A tax is said to be progressive when: MCQ with Answer and Explanation

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A tax is said to be progressive when:

A. The rate of tax increases as income increases

B. The rate of tax decreases as income increases

C. It is levied on essential commodities

D. The rate of tax remains constant

Answer: Option A

Solution (By JKSSB Mock Tests)

Progressive taxation means higher income earners pay a higher percentage of their income as tax, promoting wealth redistribution.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'Interim Financial Report' should include:

A. Full annual report

B. Condensed set of financial statements and selected explanatory notes

C. Only profit and loss

D. Only a condensed balance sheet

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Correct Answer: Option B

Explanation:
As per Ind AS 34, interim report includes condensed statements and notes.

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Question #2

Which of the following is not a financial statement?

A. Profit & Loss Account

B. Cash Flow Statement

C. Trial Balance

D. Balance Sheet

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Correct Answer: Option C

Explanation:
Trial balance is a working paper, not a financial statement.

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Question #3

S1: Internal audit is a part of internal control. S2: Internal audit is conducted by external auditors. Which statement(s) is/are correct?

A. Both S1 and S2

B. Neither S1 nor S2

C. S2 only

D. S1 only

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Correct Answer: Option D

Explanation:
Internal audit is a continuous appraisal system and a vital component of the internal control framework. It is conducted by the management's own staff or appointed internal auditors, not by external statutory auditors. S1 is correct, S2 is incorrect.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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