This quiz works best with JavaScript enabled. Home > Accounting > Taxation > Taxation – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxation Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What taxes come out of a person's paycheck and pay for a retirement program for older people? A) Sales Tax. B) Social Security Tax. C) Property Tax. D) Medicare Tax. Show Answer Correct Answer: B) Social Security Tax. 2. Money paid by the government to sick and unemployed people A) Income tax. B) Tariffs. C) Estate tax. D) Social security. Show Answer Correct Answer: D) Social security. 3. What is one of the ways for companies to avoid tax on profits? A) Companies can bring forward capital expenditure so that at the end of the year all the profits have been used up. B) Companies can subtract expenditures from taxable income. C) Both A and B are wrong. D) None of above. Show Answer Correct Answer: A) Companies can bring forward capital expenditure so that at the end of the year all the profits have been used up. 4. What is taxation? A) A way to delay the payment of tax to a later time. B) The tax people pay on their wages and salaries. C) A compulsory fee that individuals or corporations must pay to the government. D) None of above. Show Answer Correct Answer: C) A compulsory fee that individuals or corporations must pay to the government. 5. The Government of India wishes to help the very poorest people.Which policy would be most likely to achieve this? A) Lowering capital gains tax. B) Lowering housing subsidies. C) Lowering indirect taxation. D) Lowering inheritance tax. Show Answer Correct Answer: C) Lowering indirect taxation. 6. What did colonists in New York and and Philadelphia do when shipments of tea came to them? A) They threw the tea overboard. B) They burned the tea. C) They drank the tea. D) They refused the shipments and sent it back to England. Show Answer Correct Answer: D) They refused the shipments and sent it back to England. 7. Business includes any A) Trade & Commerce. B) Manufacture. C) Any Adventure in the nature of Trade, Commerce, Manufacture. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. What reductions from the transaction cost are permitted? A) Customer discounts, subject to terms and restrictions. B) Packing Fees, subject to terms and restrictions. C) Amount paid on the authority of the provider by the customer, subject to requirements. D) Freight expenses are borne by the provider in connection with CIF response to demand, subject to certain restrictions. Show Answer Correct Answer: A) Customer discounts, subject to terms and restrictions. 9. A Foreign Company which has its Control & Management partly situated in India A) A Non-Resident Company. B) A Resident Company. Show Answer Correct Answer: A) A Non-Resident Company. 10. Which of the following is NOT an objective of most government A) Stable prices. B) High unemployment. C) Balance of payment equilibrium. D) Improved standards of living. Show Answer Correct Answer: B) High unemployment. 11. Assessment year is known as A) The year in which assessee earn the income. B) The year in which assessee pays the tax on income earn in PY. C) The year in which assessee pay tax in advance. D) The year in which assessee find excuse to not to pay any taxes. Show Answer Correct Answer: B) The year in which assessee pays the tax on income earn in PY. 12. It is a tax on the purchase of a good or service A) Payroll tax. B) Consumption tax. C) Inheritance tax. D) Value added tax. E) Income tax. Show Answer Correct Answer: B) Consumption tax. 13. UNREALISED RENT MEANS A) NO TENANT. B) TENANT OCCUPYING THE HOUSE BUT NOT PAYING THE RENT. C) CHEQUE RECEIVED FOR RENT IS NOT REALISED. D) None of above. Show Answer Correct Answer: B) TENANT OCCUPYING THE HOUSE BUT NOT PAYING THE RENT. 14. This kind of tax means that the more money you earn, the higher the rate of tax you have to pay. A) Flat rate. B) Progressive tax. C) Income tax. D) Tax break. Show Answer Correct Answer: B) Progressive tax. 15. They should make everyone ..... a foreign language. A) Learned. B) Learn. C) Learning. D) Learnt. Show Answer Correct Answer: B) Learn. 16. The sources of revenue taken as a whole should be sufficient to meet the expanding expenditures of the government regardless of business conditions, export, taxes, trade balances, and problems of economic adjustment, this cannon of a sound tax system referred to as: A) Fiscal Adequacy. B) Theoretical Justice. C) Administrative Feasibility. D) Siombiotic Relationship. Show Answer Correct Answer: A) Fiscal Adequacy. 17. Taxes people pay on the land they own A) Income tax. B) Tariff. C) Estate taxes. D) Property taxes. Show Answer Correct Answer: D) Property taxes. 18. To avail the benefit of section 54, within a period of ..... or ..... after the date of transfer of the old house, the taxpayer should purchase a new residential house in India. A) 1 year before, 3 years. B) 2 years before, 2 years. C) 1 year before, 2 years. D) 3 years before, 1 year. Show Answer Correct Answer: C) 1 year before, 2 years. 19. There would be no ..... in a truly free market economy. A) Taxes. B) Trade. C) Social security tax. D) Supply and demand. Show Answer Correct Answer: C) Social security tax. 20. The amount and period that can be claimed depend on the number of years of employment and salary. A) False. B) True. Show Answer Correct Answer: B) True. ← 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