Higher Secondary School Teacher Exam Questions with Answers (30 MCQs) – HSST Practice Set

Question No. 1: Which among the following rate is more suitable in a mechanised industry?
A. Labour hour rate
B. Machine hour rate
C. Labour turnover rate
D. Dual hour rate

Correct Answer: Option B – Machine hour rate

Question No. 2: Which among the following is not an item of selling and distribution overheads?
A. Depreciation of delivery van
B. Power and fuel
C. Warehousing expenses
D. Bad debts

Correct Answer: Option B – Power and fuel

Question No. 3: Which among the following decisions cannot be made with the help of marginal costing technique?
A. Make or buy
B. Determination of price of product
C. Estimation of demand of product
D. Accepting fresh orders at low price

Correct Answer: Option C – Estimation of demand of product

Question No. 4: If average method is adopted in process costing, the cost of opening inventory is
A. Subtracted from new costs
B. Averaged with other costs to arrive at total cost
C. Kept separate from the costs of new period
D. Added to new cost

Correct Answer: Option A – Subtracted from new costs

Question No. 5: Which among the following concepts are inconsistent with JIT philosophy?
A. Using a team approach
B. Using overhead variance analysis at the process level
C. Using statistical control charts at the process level
D. (1) and (2)

Correct Answer: Option B – Using overhead variance analysis at the process level

Question No. 6: Myron Gordon's Theory of Relevance is based on certain assumptions. Which among the following is/are the assumptions?
i. The firm is an all-equity firm
ii. The internal rate of return is constant
iii. There exist corporate taxes
iv. The cost of capital is greater than the growth rate
A. only i, ii and iii
B. only ii, iii and iv
C. only i, ii and iv
D. all of the above

Correct Answer: Option C – only i, ii and iv

Question No. 7: The concept of "Zero-defects" is associated with which of the TQM strategy?
A. Just-in-Time
B. Total Quality Control
C. Fishbone Diagram
D. Six Sigma Strategy

Correct Answer: Option D – Six Sigma Strategy

Question No. 8: Which among the following statements are not a feature of ADR?
i. ADRs are negotiable instruments issued by a US Bank
ii. It represents only US company stock
iii. ADRs are listed in all stock exchanges around the globe
iv. ADRs are negotiated all over the world
A. only i and ii
B. only ii and iii
C. only iii and iv
D. only i and iv

Correct Answer: Option C – only iii and iv

Question No. 9: Which corporate governance theory concentrates on the role of the Board of Directors in providing access to resources needed by the firm?
A. Transaction Cost Theory
B. Resource Dependency Theory
C. Stakeholder Theory
D. Stewardship Theory

Correct Answer: Option B – Resource Dependency Theory

Question No. 10: While entering the purchase and sale transaction in the Investment Account, some errors occurred. Identify the errors.
A. only i and ii
B. only ii and iii
C. only i and iii
D. only i and iv

Correct Answer: Option D – only i and iv

Question No. 11: Meyer and Allen developed three models of Organisational Commitment. Which statement does not match the commitment terminology?
A. only i and ii
B. only ii and iii
C. only i and iii
D. none of the above

Correct Answer: Option C – only i and iii

Question No. 12: Identify the facts related to the Current Ratio.
A. only i, ii and iii
B. only ii, iii and iv
C. only i, ii and iv
D. only i, iii and iv

Correct Answer: Option A – only i, ii and iii

Question No. 13: Identify the facts which do not support the Current Cost Accounting method of inflation accounting.
A. All items shown at current values
B. Depreciation on current value
C. Difference transferred to Revaluation Reserve
D. Revaluation Reserve shown on asset side

Correct Answer: Option D – Revaluation Reserve shown on asset side

Question No. 14: Identify the contradictory statements related to theories of group formation.
A. only i and ii
B. only ii and iii
C. only iii and iv
D. all of the above

Correct Answer: Option A – only i and ii

Question No. 15: Which among the following statements is/are true with licensing agreement?
A. only i and ii
B. only i and iii
C. only i and iv
D. all of the above

Correct Answer: Option C – only i and iv

Preparing for the Higher Secondary School Teacher (HSST) Examination requires strong subject knowledge, awareness of pedagogy, and exam-oriented practice. To help aspirants crack HSST exams conducted by PSCs and Education Departments, we have compiled 30 important HSST exam questions with correct answers.

These questions are useful for Kerala PSC HSST, State PSC Teacher Exams, and other Higher Secondary Teacher recruitment tests.

Higher Secondary School Teacher Exam Questions with Answers Question No. 1-15

Higher Secondary School Teacher Exam Questions with Answers Question No. 15-30

Question No. 15: The process of identifying, measuring and communicating economic information to permit informed judgments is known as
A. Book keeping
B. Accountancy
C. Accounting
D. Auditing

Correct Answer: Option C – Accounting

Question No. 16: Which of the following is not a characteristic of a company?
A. Artificial legal person
B. Limited liability
C. Perpetual succession
D. Mutual agency

Correct Answer: Option D – Mutual agency

Question No. 17: Capital expenditure results in
A. Increase in liabilities
B. Increase in assets
C. Decrease in assets
D. Decrease in liabilities

Correct Answer: Option B – Increase in assets

Question No. 18: The balancing figure in the trial balance is
A. Capital
B. Cash
C. Difference
D. Profit

Correct Answer: Option C – Difference

Question No. 19: Which account is credited when goods are returned by the customer?
A. Purchase return
B. Sales return
C. Debtor
D. Creditor

Correct Answer: Option B – Sales return

Question No. 20: Which of the following errors will not affect the trial balance?
A. Error of omission
B. Error of commission
C. Error of principle
D. Error of casting

Correct Answer: Option C – Error of principle

Question No. 21: Outstanding expenses are shown in the balance sheet as
A. Assets
B. Liabilities
C. Capital
D. Income

Correct Answer: Option B – Liabilities

Question No. 22: Which of the following is a real account?
A. Purchases
B. Capital
C. Machinery
D. Salary

Correct Answer: Option C – Machinery

Question No. 23: The main purpose of preparing a trial balance is to
A. Ascertain profit
B. Detect errors
C. Prepare balance sheet
D. Close accounts

Correct Answer: Option B – Detect errors

Question No. 24: Bad debts recovered are
A. Expenses
B. Losses
C. Incomes
D. Assets

Correct Answer: Option C – Incomes

Question No. 25: Which financial statement shows the financial position of the business?
A. Trading Account
B. Profit and Loss Account
C. Balance Sheet
D. Cash Book

Correct Answer: Option C – Balance Sheet

Question No. 26: Depreciation is charged to
A. Increase asset value
B. Reduce asset value
C. Increase profit
D. Increase capital

Correct Answer: Option B – Reduce asset value

Question No. 27: Which account is debited when rent is paid?
A. Cash
B. Capital
C. Rent
D. Outstanding rent

Correct Answer: Option C – Rent

Question No. 28: The excess of debit over credit in Profit and Loss Account is
A. Gross profit
B. Net profit
C. Gross loss
D. Net loss

Correct Answer: Option D – Net loss

Question No. 29: Which of the following is an intangible asset?
A. Furniture
B. Machinery
C. Goodwill
D. Building

Correct Answer: Option C – Goodwill

Question No. 30: The accounting year in India generally ends on
A. 31st December
B. 31st March
C. 30th June
D. 30th September

Correct Answer: Option B – 31st March

Conclusion

Practicing HSST exam questions with answers improves confidence, conceptual clarity, and exam performance. Bookmark this page for regular revision and stay updated with Higher Secondary School Teacher recruitment exams.