Which of the following is a direct income? MCQ with Answer and Explanation

Which of the following is a direct income?
A. Commission received
B. Interest on investment
C. Sale of scrap
D. Discount received
Answer: Option C
Solution (By JKSSB Mock Tests)
Sale of scrap is directly related to production, thus a direct income credited to Trading Account. Discount, commission, interest are indirect.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Revised Return' under Income Tax can be filed:
A. Any time
B. Only once
C. Within one year
D. Before the end of the assessment year or completion of assessment, whichever is earlier

Correct Answer: Option D


Explanation:
Revised return can be filed up to 3 months before the end of relevant assessment year or before completion of assessment, whichever is earlier.

Question #2
The 'Book Profit' for MAT calculation under Section 115JB includes:
A. Taxable income
B. Net profit as per P&L after certain adjustments (additions/deletions)
C. Cash profit
D. Only net profit as per P&L

Correct Answer: Option B


Explanation:
Book profit under MAT is computed by making specified adjustments to net profit as per financial statements.

Question #3
The term 'Matching Concept' requires that:
A. Assets must match liabilities
B. Income must match expenditure
C. Debits must match credits
D. Expenses must be matched with the revenues they help to generate

Correct Answer: Option D


Explanation:
The matching concept dictates that expenses incurred in a period must be recognized in the same period as the revenues they helped to generate.