Correct Answer:
C. People with higher income or wealth should pay more tax
It supports progressive taxation.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
The ability-to-pay principle of taxation says that:
Related MCQs
Audit risk is the risk that the auditor:
A.
Loses the client
B.
Charges a lower audit fee
C.
Gives an inappropriate opinion when the financial statements are materially misstated
D.
Does not attend the physical inventory count
Correct answer is:
C. Gives an inappropriate opinion when the financial statements are materially misstated
Do you agree with this answer?
The historical cost concept requires assets to be recorded at:
A.
Current market value always
B.
Their original purchase cost
C.
Replacement cost always
D.
Expected selling price
Correct answer is:
B. Their original purchase cost
Do you agree with this answer?
The four perspectives of the Balanced Scorecard are:
A.
Sales, purchase, production and finance
B.
Cost, revenue, profit and loss
C.
Assets, liabilities, equity and income
D.
Financial, customer, internal business process, and learning and growth
Correct answer is:
D. Financial, customer, internal business process, and learning and growth
Do you agree with this answer?
A machine costs Rs. 100,000, has a residual value of Rs. 10,000 and a useful life of 5 years. Annual straight-line depreciation is:
A.
Rs. 18,000
B.
Rs. 20,000
C.
Rs. 22,000
D.
Rs. 90,000
Correct answer is:
A. Rs. 18,000
Do you agree with this answer?
Pre-audit means that:
A.
Bills and claims are checked before payment is made
B.
Accounts are checked after payment
C.
The audit is done by the court
D.
Audit is skipped
Correct answer is:
A. Bills and claims are checked before payment is made
Do you agree with this answer?
Net profit is Rs. 50,000 and sales are Rs. 400,000. The net profit margin is:
A.
8%
B.
20%
C.
12.5%
D.
125%
Correct answer is:
C. 12.5%
Do you agree with this answer?
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