned but not yet received

Correct Answer: A. Accrued income. The correct answer is Accrued income. Income earned but not yet received

Q: Which of the following is best described as: Payment made in advance for a future accounting period

Correct Answer: D. Prepaid expense. The correct answer is Prepaid expense. Payment made in advance for a future accounting period

Q: Which statement best explains Outstanding expense?

Correct Answer: C. Expense incurred but not yet paid. Outstanding expense: Expense incurred but not yet paid

Q: Which of the following is best described as: Expense incurred but not yet paid

Correct Answer: A. Outstanding expense. The correct answer is Outstanding expense. Expense incurred but not yet paid

Q: Which of the following is best described as: Recognition of transactions primarily when cash is received or paid

Correct Answer: B. Cash basis. The correct answer is Cash basis. Recognition of transactions primarily when cash is received or paid

Q: Which of the following is best described as: Recognition of income and expenses when earned or incurred rather than only when cash moves

Correct Answer: D. Accrual basis. The correct answer is Accrual basis. Recognition of income and expenses when earned or incurred rather than only when cash moves

QID #25888 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Accrued income?

Correct Answer: A. Income earned but not yet received
Accrued income: Income earned but not yet received

Question: Which statement best explains Accrued income?

A. Income earned but not yet received

B. Asset expected to be realized, sold or consumed within the operating cycle or specified short period

C. Obligation expected to be settled within the operating cycle or specified short period

D. Statement reconciling differences between bank balance per books and bank statement

Correct Answer: A. Income earned but not yet receivedExplanation: Accrued income: Income earned but not yet received

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QID #25887 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which of the following is best described as: Income earned but not yet received

Correct Answer: A. Accrued income
The correct answer is Accrued income. Income earned but not yet received

Question: Which of the following is best described as: Income earned but not yet received

A. Accrued income

B. Current asset

C. Double-entry system

D. Provision for doubtful debts

Correct Answer: A. Accrued incomeExplanation: The correct answer is Accrued income. Income earned but not yet received

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QID #25886 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Prepaid expense?

Correct Answer: A. Payment made in advance for a future accounting period
Prepaid expense: Payment made in advance for a future accounting period

Question: Which statement best explains Prepaid expense?

A. Payment made in advance for a future accounting period

B. Depreciation method charging an equal amount each year, subject to residual value

C. Book containing individual accounts to which journal entries are posted

D. Statement reconciling differences between bank balance per books and bank statement

Correct Answer: A. Payment made in advance for a future accounting periodExplanation: Prepaid expense: Payment made in advance for a future accounting period

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QID #25885 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which of the following is best described as: Payment made in advance for a future accounting period

Correct Answer: D. Prepaid expense
The correct answer is Prepaid expense. Payment made in advance for a future accounting period

Question: Which of the following is best described as: Payment made in advance for a future accounting period

A. Provision for doubtful debts

B. Closing stock

C. Bad debt

D. Prepaid expense

Correct Answer: D. Prepaid expenseExplanation: The correct answer is Prepaid expense. Payment made in advance for a future accounting period

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QID #25884 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Outstanding expense?

Correct Answer: C. Expense incurred but not yet paid
Outstanding expense: Expense incurred but not yet paid

Question: Which statement best explains Outstanding expense?

A. Systematic allocation of the depreciable amount of an asset over its useful life

B. Income earned but not yet received

C. Expense incurred but not yet paid

D. Obligation expected to be settled within the operating cycle or specified short period

Correct Answer: C. Expense incurred but not yet paidExplanation: Outstanding expense: Expense incurred but not yet paid

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QID #25883 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which of the following is best described as: Expense incurred but not yet paid

Correct Answer: A. Outstanding expense
The correct answer is Outstanding expense. Expense incurred but not yet paid

Question: Which of the following is best described as: Expense incurred but not yet paid

A. Outstanding expense

B. Working capital

C. Depreciation

D. Balance sheet

Correct Answer: A. Outstanding expenseExplanation: The correct answer is Outstanding expense. Expense incurred but not yet paid

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QID #25882 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Cash basis?

Correct Answer: C. Recognition of transactions primarily when cash is received or paid
Cash basis: Recognition of transactions primarily when cash is received or paid

Question: Which statement best explains Cash basis?

