Test: Public Finance


15 Questions MCQ Test Business and Commercial Knowledge | Test: Public Finance


Description
This mock test of Test: Public Finance for CA CPT helps you for every CA CPT entrance exam. This contains 15 Multiple Choice Questions for CA CPT Test: Public Finance (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Public Finance quiz give you a good mix of easy questions and tough questions. CA CPT students definitely take this Test: Public Finance exercise for a better result in the exam. You can find other Test: Public Finance extra questions, long questions & short questions for CA CPT on EduRev as well by searching above.
QUESTION: 1

Which of the following is a union tax?

Solution:
QUESTION: 2

Which of the following is not a union tax?

Solution:

Tax is levied by government on their citizens to generate income for undertaking projects to boost the economy of the country and to raise the standard of living of its citizens. Union tax is a tax paid to central government. Stamp duties on financial documents, Taxes on railway freights and fares are not the examples of Union tax.

QUESTION: 3

Consider the following statements and identify the right ones.
i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.
ii. The constitution also provides for transferring certain tax revenues from union list to states.

Solution:
QUESTION: 4

The tax levied by the union government on income of individuals is known as

Solution:

It is based on the principle of ability to pay. The tax levied by the union government on income of individuals is known as income tax.

QUESTION: 5

The tax on net income of companies is

Solution:

The tax on net income of companies is corporate tax. Tax rates are uniform for all categories of companies.

QUESTION: 6

Consider the following statements and identify the right ones.
i. Wealth tax is collected from productive as well as unproductive assets
ii. Estate duty was a type of inheritance tax of large estates

Solution:

Wealth tax is collected from unproductive assets only. Estate duty was abolished in 1985.

QUESTION: 7

Which of the following taxes is/are withdrawn or abolished?

Solution:

Interest tax was withdrawn in 2000-01, estate duty abolished in 1985 and gift tax in 1998-99.

QUESTION: 8

The most important source of revenue to the states is

Solution:

Sales tax is the tax on sale of goods and is influenced by the value added tax system.

QUESTION: 9

The tax levied on the interstate trade of goods is

Solution:

The tax levied on the interstate trade of goods is the central sales tax.

QUESTION: 10

Consider the following statements and identify the right ones.
i. The 14th finance commission is headed by C. Rangarajan
ii. The recommendations of the commission will come into effect from April, 1, 2015

Solution:

The 14th finance commission was appointed in 2013. It is headed by Y V Reddy.

QUESTION: 11

The difference between revenue expenditure and revenue receipts is

Solution:

Revenue deficit= revenue expenditure “revenue receipts

QUESTION: 12

The difference between revenue deficit and grants for creation of capital assets is called

Solution:

Effective revenue deficit= revenue deficit-grants for creation of capital assets.

QUESTION: 13

The difference between total expenditure and total receipts is

Solution:

Budget deficit= total expenditure-total receipts

QUESTION: 14

The difference between total expenditure and total receipts except loans and other liabilities is called

Solution:

Fiscal deficit= total expenditure-total receipts except loans and other liabilities.

QUESTION: 15

The difference between fiscal deficit and interest payment during the year is called

Solution:

Primary deficit= fiscal deficit-interest payments.

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