Correct Answer:
B. Charges the same percentage rate at all income levels
The tax rate remains constant as income changes.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
A proportional (flat) tax:
Related MCQs
Which Article of the Constitution of Pakistan provides for reports of the Auditor-General to be submitted to the President to be laid before Parliament?
A.
Article 10
B.
Article 62
C.
Article 199
D.
Article 171
Correct answer is:
D. Article 171
Do you agree with this answer?
Repayment of a long-term bank loan is classified as a cash flow from:
A.
Operating activities
B.
Investing activities
C.
Non-cash activities
D.
Financing activities
Correct answer is:
D. Financing activities
Do you agree with this answer?
The imprest cash system in a government office means that:
A.
No cash is ever kept
B.
Cash is deposited daily with no records
C.
All payments are made in kind
D.
A fixed amount of cash is kept for petty expenses and replenished on submission of vouchers
Correct answer is:
D. A fixed amount of cash is kept for petty expenses and replenished on submission of vouchers
Do you agree with this answer?
Net working capital is calculated as:
A.
Total assets minus total liabilities
B.
Current assets plus current liabilities
C.
Current assets minus current liabilities
D.
Fixed assets minus long-term debt
Correct answer is:
C. Current assets minus current liabilities
Do you agree with this answer?
Accounts receivable are Rs. 100,000 and annual credit sales are Rs. 730,000. Average collection period (365-day year) is:
A.
73 days
B.
50 days
C.
30 days
D.
7.3 days
Correct answer is:
B. 50 days
Do you agree with this answer?
Pakistan Investment Bonds (PIBs) are:
A.
Short-term overnight instruments
B.
Shares of the State Bank
C.
Foreign currency notes
D.
Medium to long-term government debt securities
Correct answer is:
D. Medium to long-term government debt securities
Do you agree with this answer?
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