A. Asset expected to be realized, sold or consumed within the operating cycle or specified short period

B. Expenditure whose benefit is generally consumed within the current accounting period

C. Recognition of transactions primarily when cash is received or paid

D. Recognition of income and expenses when earned or incurred rather than only when cash moves

Correct Answer: C. Recognition of transactions primarily when cash is received or paidExplanation: Cash basis: Recognition of transactions primarily when cash is received or paid

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QID #25881 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which of the following is best described as: Recognition of transactions primarily when cash is received or paid

Correct Answer: B. Cash basis
The correct answer is Cash basis. Recognition of transactions primarily when cash is received or paid

Question: Which of the following is best described as: Recognition of transactions primarily when cash is received or paid

A. Current liability

B. Cash basis

C. Accounting equation

D. Bank reconciliation statement

Correct Answer: B. Cash basisExplanation: The correct answer is Cash basis. Recognition of transactions primarily when cash is received or paid

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QID #25880 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Accrual basis?

Correct Answer: D. Recognition of income and expenses when earned or incurred rather than only when cash moves
Accrual basis: Recognition of income and expenses when earned or incurred rather than only when cash moves

Question: Which statement best explains Accrual basis?

A. Book of original entry in which transactions are first recorded chronologically

B. Estimate of receivables that may become uncollectible

C. Expense incurred but not yet paid

D. Recognition of income and expenses when earned or incurred rather than only when cash moves

Correct Answer: D. Recognition of income and expenses when earned or incurred rather than only when cash movesExplanation: Accrual basis: Recognition of income and expenses when earned or incurred rather than only when cash moves

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QID #25879 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which of the following is best described as: Recognition of income and expenses when earned or incurred rather than only when cash moves

Correct Answer: D. Accrual basis
The correct answer is Accrual basis. Recognition of income and expenses when earned or incurred rather than only when cash moves

Question: Which of the following is best described as: Recognition of income and expenses when earned or incurred rather than only when cash moves

A. Journal

B. Outstanding expense

C. Provision for doubtful debts

D. Accrual basis

Correct Answer: D. Accrual basisExplanation: The correct answer is Accrual basis. Recognition of income and expenses when earned or incurred rather than only when cash moves

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QID #25878 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Written-down value method?

Correct Answer: C. Depreciation method applying a rate to the carrying amount of an asset
Written-down value method: Depreciation method applying a rate to the carrying amount of an asset

Question: Which statement best explains Written-down value method?

A. Asset expected to be realized, sold or consumed within the operating cycle or specified short period

B. Statement reconciling differences between bank balance per books and bank statement

C. Depreciation method applying a rate to the carrying amount of an asset

D. Inventory remaining unsold at the end of an accounting period

Correct Answer: C. Depreciation method applying a rate to the carrying amount of an assetExplanation: Written-down value method: Depreciation method applying a rate to the carrying amount of an asset

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QID #25877 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which of the following is best described as: Depreciation method applying a rate to the carrying amount of an asset

Correct Answer: A. Written-down value method
The correct answer is Written-down value method. Depreciation method applying a rate to the carrying amount of an asset

Question: Which of the following is best described as: Depreciation method applying a rate to the carrying amount of an asset

A. Written-down value method

B. Closing stock

C. Accrual basis

D. Current asset

Correct Answer: A. Written-down value methodExplanation: The correct answer is Written-down value method. Depreciation method applying a rate to the carrying amount of an asset

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QID #25876 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Straight-line method?

Correct Answer: A. Depreciation method charging an equal amount each year, subject to residual value
Straight-line method: Depreciation method charging an equal amount each year, subject to residual value

Question: Which statement best explains Straight-line method?

A. Depreciation method charging an equal amount each year, subject to residual value

B. Expenditure creating or improving a long-term asset or benefit

C. Asset expected to be realized, sold or consumed within the operating cycle or specified short period

D. Book containing individual accounts to which journal entries are posted

Correct Answer: A. Depreciation method charging an equal amount each year, subject to residual valueExplanation: Straight-line method: Depreciation method charging an equal amount each year, subject to residual value

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QID #25875 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which of the following is best described as: Depreciation method charging an equal amount each year, subject to residual value

Correct Answer: A. Straight-line method
The correct answer is Straight-line method. Depreciation method charging an equal amount each year, subject to residual value

Question: Which of the following is best described as: Depreciation method charging an equal amount each year, subject to residual value

A. Straight-line method

B. Ledger

C. Accrued income

D. Capital expenditure

Correct Answer: A. Straight-line methodExplanation: The correct answer is Straight-line method. Depreciation method charging an equal amount each year, subject to residual value

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QID #25874 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Depreciation?

Correct Answer: D. Systematic allocation of the depreciable amount of an asset over its useful life
Depreciation: Systematic allocation of the depreciable amount of an asset over its useful life

Question: Which statement best explains Depreciation?

