This quiz works best with JavaScript enabled. Home > Accounting > Taxation > Taxation – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxation Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Indirect taxes include: A) VAT, excises. B) Income tax, inheritance tax. C) Properly tax, land tax. D) All answers are correct. Show Answer Correct Answer: A) VAT, excises. 2. Mr. Mann owns a ranch that has 45 acres of land. Each year Mr. Mann pays $ 5, 340 in taxes on the land for his ranch. Which type of tax does Mr. Mann pay? A) Payroll Tax. B) Income Tax. C) Sales Tax. D) Property Tax. Show Answer Correct Answer: D) Property Tax. 3. Income Tax is ..... A) A direct tax. B) An indirect tax. C) A business tax. D) None of the above. Show Answer Correct Answer: A) A direct tax. 4. Customs Act, 1962 extends to A) Whole of India excluding Jammu & Kashmir. B) Whole of India. C) Whole of India excluding Jammu & Kashmir and Union Territories. D) Whole of India excluding Jammu & Kashmir and Special Economic Zones. Show Answer Correct Answer: B) Whole of India. 5. The Philippine revenues are derived from sources, except A) Taxes. B) Grants. C) Capital Revenue. D) Goods. Show Answer Correct Answer: D) Goods. 6. Which is not a basic principle of sound tax system? A) Equality. B) Administrative Feasibility. C) Fiscal Adequacy. D) Benefits-received Principle. Show Answer Correct Answer: D) Benefits-received Principle. 7. Strongest among the Inherent powers of the state A) Police Power. B) Eminent Domain. C) Taxation. D) All are equal. Show Answer Correct Answer: C) Taxation. 8. British merchants began to lose business because of the new taxes. They asked parliament to repeal the stamp act. What is a synonym for repeal? A) Burn. B) Cancel. C) Fly. D) Pizza. Show Answer Correct Answer: B) Cancel. 9. The due date for payment of PPh Article 23 by tax withholding agents is A) 5th of the following month. B) The 10th of the following month. C) The 15th of the following month. D) The 20th of the following month. Show Answer Correct Answer: B) The 10th of the following month. 10. How do we calculate the average rate of tax? A) Total Income divided by total tax x 100. B) Total Income Tax Paid divided by the Age Group x 100. C) Total Income Tax Paid divided by Income x 100. D) Total Income divided by the applicable tax bracket. Show Answer Correct Answer: C) Total Income Tax Paid divided by Income x 100. 11. A tax that only applies to certain products and is often called a "hidden" tax A) Excise tax. B) Sales tax. C) Income tax. D) Social Security tax. Show Answer Correct Answer: A) Excise tax. 12. Tax that is applied to manufactured goods A) Tariff. B) First part. C) Direct. D) Indirect. Show Answer Correct Answer: D) Indirect. 13. If a product is relatively elastic, an increase in sales tax will: A) Increase revenue for the government but decrease revenue for the seller. B) Decrease revenue for the government. C) Result in inelastic supply. D) Lead to increased demand for compliments and substitutes. Show Answer Correct Answer: B) Decrease revenue for the government. 14. Under the Customs Act, 1962, the rulemaking power is delegated to A) Central Board of Indirect Taxes and Customs (CBIC). B) Central Government. C) Respective State Governments. D) Partly to the Central Government and partly to the respective State Governments. Show Answer Correct Answer: B) Central Government. 15. Why do we need to pay taxes? A) To collect money to run the government. B) To collect money to buy car. Show Answer Correct Answer: A) To collect money to run the government. 16. What is Gabby's taxable income if she earns $ 59500 annually and has $ 1435 worth of deductions? A) $ 58055. B) $ 58065. C) $ 60935. D) $ 58165. Show Answer Correct Answer: B) $ 58065. 17. This tax is based on market value and the local government (county, city, school districts). A) Property tax. B) City tax. C) State tax. D) Local tax. Show Answer Correct Answer: A) Property tax. 18. New Regime in personal taxation allows deductions A) True. B) False. C) May be. D) None of above. Show Answer Correct Answer: B) False. 19. It is the State or political unit which has jurisdiction to impose a particular tax. A) Situs of Taxation. B) Life blood theory. C) Eminent Domain. D) Police Power. Show Answer Correct Answer: A) Situs of Taxation. 20. Agency business, rcd a sum of 5L from his principal for termination of agency. Compensation amount rcd is? A) Exempt as it is capital receipt. B) Exempt as it is ex-gratia payment. C) Fully taxable u/h PGBP. D) Taxable u/h IFOS. Show Answer Correct Answer: C) Fully taxable u/h PGBP. ← 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