Correct Answer:
C. Sales tax
Indirect taxes are levied on goods or services and the burden can be shifted to consumers.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
An example of an indirect tax is:
Related MCQs
State-owned enterprises (SOEs) in Pakistan are typically audited by:
A.
Only by their own accountants
B.
Only by tax inspectors
C.
Only by the police
D.
Chartered accountant firms appointed under law, and may also be subject to audit by the Auditor-General
Correct answer is:
D. Chartered accountant firms appointed under law, and may also be subject to audit by the Auditor-General
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Under the weighted average cost method, the cost per unit is calculated as:
A.
The cost of the latest purchase
B.
The cost of the oldest purchase
C.
Total cost of goods available divided by total units available
D.
The selling price less profit
Correct answer is:
C. Total cost of goods available divided by total units available
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Bank charges shown on the bank statement but not yet recorded in the cash book should be:
A.
Deducted from the cash book balance
B.
Added to the cash book balance
C.
Deducted from the bank statement balance
D.
Ignored until next year
Correct answer is:
A. Deducted from the cash book balance
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The present value of a perpetuity paying Rs. 5,000 per year at a discount rate of 10% is:
A.
Rs. 5,000
B.
Rs. 50,000
C.
Rs. 500
D.
Rs. 55,000
Correct answer is:
B. Rs. 50,000
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Actual price is Rs. 12, standard price is Rs. 10 and 500 units were purchased. The material price variance is:
A.
Rs. 1,000 adverse
B.
Rs. 1,000 favorable
C.
Rs. 5,000 adverse
D.
Rs. 600 adverse
Correct answer is:
A. Rs. 1,000 adverse
Do you agree with this answer?
The pre-tax cost of debt is 10% and the tax rate is 30%. The after-tax cost of debt is:
A.
7%
B.
3%
C.
13%
D.
10%
Correct answer is:
A. 7%
Do you agree with this answer?
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