Professional Documents
Culture Documents
2. A tax that exacts a higher proportion of income from higher-income households than from
lower-income households is a:
a. marginal tax rate.
b. progressive tax.
c. excise tax.
d. regressive tax.
4. The total amount of tax you pay divided by your income is your:
a. tax base.
b. average tax rate.
c. personal exemption.
d. standard deduction.
5. A theory of fairness holding that taxpayers should contribute to the government in the form
of taxes in proportion to the benefits that they receive from public expenditures is the:
a. vertical equity.
b. horizontal equity.
c. ability-to-pay principle.
d. benefits-received principle.
7. Tax shifting:
a. results in the burden of the tax falling on those who were not the ones initially
responsible for paying it.
b. is less likely with broad-based taxes than with partial taxes.
c. None of the other answer options.
d. All of the other answer options.
10. The principle which states that, all else equal, a tax that does not distort economic decisions
is preferable to one that does is the:
a. ability-to-pay principle.
b. None of the other answer options.
c. principle of neutrality.
d. principle of second best.
13. Households derive their income from all of the following sources EXCEPT:
a. the government.
b. utility.
c. property.
d. None of the other answer options.
14. About 64 percent of the personal income in Canada in 1999 was derived from:
a. property.
b. government.
c. human capital.
d. wages and salaries.
17. The age group with the highest incidence of poverty in Canada in 1997 was:
a. families with household head aged 55 to 64.
b. families with household head aged 65 and over.
c. families with household head aged 24 to 34.
d. families with household head aged under 24.
18. Social contract theory refers to a theory of distributional justice developed by:
a. Karl Marx.
b. John Rawls.
c. Lyndon Johnson.
d. John Stuart Mill.
2.(b)
3.(d)
4.(b)
5.(d)
6. (b)
7.(d)
8.(c)
9.(d)
10.(c)
11. (d)
12.(d)
13.(b)
14.(d)
15.(d)
16. (a)
17.(d)
18.(b)
19.(a)
20.(c)
2. All of the following are types of properties that are exempt from property taxes except:
a. Private homes
b. Religious Organizations
c. Charitable Organizations
d. Public Educational Buildings
a. Gasoline Taxes
b. Cigarette Taxes
c. Property Taxes
d. Alcohol Taxes
8. Over one-half the money spent by state and local governments goes to just three services.
Which of the following is not one of these services?
a. Public Education
b. Public Welfare
c. Parks and Recreation
d. Health Care
9........................ is defined as a dollar per thousand dollars of assessed value of property and is
used to calculate a property owner's tax bill.
a. Mill
b. Progressive Tax
c. Assessed Value
d. Tax Burden
12. A.......................... tax system places a relatively large tax burden on upper-income people and
a relatively small tax burden on lower-income people.
a. Progressive
b. Proportional
c. Regressive
13. A............................ tax system places a relatively large tax burden on lower-income people
and a relatively small tax burden on upper-income people.
a. Progressive
b. Proportional
c. Regressive
14. A.................................. tax system takes the same percentage of each person's income,
regardless of whether the income is high, medium, or low.
a. Proportional
b. Regressive
c. Progressive
15. ...............................is defined as the total amount of taxes paid as a percentage of a person's
income.
a. Marginal Tax
b. Tax Revenue
c. Revenue System
d. Tax Burden
16. All states except................................... require their state, via state constitutional or statutory
requirements, to balance their budget.
a. Texas
b. All states require a balanced budget
c. North Carolina
d. Vermont
19. Which of the following is the fastest growing source of revenue for state and local
governments?
a. The property tax
b. User fees
c. The sales tax
d. None of the above.
20. ..............................are bonds issued by governments that pledge their "full faith and credit,"
including tax revenues, to repayment.
a. General Obligation Bonds
b. General Revenue Bonds
c. Revenue Bonds
d. Expenditure Bonds
2.(a)
3.(c)
4.(b)
5.(c)
6. (b)
7.(b)
8.(c)
9.(a)
10.(d)
11. (a)
12.(a)
13.(c)
14.(a)
15.(d)
16. (d)
17.(a)
18.(b)
19.(b)
20.(a)
2. Eric, who has lived in the Netherlands for the whole of his life, arrives in the UK on 1 June
2012 and remains in the UK until 31 December 2012, when he returns permanently to the
Netherlands. His UK residence status for 2012-13 is:
a. Resident and ordinarily resident
b. Resident but not ordinarily resident
c. Ordinarily resident but not resident
d. Neither resident nor ordinarily resident
3. In 2012-13, Lily (who is resident and ordinarily resident in the UK for the year) earns a gross
salary from her UK employment of 45,000. PAYE of 7,600 is deducted from this income.
