S1: GST is a comprehensive indirect tax. S2: GST is levied on the supply of goods and services. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: GST is a comprehensive indirect tax. S2: GST is levied on the supply of goods and services. Which statement(s) is/are correct?
A. S1 only
B. Neither S1 nor S2
C. Both S1 and S2
D. S2 only
Answer: Option C
Solution (By JKSSB Mock Tests)
GST is a comprehensive, multi-stage, destination-based indirect tax. It is levied on every value addition, specifically on the supply of goods and services. Both statements are correct.

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Practice More Accountancy and Book Keeping Questions

Question #1
In financial management, the 'Cost of Capital' is:
A. The interest paid on loans
B. The minimum return required by investors
C. The total cost of setting up a business
D. The depreciation cost

Correct Answer: Option B


Explanation:
The cost of capital is the minimum rate of return that a company must earn on its investments to satisfy its investors and creditors.

Question #2
The 'Gratuity' is a:
A. Defined benefit plan
B. Termination benefit
C. Defined contribution plan
D. Short-term benefit

Correct Answer: Option A


Explanation:
Gratuity is a defined benefit plan as the employer's obligation is to provide a specific amount.

Question #3
A company purchased a machine for ₹2,00,000, installation ₹10,000, scrap value ₹10,000, life 10 years. Depreciation under SLM is:
A. ₹21,000
B. ₹20,000
C. ₹19,000
D. ₹18,000

Correct Answer: Option B


Explanation:
Cost = 2,00,000 + 10,000 = 2,10,000. Depreciable amount = 2,10,000 - 10,000 = 2,00,000. Annual depreciation = 2,00,000 / 10 = ₹20,000.