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 is same for all

B. They are only on goods

C. They are collected indirectly

D. Rate increases with income level

Answer: Option D

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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Which voucher is used for recording cash sales?

A. Debit voucher

B. Cash voucher

C. Journal voucher

D. Credit voucher

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Correct Answer: Option B

Explanation:
Cash sales involve receipt of cash, so a cash voucher (receipt voucher) is prepared.

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

Question #2

If an asset is purchased and a post-dated cheque is given, the transaction is immediately recorded in:

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B. Journal Proper

C. Sales Book

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Correct Answer: Option B

Explanation:
Until the post-dated cheque becomes currently payable, the transaction is treated as credit and recorded in the Journal Proper.

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Question #3

Which of the following is a 'Qualifying Asset' for borrowing cost capitalisation under AS 16?

A. Inventories routinely manufactured

B. A power plant under construction

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Correct Answer: Option B

Explanation:
A qualifying asset requires a substantial period to get ready for intended use/sale.

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

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