The 'Penalty' for under-reporting of income is: MCQ with Answer and Explanation

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The 'Penalty' for under-reporting of income is:

A. 100% of tax

B. No penalty

C. 50% of tax payable on under-reported income

D. 200% of tax

Answer: Option C

Solution (By JKSSB Mock Tests)

Penalty for under-reporting is 50% of tax on under-reported income; for misreporting, 200%.

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

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Question #1

Depreciation is provided on:

A. Fixed assets (tangible)

B. Fictitious assets

C. Intangible assets only

D. Current assets

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Correct Answer: Option A

Explanation:
Depreciation is charged on tangible fixed assets like machinery, buildings to reflect wear and tear.

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

Question #2

A factory produces 10,000 units. Variable cost per unit is ₹50; fixed cost ₹2,00,000. The selling price per unit to achieve break-even at 8,000 units is:

A. ₹80

B. ₹90

C. ₹75

D. ₹70

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Correct Answer: Option C

Explanation:
BEP units = Fixed cost / (Selling price - Variable cost). 8,000 = 2,00,000 / (SP - 50) => SP - 50 = 2,00,000/8,000 = 25 => SP = ₹75.

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Question #3

CSR (Corporate Social Responsibility) is mandatory under the Companies Act 2013 for companies with a net profit of at least:

A. Rs 10 Crores

B. Rs 50 Crores

C. Rs 5 Crores

D. Rs 1 Crore

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Correct Answer: Option C

Explanation:
Section 135 mandates CSR for companies with Net Worth ≥ 500 Cr, Turnover ≥ 1000 Cr, or Net Profit ≥ 5 Cr.

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