She owns a holiday home in France and receives rents of 2,250 for the year. This is the net
figure after withholding tax of 25% has been deducted.
Her income tax payable for the year is:
a. 9,084
b. 1,484
c. 734
d. 284
5. Interest on UK government securities is exempt from UK income tax if the recipient is not ----in the UK. Fill in the blank.
a. Domiciled
b. Resident
c. Resident and ordinarily resident
d. Ordinarily resident
6. Haxmore Ltd, a UK resident company, owns 100% of the share capital of two other UK
companies and 80% of the share capital of a company resident in Italy.
Haxmore Ltd has three associated companies. True or False?
a. True
b. False
7. In the year to 31 March 2013, a UK resident company receives overseas income of 9,000 (net)
from which 10% tax has been deducted at source. The companys only other income is a UK
trading profit of 80,000. There are no associated companies. What is the UK corporation tax
liability for the year?
a. 18,000
b. 17,000
c. 16,000
d. 15,000
8. The profits of a controlled foreign company which are apportioned to a UK company are
charged to corporation tax at the UK companys average rate of tax. True or False?
a. True
b. False
9. In the year to 31 March 2013, a UK resident company made a UK trading profit of 100,000.
The company's only other income consisted of rents received of 52,500 (net) from an
investment property in Germany. These rents were received net of withholding tax of 25%. The
company has no associated companies.
The credit for double tax relief that will be given in the corporation tax computation for the year
will be:
a. 13,125
b. 17,500
c. 14,000
d. nil
10. In the year to 31 March 2013, a UK resident company made a UK trading profit of 250,000
and received net overseas income of 25,350 (net of 22% withholding tax). These were the
company's only sources of income. The company also paid a qualifying charitable donation of
5,000.
For double tax relief purposes, the charitable donation will be allocated as a deduction from the
company's overseas income. True or False?
a. True
b. False
11. Which of the following types of income is not specifically exempt from income tax?
a. Statutory redundancy pay
b. Income from Individual Savings Accounts
c. Any benefit in kind provided to employees by an employer
d. Income from National Savings Certificates
12. The basic rate of income tax on non-savings income for tax year 2011-12 is:
a. 20%
b. 10%
c. 40%
d. 50%
13. If a married couple (or civil partners) receive joint income, the amount of that income will
normally be divided equally between them for tax purposes. True or False?
a. True
b. False
14. A taxpayer has taxable income for 2011-12 (after deducting the personal allowance) of
75,200. None of the income is derived from savings or dividends. The income tax liability for
the year is:
a. 15,040
b. 23,080
c. 30,080
d. 37,600
15. A taxpayer has taxable income for 2011-12 (after deducting the personal allowance) of
185,300. None of the income is derived from savings or dividends. The income tax liability for
the year is:
a. 92,650
b. 74,120
c. 70,650
d. 37,060
16. Which of the following types of income is received by individuals without deduction of
basic rate tax?
a. Loan interest paid by UK companies
b. Building society interest
c. Patent royalties
d. Bank interest received on a National Savings bank account
17. In 2011-12, an individual receives net building society interest of 792. The equivalent gross
income is:
a. 792
b. 1,320
c. 880
d. 990
18. In 2011-12, George has property income of 8,000 and net bank interest of 4,000. He claims
the personal allowance of 7,475. What is the income tax borne for the year?
a. 901.50
b. 849.00
c. 1,105.00
d. 552.50
19. In 2011-12, an individual receives a net dividend of 648. The equivalent gross income is:
a. 720
b. 810
c. 648
d. 6,480
20. In 2011-12, Steven has business profits of 34,125, net bank interest of 1,240 and net
dividends of 9,000. He claims the personal allowance of 7,475. What is the income tax payable
for the year after subtracting tax deducted at source?
