S1: Direct taxes are progressive in nature. S2: Indirect taxes are regressive in nature. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: Direct taxes are progressive in nature. S2: Indirect taxes are regressive in nature. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S1 only
C. Both S1 and S2
D. S2 only
Answer: Option C
Solution (By JKSSB Mock Tests)
Direct taxes (like Income Tax) are progressive, meaning the tax rate increases as income increases. Indirect taxes (like GST) are regressive, as they take a larger percentage of income from low-income earners than high-income earners. Both are correct.
A: The Going Concern concept justifies the charging of depreciation. R: Depreciation allocates the cost of an asset over its useful life. Choose the correct option.
A.A is true but R is false
B.Both A and R are true but R is NOT the correct explanation of A
C.Both A and R are true and R is the correct explanation of A
Explanation:
The Going Concern concept assumes the business will continue indefinitely, which justifies capitalizing asset costs and depreciating them over their useful lives. R correctly explains the mechanism of depreciation.
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