This quiz works best with JavaScript enabled. Home > Accounting > Taxation > Taxation – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxation Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Sum of various heads is called A) Gross total income. B) Taxable income. C) Total income. D) None of these. Show Answer Correct Answer: A) Gross total income. 2. Income Tax is ..... as to subject matter. A) Personal, poll or capitation tax. B) Property Tax. C) Excise Tax. D) Direct Tax. Show Answer Correct Answer: C) Excise Tax. 3. A tax that must be paid on particular legal documents that have to be officially checked, especially when buying a house A) Wealth tax. B) Corporation tax. C) Stamp duty. D) Inheritance tax. Show Answer Correct Answer: C) Stamp duty. 4. Taxes are voluntary proportional contributions from persons and property levied by the law-making body of the State by virtue of its sovereignty for the support of the government and all public needs. A) TRUE. B) FALSE . Show Answer Correct Answer: B) FALSE . 5. Value-added tax is an indirect tax. A) True. B) False. Show Answer Correct Answer: A) True. 6. What are the advantages of different tax systems? A) A progressive tax is designed to redistribute wealth and income. B) To ensure social equality, reduce the gap between the rich and the poor. C) Both A and B. D) None of above. Show Answer Correct Answer: C) Both A and B. 7. Taxed paper products, playing cards, dice A) Townshend Act. B) Quartering Act. C) Sugar Act. D) Stamp Act. Show Answer Correct Answer: D) Stamp Act. 8. An amount you can earn without paying tax on it ..... A) Tax relief. B) Tax break. C) Tax allowance. D) Flat tax. Show Answer Correct Answer: C) Tax allowance. 9. For which of the following Rules can be made by the Central Government u/s 156 of the Customs Act, 1962? A) Transaction Value. B) Form of Bill of Entry. C) Import & export manifest. D) Conditions for transshipment & removal of good without payment of duty. Show Answer Correct Answer: A) Transaction Value. 10. . Bonus paid by the employer to the employee is ..... A) Fully Taxable. B) Partly Taxable. C) Fully Exempted. D) None of these. Show Answer Correct Answer: A) Fully Taxable. 11. If Damon has a taxable income of $ 86450 what would he pay as a Medicare Levy being 2%? A) $ 1729. B) $ 1850. C) $ 1675. D) $ 1724. Show Answer Correct Answer: A) $ 1729. 12. The federal government's health care system for people age 65 and over A) Social Security. B) Medicare. C) US Healthcare. D) US Retirement Services Inc. Show Answer Correct Answer: B) Medicare. 13. Tax as to subject matter or object A) Property Tax. B) Ad Valorem Tax. C) Specific Tax. D) Direct Tax. Show Answer Correct Answer: A) Property Tax. 14. A Tax which directly paid to the goverment is known as ..... A) Direct tax. B) Indirect tax. C) Perquisite tax. D) Excise duty. Show Answer Correct Answer: A) Direct tax. 15. Under Income tax Act "Person" means A) Hindu Undivided Family. B) Company. C) Local Authority. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 16. Why might a country tax cars based on their engine size? A) They want to encourage the purchase of solar powered vehicles. B) Larger vehicles may generate more pollution and use more gas. C) They want to encourage greater public transport use. D) They want to discourage red necks & hoons who usually buy large cars. Show Answer Correct Answer: B) Larger vehicles may generate more pollution and use more gas. 17. ..... is the inherent power of the sovereign, exercised through the legislature, to impose burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of government. A) Police Power. B) Eminent Domain. C) Taxation. D) Fiscal Revenue. Show Answer Correct Answer: C) Taxation. 18. Which of the following are some of the deductible expenses for income tax purposes? A) Special tax on import of goods. B) Direct / indirect loss on sale / exchange of movable property between related persons. C) Additional taxes, interest on late payments and penalties arising from violations of legal provisions. D) Income tax. Show Answer Correct Answer: A) Special tax on import of goods. 19. Income Tax computed on ..... A) Capital. B) Income. C) Fixed Assets. D) Business Gain. Show Answer Correct Answer: B) Income. 20. How many heads are there for the computation of income A) Three. B) Six. C) Five. D) Four. Show Answer Correct Answer: C) Five. ← PreviousNext →Related QuizzesAccounting QuizzesTaxation Quiz 1Taxation Quiz 2Taxation Quiz 3Taxation Quiz 4Taxation Quiz 5Taxation Quiz 6Taxation Quiz 7Taxation Quiz 8Taxation Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books