The 'Deferred Tax' on account of timing differences is calculated using: MCQ with Answer and Explanation

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The 'Deferred Tax' on account of timing differences is calculated using:

A. Enacted tax rates that will apply in the periods when the differences reverse

B. Current year tax rate

C. Average tax rate

D. Minimum Alternate Tax rate

Answer: Option A

Solution (By JKSSB Mock Tests)

Deferred tax is measured using tax rates that have been enacted or substantively enacted by the reporting date.

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

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Question #1

In ratio analysis, 'Stock Turnover Ratio' indicates:

A. Fixed asset efficiency

B. The number of employees

C. Debt repayment capacity

D. How quickly inventory is sold

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Correct Answer: Option D

Explanation:
Stock turnover = Cost of goods sold / Average stock, measuring inventory management efficiency.

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Question #2

GST is a destination-based tax. This means:

A. Tax accrues to the origin state

B. Tax is retained by the centre

C. Tax accrues to the state where goods/services are consumed

D. Tax is divided equally among all states

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Correct Answer: Option C

Explanation:
Under destination principle, the consuming state gets the SGST portion.

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Question #3

ITR-4 (Sugam) is for:

A. Trusts

B. Presumptive income taxpayers

C. Companies

D. Partnership firms

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Correct Answer: Option B

Explanation:
ITR-4 is for individuals/HUFs/firms (other than LLP) having income from business/profession under presumptive taxation.

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

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