Under the Income Tax Act 1961, the year in which income is earned is called the: MCQ with Answer and Explanation

Question
Under the Income Tax Act 1961, the year in which income is earned is called the:
A. Accounting Year
B. Assessment Year
C. Financial Year
D. Previous Year
Answer: Option D
Solution (By JKSSB Mock Tests)
The Previous Year is the financial year in which the income is earned, which is assessed to tax in the immediately following Assessment Year.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is not a component of budgetary control?
A. Budgeting
B. Comparison of actuals with budgets
C. Corrective action
D. Tax filing
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Correct Answer: Option D

Explanation:
Budgetary control involves planning, measuring actual performance, comparing, and taking corrective action.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
S1: SEBI regulates the primary and secondary capital markets in India. S2: SEBI was established by a legislative act of Parliament. Which statement(s) is/are correct?
A. Both S1 and S2
B. S1 only
C. S2 only
D. Neither S1 nor S2
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Correct Answer: Option A

Explanation:
SEBI regulates both primary (new issues) and secondary (trading) markets to protect investors. It was initially established in 1988 and later given statutory powers through the SEBI Act, 1992. Both statements are correct.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A discount received from creditors is recorded in:
A. Journal Proper
B. Cash Book
C. Sales Book
D. Purchases Book
Discuss
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Correct Answer: Option B

Explanation:
Discount received is a cash/bank related item and is recorded in the Discount Received column of the Cash Book.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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