The 'Income Tax Refund' received is: MCQ with Answer and Explanation

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The 'Income Tax Refund' received is:

A. Capital receipt

B. Liability

C. Revenue receipt

D. Deferred revenue

Answer: Option C

Solution (By JKSSB Mock Tests)

Income tax refund is a revenue receipt as it pertains to business profits.

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

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Question #1

Which of the following is not a function of ICAI?

A. Regulating the profession of chartered accountants

B. Collecting taxes

C. Conducting CA examinations

D. Issuing accounting standards

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Correct Answer: Option B

Explanation:
ICAI is a professional body, not a tax collection agency.

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Question #2

The 'Institute of Chartered Accountants of India' (ICAI) was established by:

A. SEBI

B. An Act of Parliament

C. A resolution of Government

D. RBI

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Correct Answer: Option B

Explanation:
ICAI was established by the Chartered Accountants Act, 1949.

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Question #3

A company's quick ratio is 1:1, current assets ₹2,00,000, inventory ₹40,000. Current liabilities are:

A. ₹2,00,000

B. ₹1,00,000

C. ₹1,60,000

D. ₹40,000

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Correct Answer: Option C

Explanation:
Quick assets = Current assets - Inventory = 2,00,000 - 40,000 = 1,60,000. Quick ratio = QA / CL = 1:1, so CL = ₹1,60,000.

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

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