a. 7,360
b. 6,050
c. 8,280
d. 6,290
2.(b)
3.(c)
4.(d)
5.(d)
6. (a)
7.(b)
8.(a)
9.(c)
10.(b)
11. (c)
12.(a)
13.(a)
14.(b)
15.(c)
16. (d)
17.(d)
18.(a)
19.(a)
20.(b)
2. A U.S. citizen earns $10,000 of rental income from her property in Italy. The rental income
will not be subject to U.S. tax because it is considered foreign source income.
a. True
b. False
3. A citizen of France will only be subject to U.S. taxation if he spends 183 days or more in the
United States during the year.
a. True
b. False
4. All foreign taxes paid by a U.S. corporation can be claimed as credits on its U.S. tax return.
a. True
b. False
5. A U.S. corporation's gross profit from sale of inventory it manufactures in the United States
will be treated entirely as U.S. source income.
a. True
b. False
6. One of the goals of an income tax treaty between the United States and other countries is to
reduce the withholding taxes imposed on cross-border payments such as dividends, interest,
and royalties.
a. True
b. False
7. An individual owning 100 percent of a Dutch corporation will be eligible for a deemed paid
foreign tax credit on dividends received from the corporation.
a. True
b. False
8. Subpart F of the Internal Revenue Code was created to prevent the deferral of U.S. taxation
on certain types of passive income earned by foreign corporations controlled by U.S.
shareholders.
a. True
b. False
9. Which of the following persons is not a "U.S. shareholder" of a controlled foreign corporation
(CFC) for subpart F purposes?
a. A U.S. corporation owning 25 percent of the CFC
b. A U.S. citizen owning 10 percent of the CFC
c. A U.S. citizen owning 5 percent of the CFC
d. A U.S. trust owning 10 percent of the CFC
10. Which of the following is not a "chargeable person" for CGT purposes?
a. An individual who is resident and ordinarily resident in the UK
b. A company which is resident in the UK
c. A partner in a UK partnership
d. A trustee of a UK trust
12. Which of the following could give rise to a capital gain (or allowable loss)?
a. A gift of an asset to a charity
b. A transfer of an asset between a husband and wife who live together during the tax year
in which the transfer occurs
c. A disposal caused by the death of the taxpayer
d. The receipt of compensation on the destruction of an asset
13. A taxpayer has a single capital gain in 2012-13 of 18,000. The gain does not qualify for
entrepreneur's relief and there are no other gains or losses in the year.
The taxpayer's taxable income for the year (after deducting the personal allowance) is 20,000
and there are no Gift Aid donations or pension contributions during the year.
14. A taxpayer has a single capital gain in 2012-13 of 15,600. The gain does not qualify for
entrepreneur's relief and there are no other gains or losses in the year.
The taxpayer's taxable income for the year (after deducting the personal allowance) is 50,000
and there are no Gift Aid donations or pension contributions during the year.
The CGT liability for the year is:
a. 900
b. 4,368
c. 1,400
d. 2,808
15. A taxpayer has a single capital gain in 2012-13 of 22,500. The gain does not qualify for
entrepreneur's relief and there are no other gains or losses in the year.
The taxpayer's taxable income for the year (after deducting the personal allowance) is 30,000
and there are no Gift Aid donations or pension contributions during the year.
The CGT liability for the year is:
a. 2,142
b. 5,863
c. 2,895
d. 3,332
16. A taxpayer has a capital loss brought forward from the previous tax year of 2,000. In 201213 he has capital gains of 18,200 and allowable losses of 700. What is the CGT assessment for
2012-13?
a. 17,500
b. 15,500
c. 6,900
d. 4,900
17. Payments on account of capital gains tax fall due on 31 January in the tax year concerned
and on the following 31 July. True or False?
a. True
b. False
18. Repayment supplement is calculated at a lower rate than the rate at which interest is
charged on overdue income tax. True or False?
