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. It is levied on essential commodities

B. The rate of tax increases as income increases

C. The rate of tax decreases as income increases

D. The rate of tax remains constant

Answer: Option B

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 process of transferring entries from journal to ledger is called:

A. Posting

B. Recording

C. Journalizing

D. Balancing

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Correct Answer: Option A

Explanation:
Posting is the process of transferring debit and credit amounts from journal to respective ledger accounts.

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

Question #2

Closing stock is valued at:

A. Cost Price or Market Value, whichever is lower

B. Market (Net Realizable) Value

C. Cost Price or Market Value, whichever is higher

D. Cost Price

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Correct Answer: Option A

Explanation:
Based on the principle of conservatism (prudence), inventory is valued at Cost or Net Realizable Value (Market Value), whichever is less.

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Question #3

The 'Discount Column' in the three-column cash book is:

A. Only totalled and then posted to ledger

B. Not used

C. Balanced

D. Used only for bank reconciliation

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Correct Answer: Option A

Explanation:
Discount columns are not balanced; their totals are posted to discount allowed/received accounts.

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

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