Which income is classified under 'Income from Other Sources'? MCQ with Answer and Explanation

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Which income is classified under 'Income from Other Sources'?

A. Capital gains on sale of shares

B. Salary received from an employer

C. Dividend income and winning from lotteries

D. Profit from a retail shop

Answer: Option C

Solution (By JKSSB Mock Tests)

Incomes that do not fall into the first four specific heads (like dividends, lottery winnings, bank interest) are taxed as Income from Other Sources.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

Zero-Based Budgeting (ZBB) requires managers to:

A. Keep all expenses at zero

B. Increase the budget by a flat zero percent

C. Base the new budget on last year's actuals

D. Justify every expense from scratch for every new period

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Correct Answer: Option D

Explanation:
ZBB starts from a 'zero base', requiring a fresh justification for all funding rather than relying on historical data.

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Question #2

A Value Added Statement is an important component of:

A. Social Accounting

B. Bank Reconciliation

C. Cost Sheet

D. Cash Flow Statement

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Correct Answer: Option A

Explanation:
A Value Added Statement shows how much wealth the company has created and how it is distributed among employees, government, providers of capital, and retained earnings.

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Question #3

A manager is entitled to a 5% commission on net profit BEFORE charging his commission. If profit is Rs 1,05,000, his commission is:

A. Rs 5,250

B. Rs 5,000

C. Rs 10,500

D. Rs 4,750

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Correct Answer: Option A

Explanation:
Commission = Profit * (Rate/100) = 1,05,000 * 5% = Rs 5,250.

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