MCQs Accounting and Auditing MCQs

Accounting and Auditing MCQs | Business Taxation MCQs for Competitive Exams

Accounting and Auditing MCQs | Business Taxation MCQs for Competitive Exams
Written by CSS Times

Government policies that focus on changing taxes and government spending are called:
(a) Fiscal policies
(b) Monetary policies.
(c) Incomes policies.
(d) Supply-side policies.
Answer: a

Who is Tax payer?
(a) Businessman
(b) Assessee
(c) Trust
(d) Farmer
Answer: b

The most important source of income of a government is:
(a) Foreign loans
(b) Sprinting of new money
(c) Sale of government property
(d) Taxes
Answer: d

Progressive taxes:
(a) Increase government revenue
(b) Bring equality in distribution of incomes
(c) Compel rich people to be honest
(d) Both a & b
Answer: d

Which is a principle of taxation?
(a) Principle of honesty
(b) Principle of morality
(c) Principle of secrecy
(d) Principle of economy
Answer: d

In Pakistan, the authority to levy taxes lies with:
(a) Prime minister of Pakistan
(b) President of Pakistan
(c) Federal cabinet of ministers
(d) National assembly
Answer: d

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This tax is a good example of ability to pay principle of taxes:
(a) Excise tax on cigarettes
(b) Highway toll tax
(c) Proportional sales tax
(d) Personal income tax
Answer: d

An expansionist fiscal policy could include:
(a) Lower interest rates
(b) Increased lending by the banks
(c) An increase in corporation tax
(d) An increase in discretionary government spending
Answer: d

Which of the following is involved with fiscal policy?
(a) Income tax
(b) National insurance
(c) VAT
(d) All of these
Answer: d

The tax is___________:
(a) National income
(b) Domestic income
(c) Per capita income
(d) Both A and B
Answer: a

Fiscal deficit in the budget means:
(a) Revenue deficit plus the net borrowings of the government
(b) Budgetary deficit plus the net borrowings of the government
(c) Capital deficit plus revenue deficit
(d) Primary deficit minus capital deficit
Answer: b

Trading on equity’ means:
(a) Use of equity share capital for trade financing
(b) Use of fixed-interest borrowed funds for getting a higher return on equity
(c) Having no borrowed funds
(d) Trading in equity share capital
Answer: b

It is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.
(a) Economics
(b) Public administration
(c) Government administration
(d) Public finance
Answer: d

The purview of public finance is considered to be threefold: governmental effects on
(a) efficient allocation of resources
(b) distribution of income
(c) macroeconomic stabilization
(d) All of these
Answer: d

Which of the following are the essential components of a public financial management system?
(a) Resource generation
(b) Resource allocation
(c) Expenditure management (resource utilization)
(d) All of these
Answer: d

Which basically deals with all aspects of resource mobilization and expenditure management in government?
(a) Public Finance Management (PFM)
(b) Economics
(c) Public administration
(d) Government administration
Answer: a

The following subdivisions form the subject matter of public finance.
(a) Public expenditure, Public revenue
(b) Public debt, Federal finance
(c) Financial administration
(d) All of these
Answer: d

Debt Equity Ratio refers to the ratio of:
(a) Debtors to equity share capital
(b) Long term debt to shareholders’ equity
(c) Total debt to equity share capital
(d) Long term debt to equity share capital
Answer: b

Cost of goods sold refers to:
(a) Sales minus gross profits
(b) Sales minus profits
(c) Cost of materials, labour and overheads
(d) None of the above
Answer: a

Current Ratio is the ratio of:
(a) Current assets to current liabilities
(b) Current liabilities to current assets
(c) Fixed assets to total liabilities
(d) Current assets to total liabilities
Answer: a

Which factor plays an important role in improving the standard of living of the people and economic development?
(a) Business
(b) Trade
(c) Industry
(d) Commerce
Answer: a

In order to take the spirit of tax reform forward and with a view to assist the field formations to increase the taxable, the existing Director General of Broadening of tax Base FBR is renamed as Director General, Directorate of Intelligence & Investigation, Inland Revenue on
(a) 25th March, 2010
(b) 25th March, 2011
(c) 25th March, 2012
(d) 25th March, 2013
Answer: b

It is payable by individuals, firms and companies which acquire an asset by purchase or a right to use for more than 20 years.
(a) Income Tax
(b) Federal Excise Duty
(c) Capital Value Tax
(d) Corporate Asset Tax
Answer: c

There is how many sections included in Income Tax Ordinance 2001
(a) 235 sections
(b) 240 sections
(c) 250 sections
(d) 260 sections
Answer: b

Ordinance is issued for the term of 4 months. Who promulgates the Ordinance?
(a) President
(b) Prime Minister
(c) Chief Minister
(d) Governor
Answer: a

The Income Tax Ordinance, 2001 extends to the whole of
(a) Pakistan
(b) Punjab
(c) KPK
(d) Balochistan
Answer: a

The Income Tax Ordinance, 2001 come into force on
(a) 1st July 2001
(b) 1st July 2002
(c) 1st July 2003
(d) 1st July 2004
Answer: b

“Accumulated profits” in relation to distribution or payment of a dividend, include:
(a) any reserve made up wholly or partly of any allowance, deduction, or exemption admissible under income tax Ordinance 2001
(b) for the purposes of [sub-clauses (a), (b) and (e) of clause (19) all profits of the company including income and gains of a trust up to the date of such distribution or such payment, as the case may be
(c) for the purposes of sub-clause (c) of clause (19), includes all profits of the company including income and gains of a trust up to the date of its liquidation;
(d) All of these
Answer: d

“Appellate Tribunal” means the Appellate Tribunal Inland Revenue established under section
(a) Section 130
(b) Section 132
(c) Section 135
(d) Section 137
Answer: a


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CSS Times

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