The 'Deferred Tax Asset' is recognised when: MCQ with Answer and Explanation

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The 'Deferred Tax Asset' is recognised when:

A. Taxable income is higher than accounting income due to timing differences

B. There is no difference

C. Losses are incurred

D. Accounting income is higher

Answer: Option A

Solution (By JKSSB Mock Tests)

When taxable income > accounting income, entity will pay more tax now but less in future, creating a deferred tax asset.

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

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Question #1

The 'Theory of Constraints' (TOC) in cost management focuses on:

A. Increasing inventory

B. Reducing all costs

C. Identifying and managing the bottleneck operation

D. Reducing quality

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Correct Answer: Option C

Explanation:
TOC aims to maximise throughput by managing constraints.

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Question #2

The 'Audit Evidence' is more reliable if:

A. Obtained from management

B. Oral

C. Internally generated

D. Obtained from independent external sources

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Correct Answer: Option D

Explanation:
External evidence is generally more reliable than internal evidence.

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Question #3

Which of the following is a direct tax?

A. Excise duty

B. GST

C. Income tax

D. Customs duty

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Correct Answer: Option C

Explanation:
Income tax is a direct tax as the burden falls directly on the taxpayer. GST, excise, customs are indirect taxes.

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

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