a. True
b. False
19. Which of the following types of income is not specifically exempt from income tax?
a. Statutory redundancy pay
b. Income from Individual Savings Accounts
c. Any benefit in kind provided to employees by an employer
d. Income from National Savings Certificates
20. The basic rate of income tax on non-savings income for tax year 2012-13 is:
a. 20%
b. 10%
c. 40%
d. 50%
2.(b)
3.(b)
4.(b)
5.(b)
6.(a)
7.(b)
8.(a)
9.(c)
10.(b)
11(c)
12.(d)
13.(a)
14.(c)
15.(c)
16.(d)
17.(b)
18.(a)
19.(c)
20.(a)
1. Which two of the following are defined as sources of customs and excise revenue?
a. Petroleum Revenue Tax
b. VAT
c. Fuel Duties
d. Both B and c
2. Which two of the following are the most accurate indicators of the governments budgetary
situation (fiscal stance) in any given year?
a. Public Sector Net Cash Requirement
b. Income Tax Schedules
c. Public Sector Net Borrowing
d. Both A and C
3. In the following five questions you will be given a description of a particular aspect of
taxation. Which one of the expressions listed underneath most accurately fits the description?
A tax system in which the marginal rate of taxation is higher than the average rate.
a. A proportional tax system
b. A welfare maximising tax system
c. A progressive tax system
d. A tax system which encourages additional effort
4. Results in the income method giving a smaller value for the National Income than the
expenditure method.
6. A statistical relationship between tax revenue and tax rates which argues against composite
tax rates above 45%.
a. The Laffer curve
b. The indifference curve
c. The implicit marginal tax rate curve
d. The ratio of direct to indirect taxation
7. In which circumstance would indifference curve analysis predict that a fall in income tax
would increase incentives to work?
a. Income effect outweighs substitution effect
b. Substitution effect is zero
c. Income effect is zero
d. Substitution effect outweighs income effect
8. Taxes on expenditures (VAT and Customs and Excise) provide more tax receipts for
government than taxes on incomes (Income Tax, Corporation Tax, Petroleum, Revenue Tax).
a. True
b. False
a. True
b. False
10. The UK is one of the most highly taxed countries in the developed world in terms of tax
revenue as a percentage of GDP.
a. True
b. False
11. The allocation of revenues from extra taxes to specific outcomes is known as the regulator.
a. True
b. False
12. The large reduction in numbers of low income households facing implicit marginal tax rates
of 100% suggests some progress in removing the poverty trap.
a. True
b. False
13. The Chance Dice Corporation had taxable income (excluding capital gains) of $16 million.
Under the Revenue Reconciliation Act of 1993, the firm's $10,000 of realized capital gains will be
taxed at .................
a. 39 percent
b. 35 percent
c. 34 percent
d. the average tax rate of the firm
d. annually
16. Accounting.com has purchased 3-year class equipment for $100,000. It uses the MACRS
method of depreciation. What is tax depreciation for the fourth year?
a. $0
b. $7,410
c. $25,000
d. $33,333
17. In finance we refer to the market where existing securities are bought and sold as the
........................ market.
a. money
b. capital
c. primary
d. secondary
a. The economic unit that considers itself most in need of funds receives funds first
followed by those who are less in need.
b. Receipt of funds is rotated over time so that each economic unit can receive them in turn.
c. The largest economic units receive the funds first followed by smaller firms if sufficient
funds are available.
d. The economic unit that is willing to pay the highest expected return for a given risk level
receives the funds.
20. What mechanism ensures that large firms who benefit from tax laws pay some minimum
amount of tax?
a. Annual minimum tax.
b. Alternative minimum tax.
c. Minimum tax law.
d. Corpulent minimum tax.
2.(d)
3.(c)
4.(a)
5.(c)
6. (a)
7.(d)
8.(b)
9.(a)
10.(b)
11. (b)
12.(a)
13.(b)
14.(b)
15.(a)
16. (b)
17.(d)
18.(c)
19.(d)
20.(b)
3. An individual is said to be resident in India in a previous year (in which the February month
has 29 days) if he is in India in that year for a period or periods amounting in all to 182 days or
more,
a. 182,
b. 183,
c. 60,
d. 150
4. The assessee is charged to income-tax in the assessment year following the previous year:
a. A non-resident business firm which shipped goods on 1.5.210 at Visakhapatnam Port in
Andhra Pradesh
b. An employee left India to USA on 1.8.2010 with no intention of returning
c. ABC firm which discontinued its business on 1.9.2010
d. An employee-assessee of a University who worked during 1.4.09 to 30.03.2010
6. Expenditure incurred by an employer on medical treatment and stay abroad of the employee
shall not be taxed in the case of .............................
