The 'Anti-Profiteering Authority' under GST ensures: MCQ with Answer and Explanation

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The 'Anti-Profiteering Authority' under GST ensures:

A. Suppliers charge high prices

B. Companies do not make profit

C. Tax evasion is prevented

D. Benefits of tax rate reduction are passed to consumers

Answer: Option D

Solution (By JKSSB Mock Tests)

It ensures that reduction in tax rates or benefit of ITC is passed on as commensurate price reduction.

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

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Question #1

Social accounting is primarily concerned with:

A. Minimizing corporate taxes

B. Calculating national income and economic performance of the country

C. Maximizing shareholder wealth

D. Recording petty cash expenses

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Correct Answer: Option B

Explanation:
At a macro level, social accounting (or national income accounting) measures the economic activity, income, and expenditure of a nation.

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Question #2

The 'Monetary Policy Committee' (MPC) in India decides the:

A. Tax rates

B. Repo rate and other monetary policy instruments

C. Fiscal deficit target

D. Budget allocation

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Correct Answer: Option B

Explanation:
MPC is responsible for setting the policy repo rate to achieve inflation target.

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

Question #3

An unpaid electricity bill of Rs 5,000 at the end of the year requires an adjusting entry. It will:

A. Debit P&L A/c, Credit Cash

B. Debit Outstanding Expense, Credit Electricity A/c

C. Debit Electricity A/c, Credit Outstanding Expense

D. Debit Cash, Credit Electricity A/c

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Correct Answer: Option C

Explanation:
Recognizing the expense (Debit Electricity A/c) and creating the liability (Credit Outstanding Electricity Expense).

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

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