[**Virtual University Of Pakistan**Student Cafe] [~>VU-P!nD!<~] Fin 623 current quiz + bundles of solved quiz # 01, 02, 03 & 04 by me afaaq when me in mba 4th :-)

Which of the following income is chargeable to tax?

Select correct option:

Gross income from business

Income computed in line with provisions of Ordinance

Only basic salary of salaried person

Basic salary excluding allowances of a salaried person

Question # 2 of 10 ( Start time: 01:08:12 PM ) Total Marks: 1

An Individual will be termed as Short Term Resident under section 50 of the IT Ordinance 2001 provided:

Select correct option:

His period of stay equal to 183 days

The employee of Federal Government

The citizen of Pakistan

Resident solely by reason of the individual's employment

Question # 3 of 10 ( Start time: 01:08:41 PM ) Total Marks: 1

In Income Tax Ordinance 2001 tax concessions meant for which of the following?

Select correct option:

Reduction in tax liability

Reduction in tax rate

Reduction in taxable Income

All of the given options

Question # 4 of 10 ( Start time: 01:09:09 PM ) Total Marks: 1

Any Pakistan-source income which Pakistan is not permitted to tax under a tax treaty shall be _____.

Select correct option:

Wholly Taxable

Wholly Exempt

Partly Exempt

Not mention in Ordinance

Question # 5 of 10 ( Start time: 01:10:05 PM ) Total Marks: 1

Which one of the following principle of tax emphasized, that the taxation policy should be designed in such a way to boost business atmosphere and the investment environment in the country?

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Convenience

Judicious

Capacity to Pay

Business friendly

Question # 6 of 10 ( Start time: 01:10:24 PM ) Total Marks: 1

Which of the following incomes are treated as agriculture income?

Select correct option:

Agro based industry

Spontaneous forests

Interest received by a farmer on lending

Income from land situated in Pakistan used for agriculture

Question # 7 of 10 ( Start time: 01:11:15 PM ) Total Marks: 1

Which of the following methods of accounting is compulsory to adopt for Sole-proprietorship?

Select correct option:

Accrual Basis

Cash Basis

Both accrual and cash bases

Free to choose any kind of base

Question # 8 of 10 ( Start time: 01:11:39 PM ) Total Marks: 1

Which of the following is the main tool of Fiscal Policy?

Select correct option:

Taxes

Deficit Financing

Subsidies

Transfer Payments

Question # 9 of 10 ( Start time: 01:12:00 PM ) Total Marks: 1

The Fiscal year is a period of ____ months arbitrarily chosen for tax purposes.

Select correct option:

3

6

12

18

Question # 10 of 10 ( Start time: 01:12:25 PM ) Total Marks: 1

Suppose a money lender give loan to a farmer of Rs. 100,000. After the due time the farmer pay back the loan in shape of agriculture produce amounting Rs. 110,000 to money lender. What will be the tax treatment of Rs. 110,000?

Select correct option:

Tax will be charged only on Rs. 100,000

Tax will be charged only on Rs. 10,000

Tax will be charged only on Rs. 110,000

Exempt as Agriculture Income

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