a. an employee whose gross total income before including the said expenditure does not
exceed Rs. 2 lakhs.
b. an employee whose income under the head "Salaries" exclusive of all monetary
perquisites does not exceed Rs. 2 lakhs,
c. an employee whose income under the head "Salaries" exclusive of all non-monetary
perquisites does not exceed Rs. 2 lakhs,
d. all employees irrespective of their amount of gross total income/the amount of income
under the head "Salaries".
7. Gross Total Income' means aggregate of income computed under various heads and after
allowing deduction under
a. True
b. False
8. If a person is resident and ordinarily resident of India, his income earned outside India is
taxable in the country in which he earned that income.
a. True
b. False
9. Where a person does basic operations in lands and later sells the saplings grown by him in a
nursery owned by him, the same will be agricultural income. If the basic operations are not
done by the assessee and the saplings are sold in his nursery, the same will still be regarded as
agricultural income.
a. True
b. False
10. If an employer transfers second hand motor car to the employee, the perquisite is valued at a. Actual cost less depreciation @ 30% for every completed year under straight line method
b. Actual cost less depreciation @ 20% for every completed year under WDV method
c. Actual cost less depreciation @ 30% for every completed year under WDV method
d. Actual cost less depreciation @ 20% for every completed year under SLM method.
12. The following is not taxable as income under the head "Salaries":a. Commission received by a full-time director;
b. Remuneration received by a partner;
c. Allowances received by an employee;
d. Free accommodation given to an employee.
14. Which of the following examples would be deductible as an expense on the corporation's
income statement?
a. Interest paid on outstanding bonds.
b. Cash dividends paid on outstanding common stock.
c. Cash dividends paid on outstanding preferred stock.
d. All of the above.
15. A corporation that receives $1,000 in dividends from another corporation, of which they
have owned 10% for one full year, will be taxed on how much of those dividends?
a. All $1,000 of the dividends.
b. None of the dividends since it is from another corporation.
c. $100 (10% of $1,000) since they owned a 10% position for at least 6 months.
d. $300 (30% of $1,000) since 70% of dividends is tax exempt.
16. In finance we refer to the market where new securities are bought and sold for the first time
as the .............................. market.
a. money
b. capital
c. primary
d. secondary
17. Limited liability companies (LLCs) generally possess no more than two of the following four
(desirable) characteristics: (1) limited liability, (2) centralized management, (3) unlimited life,
and (4) the ability to transfer ownership interest without prior consent of the other owners. The
two characteristics most likely to be absent in LLCs are............................
a. limited liability and centralized management
b. centralized management and unlimited life
c. centralized management and the ability to transfer ownership interest without prior
consent of the other owners
d. unlimited life and the ability to transfer ownership interest without prior consent of the
other owners
18. Which of the following is an advantage of a corporation that is not an advantage as a limited
partner in a partnership?
a. Limited liability.
b. Easy transfer of ownership position.
c. Double taxation.
d. All of the above are advantages that the corporation has over the limited partner.
20. What is potentially the biggest advantage of a small partnership over a sole proprietorship?
a. Unlimited liability.
b. Single tax filing.
c. Difficult ownership resale.
d. Raising capital.
2.(a)
3.(a)
4.(d)
5.(d)
6. (a)
7.(b)
8.(b)
9.(a)
10.(b)
11. (a)
12.(b)
13.(a)
14.(a)
15.(d)
16. (c)
17.(d)
18.(b)
19.(c)
20.(d)
3. A person who neither intends to hold nor holds any title to the goods or services is called
a. Dealer
b. Service tax provider
c. Pure Agent
d. Manufacturer
5. The importer of service is liable to pay service tax only when the service provider having
a. No place of business in India
b. Place of business in India
6. The service tax paid on input services claimed as Cenvat credit after the export of service
a. Cannot be claimed any rebate
b. Can be claimed rebate (i.e. duty drawback)
c. Can be claimed as refund
d. None of the above
7. If the immovable property in respect of which service is rendered outside India the service is
considered an export
a. Only when payment came from overseas.
b. Partly from overseas
c. Irrespective of where the payment has come from
d. Even without payment received from an importer.
