Tax evasion is: MCQ with Answer and Explanation

Question
Tax evasion is:
A. Legal use of tax laws to reduce liability
B. Government policy to waive taxes
C. Postponement of tax payment legally
D. Illegal non-payment or underpayment of taxes
Answer: Option D
Solution (By JKSSB Mock Tests)
Tax evasion involves illegal practices like hiding income or inflating expenses to avoid paying true tax liability.
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 statements best describes the 'Money Measurement Concept'?
A. All transactions and events are recorded in terms of money.
B. Only profitable transactions are recorded.
C. Only cash transactions are recorded.
D. All assets are recorded at market value.
Discuss
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Correct Answer: Option A

Explanation:
The money measurement concept states that only those transactions which can be expressed in monetary terms are recorded in the books of accounts.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
In a merger, Company A (profit ₹10,00,000, 2,00,000 shares) acquires Company B (profit ₹5,00,000, 1,00,000 shares). A issues 1 share for every 2 shares of B. What is the post-merger EPS of Company A?
A. ₹7.00
B. ₹6.00
C. ₹5.60
D. ₹5.00
Discuss
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Correct Answer: Option B

Explanation:
Total Post-merger Profit = 10,00,000 + 5,00,000 = ₹15,00,000. New shares issued by A = 1,00,000 / 2 = 50,000. Total shares of A = 2,00,000 + 50,000 = 2,50,000. Post-merger EPS = 15,00,000 / 2,50,000 = ₹6.00.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The term 'Variance' in budgetary control refers to:
A. The total budget
B. The cost of production
C. The difference between budgeted and actual performance
D. The profit margin
Discuss
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Correct Answer: Option C

Explanation:
Variance is the difference between the budgeted (standard) cost or revenue and the actual cost or revenue, used for performance evaluation.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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