The 'Equalisation Levy' at 6% applies to: MCQ with Answer and Explanation

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The 'Equalisation Levy' at 6% applies to:

A. All digital services

B. All goods

C. Specified services like online advertisement provided by non-residents

D. E-commerce operators

Answer: Option C

Solution (By JKSSB Mock Tests)

Equalisation levy at 6% is on consideration for specified digital services by non-residents; a separate 2% levy on e-commerce supply.

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

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Question #1

When a firm borrows money from a bank, what is the impact on the accounting equation?

A. Assets increase, Equity increases

B. Liabilities increase, Equity decreases

C. No change in total assets

D. Assets increase, Liabilities increase

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Correct Answer: Option D

Explanation:
Cash/Bank (Asset) increases, and Bank Loan (Liability) increases simultaneously.

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

Question #2

An 'Error of Principle' occurs when:

A. A transaction is completely omitted

B. A capital expenditure is treated as revenue expenditure

C. Posting to wrong personal account

D. Wrong amount is posted

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Correct Answer: Option B

Explanation:
Error of principle violates accounting principles, e.g., incorrect classification between capital and revenue.

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

Question #3

A ledger is a book of:

A. Rectification entry

B. Original entry

C. Adjusting entry

D. Final entry

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Correct Answer: Option D

Explanation:
The ledger is the book of final entry because transactions are ultimately classified and posted here from the journal.

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

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