Correct Answer:
C. Taxes should be paid according to the benefits received from government services
User charges such as tolls follow the benefit principle.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
The benefit principle of taxation says that:
Related MCQs
The normal balance of a revenue account is:
A.
Debit
B.
Zero
C.
Depends on the auditor
D.
Credit
Correct answer is:
D. Credit
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Fixed costs are Rs. 60,000, selling price is Rs. 50 per unit and variable cost is Rs. 30 per unit. The break-even point in units is:
A.
3,000 units
B.
2,000 units
C.
1,200 units
D.
6,000 units
Correct answer is:
A. 3,000 units
Do you agree with this answer?
Overhead is under-absorbed when:
A.
Actual overhead is less than absorbed overhead
B.
Actual overhead equals absorbed overhead
C.
Actual overhead is greater than absorbed overhead
D.
Budgeted overhead is zero
Correct answer is:
C. Actual overhead is greater than absorbed overhead
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According to IPSAS 23, taxes and transfers are classified as:
A.
Exchange transactions
B.
Non-exchange transactions
C.
Capital transactions
D.
Contingent assets
Correct answer is:
B. Non-exchange transactions
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According to the NPV rule, an independent project should be accepted if its NPV is:
A.
Negative
B.
Positive
C.
Zero or negative
D.
Equal to the initial investment
Correct answer is:
B. Positive
Do you agree with this answer?
Under the Constitution of Pakistan, the Auditor-General can be removed from office:
A.
In the like manner and on the like grounds as a judge of the Supreme Court
B.
By any minister
C.
By the Prime Minister alone
D.
By the Chief Secretary
Correct answer is:
A. In the like manner and on the like grounds as a judge of the Supreme Court
Do you agree with this answer?
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