8. The value of any taxable service, as the case may be, does not include
a. Value of services collected by rail travel agent
b. Services provide by the consultant
c. The rail fare collected by rail travel agent
d. None of the above
9. Which of the following services does not come under export of service?
a. Air transport of passengers embarking for international travel
b. Export of services with respect to immovable property
c. Export of services with respect to management consultancy services
d. None of the above.
10. Service tax liability arises only when the taxable turnover of the previous year exceeds
a. 9,00,000
b. 8,00,000,
c. 7,00.000
d. 10,00,000
11. No service tax will be levied on value of goods and material supplied to the service recipient
while providing service, provided Cenvat Credit on such goods and material is
a. not taken
b. taken
c. partly reversed
d. none of the above
17. Services provided to United Nations employees for their personal purposes is
a. Not liable to pay service tax
b. Partly liable to pay service tax
c. Liable to pay service tax
d. None of the above
18. Exemption turnover of Rs. 10000 dollar for previous year it is the value of taxable service
rendered and for the current year
a. Value of taxable service received
b. Value of taxable services rendered
c. Value of taxable services partly received and partly rendered
d. None of the above.
19. Sales tax and expenses in connection with the proceedings for the assessment of sales tax are
allowed as business expenditure
a. True
b. False
20. Form________________is used for applying for registration under Service Tax.
a. ST-2
b. ST-3
c. ST-1
d. ST-4
2.(b)
3.(c)
4.(d)
5.(a)
6. (b)
7.(c)
8.(c)
9.(a)
10.(d)
11. (a)
12.(d)
13.(b)
14.(a)
15.(b)
16. (b)
17.(c)
18.(a)
19.(a)
20.(c)
3. Vacant urban land (on which construction is permissible) owned by aperson since 1960
5. Urban unused land held by an assessee, for industrial purposes (whether or not construction
is started) and which was acquired:
a. On April 1, 2007
b. On March 31, 2007
6. Urban land held by an assesses for industrial purposes (as construction of factory will be
started during November 2009, it is used for agricultural purposes on temporary basis) and it
was acquired on
a. April 1, 2007
b. March 31, 2007
7. Land acquired in 1965 (it may be used for construction of any building residential or
commercial) and
a. Situated within the jurisdiction of a municipality having population of less than 10,000
b. Situated within the jurisdiction of a municipality have population of 10,000 or more
c. Situated within 6 kilometres [i.e., the notified distance vide Notification No.SO 871(E)]
from Amristar
d. Both B and C
8. Shares, debentures, fixed deposits in bank, plant and machinery, units of a mutual fund,
amount recoverable from Government, sundry debtors, goodwill, stockintrade
a. True
b. False
9. In the cash book of an individual/HUF opening balance on March 31, 2009 is 1,85,000, out of
which the assessee deposits.1,35,000 in his current account with Citibank before the close of
banking hours on
a. True
b. False
12. What are the earnings per share (EPS) for a company that earned $100,000 last year in aftertax profits, has 200,000 common shares outstanding and $1.2 million in retained earning at the
year end?
a. $100,000
b. $6.00
c. $0.50
d. $6.50
13. The first step in the establishment of a charitable, not-for-profit organization (NPO) is to:
a. Apply to the IRS for exemption from federal income taxes.
b. Establish a legal identity for the NPO separate from the individuals who joined together
with a charitable purpose.
c. Prepare by-laws that show how the business of the organization will be conducted.
d. Elect officers of the not-for-profit organization.
14. A state might regulate a nonprofit corporation that operates in its state by all of the
following methods except:
a. License to conduct charitable gaming.
b. Registration of political lobbyists.
c. Exemption from sales and property taxes.
d. Approval of all disbursements.
15. Which of the following interactions with the Internal Revenue Service (IRS) are most likely
for a not-for-profit organization during the first stage in its life cycle?
a. Filing unrelated business income tax Form 990-T.
b. Reporting the dissolution of the tax-exempt organization.
c. Applying for exempt status on Form 1023 or 1024.
d. Filing information return Form 990.
