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. S1 only
B. Both S1 and S2
C. S2 only
D. Neither S1 nor S2
Answer: Option B
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.
In cost accounting, the 'Economic Batch Quantity' (EBQ) formula is identical to the EOQ formula. If the setup cost per batch is ₹500, annual demand is 10,000 units, and carrying cost is ₹10 per unit per annum, what is the EBQ?
Explanation:
Coined in the Kingston Cotton Mill case, it means an auditor must exercise reasonable skill and care but isn't required to approach the audit with suspicion of fraud.
No comments yet. Be the first to start the discussion!