Which of the following is an indirect tax? MCQ with Answer and Explanation

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Which of the following is an indirect tax?

A. Goods and Services Tax (GST)

B. Corporate Tax

C. Income Tax

D. Wealth Tax

Answer: Option A

Solution (By JKSSB Mock Tests)

GST is an indirect tax because the liability to pay is on the seller, but the burden is passed on to the consumer.

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Subscription received in advance for a non-profit organisation is shown in the Balance Sheet as:

A. Income

B. Liability

C. Asset

D. Expenditure

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Correct Answer: Option B

Explanation:
It is a liability because it pertains to the future period.

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Question #2

The 'Integrated Reporting' framework is developed by:

A. ICAI

B. FASB

C. International Integrated Reporting Council (IIRC)

D. IFRS Foundation

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Correct Answer: Option C

Explanation:
IIRC (now part of IFRS Foundation) developed the International Framework.

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Question #3

In the financial statements of a sole trader, drawings are deducted from:

A. Gross profit

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D. Net profit

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Correct Answer: Option B

Explanation:
Drawings are not an expense; they reduce the owner's capital directly in the balance sheet.

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