Input Tax Credit under GST is available for: MCQ with Answer and Explanation

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Input Tax Credit under GST is available for:

A. All goods and services

B. Personal consumption goods

C. Goods and services used for business purposes

D. Exempted supplies only

Answer: Option C

Solution (By JKSSB Mock Tests)

Input tax credit can be availed only on inputs used for business purposes, subject to conditions under GST law.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

Which of the following is an example of a 'Revenue Reserve'?

A. Capital redemption reserve

B. Securities premium

C. General reserve

D. Revaluation reserve

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Correct Answer: Option C

Explanation:
General reserve is created from revenue profits, hence a revenue reserve. Securities premium and capital redemption reserve are capital reserves. Revaluation reserve arises from revaluation of assets, also capital.

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Question #2

An increase in the value of a fixed asset is credited to:

A. Capital Reserve

B. Profit & Loss Account

C. Revaluation Reserve

D. General Reserve

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Correct Answer: Option C

Explanation:
Increase in value on revaluation is credited to Revaluation Reserve, as per AS 10.

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

Question #3

Which accounting concept requires that the life of the business be divided into smaller intervals for performance measurement?

A. Going Concern Concept

B. Materiality Concept

C. Matching Concept

D. Accounting Period Concept

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Correct Answer: Option D

Explanation:
The Accounting Period Concept artificially breaks the continuous life of a business into standard intervals (usually 12 months) for reporting purposes.

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

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