Direct taxes are progressive in nature because: MCQ with Answer and Explanation

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Direct taxes are progressive in nature because:

A. Rate increases with income level

B. They are collected indirectly

C. Rate is same for all

D. They are only on goods

Answer: Option A

Solution (By JKSSB Mock Tests)

Direct taxes like income tax have higher rates for higher income slabs, making them progressive.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

The 'Trial Balance' is prepared to:

A. Prepare cash flow

B. Determine financial position

C. Check accuracy of posting

D. Ascertain profit

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Correct Answer: Option C

Explanation:
Primary purpose is to verify arithmetical accuracy of ledger postings.

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

Question #2

Which inventory valuation method is not permitted under Ind AS 2?

A. FIFO

B. LIFO

C. Specific identification

D. Weighted Average

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Correct Answer: Option B

Explanation:
Ind AS 2 does not permit LIFO as an acceptable method for inventory valuation.

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Question #3

The 'Trial Balance' includes:

A. Balances of all ledger accounts

B. Only nominal accounts

C. Only real and nominal accounts

D. Only personal account balances

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Correct Answer: Option A

Explanation:
It lists all ledger balances irrespective of account type.

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

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