The 'Section 44AE' presumptive scheme is for: MCQ with Answer and Explanation

Question

Share Report Error

The 'Section 44AE' presumptive scheme is for:

A. Manufacturers

B. Professionals

C. Transporters (heavy goods vehicles)

D. Retail traders

Answer: Option C

Solution (By JKSSB Mock Tests)

Section 44AE is for plying, hiring or leasing goods carriages.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

A high Inventory Turnover Ratio generally indicates:

A. Low sales volume

B. Efficient inventory management and fast sales

C. Overstocking

D. Slow-moving inventory

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Correct Answer: Option B

Explanation:
It means the company replenishes and sells its inventory quickly, pointing to strong sales and efficient management.

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

Question #2

A capital expenditure of ₹5,000 erroneously recorded as revenue expenditure will result in:

A. Understatement of profit

B. Overstatement of assets

C. No effect on profit

D. Overstatement of profit

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Correct Answer: Option A

Explanation:
Capital expenditure should be capitalized; if charged as revenue, expenses increase, profit is understated.

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

Question #3

Cash flow from operating activities includes:

A. Repayment of loan

B. Issue of shares

C. Cash received from customers

D. Sale of machinery

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Correct Answer: Option C

Explanation:
Cash from customers is operating activity. Sale of machinery is investing, issue of shares and loan repayment are financing.

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

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