Correct Answer:
D. Income tax
A direct tax is levied directly on the person who bears the burden, e.g. income tax.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
An example of a direct tax is:
Related MCQs
Sales tax in the form of a value added tax (VAT) is levied on:
A.
Final retail price only, once
B.
Profits of companies
C.
Value added at each stage of production and distribution
D.
Wealth of individuals
Correct answer is:
C. Value added at each stage of production and distribution
Do you agree with this answer?
Which of the following is an example of a public sector fraud risk indicator?
A.
Payments approved with full documentation
B.
Competitive bidding with several bidders
C.
Payments split into smaller amounts to avoid approval limits
D.
Regular stock verification
Correct answer is:
C. Payments split into smaller amounts to avoid approval limits
Do you agree with this answer?
PIFRA stands for:
A.
Project to Improve Financial Reporting and Auditing
B.
Public Institution for Revenue Administration
C.
Planning Institute for Fiscal Reform and Accounting
D.
Project for Increasing Finance and Revenue Assessment
Correct answer is:
A. Project to Improve Financial Reporting and Auditing
Do you agree with this answer?
When shares are issued at a price above their par value, the excess is credited to:
A.
Retained earnings
B.
Share premium
C.
Revenue
D.
Loan account
Correct answer is:
B. Share premium
Do you agree with this answer?
The basic accounting equation is:
A.
Assets = Liabilities + Equity
B.
Assets = Liabilities - Equity
C.
Assets + Liabilities = Equity
D.
Equity = Assets + Liabilities
Correct answer is:
A. Assets = Liabilities + Equity
Do you agree with this answer?
The Public Sector Development Programme (PSDP) mainly finances:
A.
Defense salaries
B.
Federal development projects
C.
Interest payments
D.
Pensions
Correct answer is:
B. Federal development projects
Do you agree with this answer?
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