16. Which of the following terms applies to a tax-exempt organization that is supported
primarily by donations from a small set of individuals and exists to make grants to other taxexempt organizations?
a. Public charity.
b. Private foundation.
c. Charitable organization.
d. Not-for-profit organization.
17. Incorporating documents that contain language helpful in ascertaining the charitable or taxexempt purpose of the organization include all of the following except:
a. By-laws.
b. Articles of incorporation.
c. Application to the IRS for tax-exempt status.
d. All of the above.
18. The largest number of tax-exempt entities are granted exemption under which section of the
following Internal Revenue Codes (IRC)?
a. IRC Sec. 501(c)3 charitable, religious, scientific, literary, educational, and testing for
public safety.
b. IRC Sec. 501(c)4 civic leagues, social welfare organizations, local employee associations,
community organizations.
c. IRC Sec. 501(c)6 business leagues, trade associations, chambers of commerce, real estate
boards.
d. IRC Sec. 501(c)7 social and recreational clubs, hobby clubs, country clubs.
19. A reason why the Form 990 was revised for tax years 2008 and beyond is to:
a. Enhance transparency about the organization.
b. Allow the IRS to efficiently assess noncompliance with regulations.
c. Minimize the burden of filing on tax-exempt organizations.
d. All of the above.
20. For which of the following types of abuse would the IRS most likely impose "intermediate
sanctions" on a tax-exempt entity?
a. Failure to file a Form 990 tax return on time.
b. Refusal to provide a copy of the Form 990 to an individual who requested it.
c. Excessive compensation paid to the executive director.
d. Imprudent investments that resulted in a loss for the entity.
2.(b)
3.(a)
4.(a)
5.(b)
6. (a)
7.(d)
8.(b)
9.(b)
10.(d)
11. (b)
12.(c)
13.(b)
14.(d)
15.(c)
16. (b)
17.(a)
18.(a)
19.(d)
20.(c)
4. The point of levy of tax for Aviation and other motor spirit is the point of
a. First sale in the State
b. Second sale in the State
c. First and Second sale in the State
d. Third sale in the State
5. Sale of taxable goods in the course of inter-state trade or commerce falling within the scope of
section 3 of the Central Sales Tax Act, 1956 are called
7. At the point of first sale in the state the following product attracts 32.55% of VAT
a. Petrol
b. Machinery
c. Liquor
d. Diesel Oil
8. Abbreviate ITC
a. Input Tax Code
b. Input Tax Credit
c. Initial Tax Credit
d. In-house Tax Credit
9. Sale of vegetables and fruits other than those cured, frozen, preserved, processed, dried,
dehydrated or canned are called
a. Exempted sales
b. Taxable sales
c. Partly exempted sales
d. Special sales
10. Kerosene sold through public distribution system will attract VAT rate
a. 0%
b. 1%
c. 4%
d. 12.50%
13. Goods that fall under the Schedule I will get Input Tax Credit
True
False
14. Generally sale of books, periodicals and journals are exempted goods under VAT.
a. True
b. False
15. VAT rates are common for all the products specified in Schedule V
a. True
b. False
16. Input Tax Credit (ITC) can be claimed if the inputs are used for
a. personnel purpose
b. distributing as free sample
c. captive consumption
d. business purpose
17. Every registered dealer must file return for each month on or before
a. 20th of the succeeding month
b. 10th of the succeeding month
c. 5th of the succeeding month
d. End of the current month
18. ITC can be claimed against inter-state sale only when those sales are supported by
a. Form D
b. Form H
c. Form C
d. Form I
19. The period covered by the return is called a Tax Period and will cover a
a. Calendar month
b. Calendar year
c. Half a month
d. Six months
20. The method under which tax is imposed at each stage of sales on the entire sale value and
the tax paid at the earlier stage is allowed as set-off is called
a. Subtraction method
b. Deductive method
2.(d)
3.(c)
4.(a)
5.(d)
6. (b)
7.(a)
8.(b)
9.(a)
10.(c)
11. (b)
12.(a)
13.(b)
14.(a)
15.(a)
16. (d)
17.(a)
18.(c)
19.(a)
20.(d)