MCQ - Basic understanding of Tax System in India CA Foundation Notes | EduRev

Economics for CA CPT

Created by: Aditi Mittal

CA Foundation : MCQ - Basic understanding of Tax System in India CA Foundation Notes | EduRev

 Page 1


CPT Section C General Economics Chapter 5 Unit 4 
CA Shweta Poojari 
Page 2


CPT Section C General Economics Chapter 5 Unit 4 
CA Shweta Poojari 
MCQ’s 
Page 3


CPT Section C General Economics Chapter 5 Unit 4 
CA Shweta Poojari 
MCQ’s 
a. They are imposed according to the ability of the person to pay. 
b. The taxes creates civil consciousness. 
c. The revenue is income elastic. 
d. They do not require maintenance of accounts. 
Answer:d 
Explanation: Direct taxes also require maintenance of books of accounts for 
determination of income and tax thereon. 
Page 4


CPT Section C General Economics Chapter 5 Unit 4 
CA Shweta Poojari 
MCQ’s 
a. They are imposed according to the ability of the person to pay. 
b. The taxes creates civil consciousness. 
c. The revenue is income elastic. 
d. They do not require maintenance of accounts. 
Answer:d 
Explanation: Direct taxes also require maintenance of books of accounts for 
determination of income and tax thereon. 
a)Personal income tax. 
b)Excise duty. 
c)Sales tax.  
d)Service tax. 
Answer:- a 
Explanation:- In case of Excise duty, 
sales tax and service tax the burden 
is shifted to the consumer through a 
change in the price. Therefore these 
are indirect taxes. 
 
Page 5


CPT Section C General Economics Chapter 5 Unit 4 
CA Shweta Poojari 
MCQ’s 
a. They are imposed according to the ability of the person to pay. 
b. The taxes creates civil consciousness. 
c. The revenue is income elastic. 
d. They do not require maintenance of accounts. 
Answer:d 
Explanation: Direct taxes also require maintenance of books of accounts for 
determination of income and tax thereon. 
a)Personal income tax. 
b)Excise duty. 
c)Sales tax.  
d)Service tax. 
Answer:- a 
Explanation:- In case of Excise duty, 
sales tax and service tax the burden 
is shifted to the consumer through a 
change in the price. Therefore these 
are indirect taxes. 
 
a.Profession tax. 
b.Corporate income tax. 
c.VAT. 
d.Wealth tax. 
Answer:- c 
Exaplanation:- The incidence of tax 
in case of profession tax , 
corporate income tax and wealth 
tax falls on the person who pays 
them to the government unlike VAT 
the burden of which is shifted to 
the buyer of goods therefore it is 
indirect. 
 
Read More

Complete Syllabus of CA Foundation

Dynamic Test

Content Category

Related Searches

Free

,

past year papers

,

practice quizzes

,

Sample Paper

,

Exam

,

Important questions

,

ppt

,

mock tests for examination

,

Viva Questions

,

study material

,

Summary

,

MCQ - Basic understanding of Tax System in India CA Foundation Notes | EduRev

,

Semester Notes

,

Objective type Questions

,

video lectures

,

pdf

,

MCQ - Basic understanding of Tax System in India CA Foundation Notes | EduRev

,

Extra Questions

,

shortcuts and tricks

,

MCQs

,

MCQ - Basic understanding of Tax System in India CA Foundation Notes | EduRev

,

Previous Year Questions with Solutions

;