Which of the following describes 'Value Added' in social accounting? MCQ with Answer and Explanation

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Which of the following describes 'Value Added' in social accounting?

A. Gross Profit - Net Profit

B. Fixed Assets + Working Capital

C. Sales + Closing Stock

D. Sales - Cost of bought-in materials and services

Answer: Option D

Solution (By JKSSB Mock Tests)

Value added represents the wealth created by the firm, calculated as sales revenue minus the cost of materials/services bought from outside.

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Question #1

The primary objective of PFMS in India is to facilitate:

A. Just-in-time release of funds and end-to-end tracking of public funds

B. Stock market regulation

C. Printing of currency notes

D. Collection of corporate taxes

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Correct Answer: Option A

Explanation:
PFMS ensures transparency, tracking of fund utilization down to the lowest level, and Direct Benefit Transfers directly into beneficiaries' accounts.

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Question #2

The Income Tax Act, 1961 classifies income under how many heads?

A. Seven

B. Four

C. Six

D. Five

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Correct Answer: Option D

Explanation:
Heads of income: Salary, House property, Business/profession, Capital gains, Other sources. Total five heads.

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Question #3

The 'Presumptive Taxation' scheme under Section 44AD is for:

A. Small businesses with turnover up to ₹2 crore

B. Importers

C. Large corporates

D. Professionals only

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Correct Answer: Option A

Explanation:
Section 44AD allows eligible businesses to declare 8% (or 6% digital) of turnover as presumptive income.

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