This quiz works best with JavaScript enabled. Home > Finance > Accounting > Taxation > Taxation – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxation Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... 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) Taxation. B) Fiscal Revenue. C) Police Power. D) Eminent Domain. Show Answer Correct Answer: A) Taxation. 2. 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. 3. Income Tax computed on ..... A) Fixed Assets. B) Income. C) Capital. D) Business Gain. Show Answer Correct Answer: B) Income. 4. How many heads are there for the computation of income A) Four. B) Three. C) Six. D) Five. Show Answer Correct Answer: D) Five. 5. What taxes come out of a person's paycheck and pay for a retirement program for older people? A) Sales Tax. B) Property Tax. C) Medicare Tax. D) Social Security Tax. Show Answer Correct Answer: D) Social Security Tax. 6. Money paid by the government to sick and unemployed people A) Tariffs. B) Income tax. C) Estate tax. D) Social security. Show Answer Correct Answer: D) Social security. 7. 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. 8. 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. 9. The Government of India wishes to help the very poorest people.Which policy would be most likely to achieve this? A) Lowering indirect taxation. B) Lowering capital gains tax. C) Lowering inheritance tax. D) Lowering housing subsidies. Show Answer Correct Answer: A) Lowering indirect taxation. 10. 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. 11. 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. 12. 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. 13. 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. 14. 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. 15. Assessment year is known as A) The year in which assessee find excuse to not to pay any taxes. 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 earn the income. Show Answer Correct Answer: B) The year in which assessee pays the tax on income earn in PY. 16. It is a tax on the purchase of a good or service A) Income tax. B) Payroll tax. C) Consumption tax. D) Value added tax. E) Inheritance tax. Show Answer Correct Answer: C) Consumption tax. 17. 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. 18. This kind of tax means that the more money you earn, the higher the rate of tax you have to pay. A) Tax break. B) Income tax. C) Progressive tax. D) Flat rate. Show Answer Correct Answer: C) Progressive tax. 19. They should make everyone ..... a foreign language. A) Learnt. B) Learned. C) Learning. D) Learn. Show Answer Correct Answer: D) Learn. 20. 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) Theoretical Justice. B) Siombiotic Relationship. C) Fiscal Adequacy. D) Administrative Feasibility. Show Answer Correct Answer: C) Fiscal Adequacy. 21. Taxes people pay on the land they own A) Property taxes. B) Estate taxes. C) Income tax. D) Tariff. Show Answer Correct Answer: A) Property taxes. 22. 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) 3 years before, 1 year. B) 1 year before, 2 years. C) 1 year before, 3 years. D) 2 years before, 2 years. Show Answer Correct Answer: B) 1 year before, 2 years. 23. 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. 24. 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. 25. The primary purpose of taxation on the part of the government is to provide funds or property with which to promote the general welfare and the protection of its citizens and to enable it to finance its multifarious activities. A) False. B) True. Show Answer Correct Answer: B) True. 26. Which one of the below taxes is included in the GST? A) Central sales tax. B) Central excise duty. C) VAT. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. Which one of the below will not be added to supply value? A) Interest. B) GST. C) Commission. D) Late fee. Show Answer Correct Answer: B) GST. 28. In which circumstances will the greatest amount of the tax be borne by the consumer? A) PED-ELASTIC, PES-INELASTIC. B) PED-ELASTIC, PES-INELASTIC. C) PED-INELASTIC, PES-ELASTIC. D) PED-INELASTIC, PES-INELASTIC. Show Answer Correct Answer: C) PED-INELASTIC, PES-ELASTIC. 29. Income tax payable by Mr. Lee is RM2 419.50. His salary was deducted monthly by RM 150.00 for monthly tax deduction (PCB). Does Mr. Lee need to pay any more income tax after the monthly deductions? A) No, he will get refund of RM 2 269.50 from IRB. B) Yes, he needs to pay RM 2 269.50. C) Yes, he needs to pay RM 619.50. D) No, he will get refund of RM 619.50 from IRB. Show Answer Correct Answer: C) Yes, he needs to pay RM 619.50. 30. Which word is not in use in word combinations with "tax" ? A) Charge. B) Levy. C) Impose. D) Levi. Show Answer Correct Answer: D) Levi. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesTaxation Quiz 1Taxation Quiz 2Taxation Quiz 3Taxation Quiz 4Taxation Quiz 5Taxation Quiz 6Taxation Quiz 7Taxation Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books