A. Recognition of transactions primarily when cash is received or paid

B. Expenditure whose benefit is generally consumed within the current accounting period

C. Current assets minus current liabilities

D. Systematic allocation of the depreciable amount of an asset over its useful life

Correct Answer: D. Systematic allocation of the depreciable amount of an asset over its useful lifeExplanation: Depreciation: Systematic allocation of the depreciable amount of an asset over its useful life

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QID #25873 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which of the following is best described as: Systematic allocation of the depreciable amount of an asset over its useful life

Correct Answer: C. Depreciation
The correct answer is Depreciation. Systematic allocation of the depreciable amount of an asset over its useful life

Question: Which of the following is best described as: Systematic allocation of the depreciable amount of an asset over its useful life

A. Cash basis

B. Revenue expenditure

C. Depreciation

D. Trial balance

Correct Answer: C. DepreciationExplanation: The correct answer is Depreciation. Systematic allocation of the depreciable amount of an asset over its useful life

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QID #25872 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Revenue expenditure?

Correct Answer: B. Expenditure whose benefit is generally consumed within the current accounting period
Revenue expenditure: Expenditure whose benefit is generally consumed within the current accounting period

Question: Which statement best explains Revenue expenditure?

A. Inventory remaining unsold at the end of an accounting period

B. Expenditure whose benefit is generally consumed within the current accounting period

C. Statement listing ledger balances to test arithmetical agreement of debits and credits

D. Book of original entry in which transactions are first recorded chronologically

Correct Answer: B. Expenditure whose benefit is generally consumed within the current accounting periodExplanation: Revenue expenditure: Expenditure whose benefit is generally consumed within the current accounting period

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QID #25871 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which of the following is best described as: Expenditure whose benefit is generally consumed within the current accounting period

Correct Answer: C. Revenue expenditure
The correct answer is Revenue expenditure. Expenditure whose benefit is generally consumed within the current accounting period

Question: Which of the following is best described as: Expenditure whose benefit is generally consumed within the current accounting period

A. Depreciation

B. Working capital

C. Revenue expenditure

D. Current liability

Correct Answer: C. Revenue expenditureExplanation: The correct answer is Revenue expenditure. Expenditure whose benefit is generally consumed within the current accounting period

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QID #25870 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Capital expenditure?

Correct Answer: D. Expenditure creating or improving a long-term asset or benefit
Capital expenditure: Expenditure creating or improving a long-term asset or benefit

Question: Which statement best explains Capital expenditure?

A. Assets = Liabilities + Equity

B. Statement of financial position showing assets, liabilities and equity at a point in time

C. Statement reconciling differences between bank balance per books and bank statement

D. Expenditure creating or improving a long-term asset or benefit

Correct Answer: D. Expenditure creating or improving a long-term asset or benefitExplanation: Capital expenditure: Expenditure creating or improving a long-term asset or benefit

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QID #25869 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which of the following is best described as: Expenditure creating or improving a long-term asset or benefit

Correct Answer: A. Capital expenditure
The correct answer is Capital expenditure. Expenditure creating or improving a long-term asset or benefit

Question: Which of the following is best described as: Expenditure creating or improving a long-term asset or benefit

A. Capital expenditure

B. Depreciation

C. Income statement

D. Outstanding expense

Correct Answer: A. Capital expenditureExplanation: The correct answer is Capital expenditure. Expenditure creating or improving a long-term asset or benefit

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UPSC EPFO APFC 2026 Mock Test Series with Answers | Military Brat Defence Academy

Which statement best explains Accrued income?

Which of the following is best described as: Income earned but not yet received

Which statement best explains Prepaid expense?

Which of the following is best described as: Payment made in advance for a future accounting period

Which statement best explains Outstanding expense?

Which of the following is best described as: Expense incurred but not yet paid

Which statement best explains Cash basis?

Which of the following is best described as: Recognition of transactions primarily when cash is received or paid

Which statement best explains Accrual basis?

Which of the following is best described as: Recognition of income and expenses when earned or incurred rather than only when cash moves

Which statement best explains Written-down value method?

Which of the following is best described as: Depreciation method applying a rate to the carrying amount of an asset

Which statement best explains Straight-line method?

Which of the following is best described as: Depreciation method charging an equal amount each year, subject to residual value

Which statement best explains Depreciation?

Which of the following is best described as: Systematic allocation of the depreciable amount of an asset over its useful life

Which statement best explains Revenue expenditure?

Which of the following is best described as: Expenditure whose benefit is generally consumed within the current accounting period

Which statement best explains Capital expenditure?

Which of the following is best described as: Expenditure creating or improving a long-term asset or benefit

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