FIN623 Current Quiz

Question # 1 of 15 ( Start time: 06:37:44 PM ) Total Marks: 1

Valuation of stock is computes by the formula:
Select correct option:
A+B-C
A-B-C
A-B+CA+B+C

Valuation of Stock:

Cost of stock-in-trade disposed of (consumed) during the year shall be computed as under.

A+B-C

A: Opening stock

B: Stock acquired during the year

C: Closing stock.

Question # 2 of 15 ( Start time: 06:39:13 PM ) Total Marks: 1
Formula to compute the tax rate applies on gratuity received, “B” stands for;
Select correct option:
The total tax paid or payable by the employee for the three preceding tax years
The employee’s total taxable income for the three preceding tax yearsThe gratuity received by the employee
None of the given options


Question # 3 of 15 ( Start time: 06:40:07 PM ) Total Marks: 1
Non-Agricultural income includes which one of the following?
Select correct option:
Income from sale of wild grass
Income from fisheries
Royalty income of minesAll of the given options P19



Question # 4 of 15 ( Start time: 06:40:45 PM ) Total Marks: 1
Profit earned on debts is chargeable under
Select correct option:
Income from salary
Income from other sourcesIncome from business
Income from capital gains

Profit earned on debts in course business shall be chargeable to ‘income from business’.p66


Question # 5 of 15 ( Start time: 06:41:22 PM ) Total Marks: 1
If a business carried on by Non-resident person in Pakistan through permanent establishment what will be the tax treatment of the traveling expenditures born by the non-resident for spending his holidays in his home land?
Select correct option:Wholly taxable due to PE
Wholly taxable as no concerned with PE in Pakistan
Not permissible as deduction from the income of Non-resident
None of the given options


Question # 6 of 15 ( Start time: 06:42:21 PM ) Total Marks: 1
MTS stands for which of the following?
Select correct option:Minimum time scale
Minimum transfer Salary
Maximum time scale
Maximum transfer Salary

Concept of MTS (Minimum of Time Scale):

This is the starting point or minimum amount which is available to an employee under a time

Which one of the following sections defines minimum tax on resident companies?
Select correct option:
Section 110
Section 111Section 113
Section 115

Taxation of Companies

Minimum Tax on Resident Companies Sec. 113

Resident Company is subjected to minimum tax . 0.50% of its turnover for a tax year, even in cases where the company sustains loss.p73

Question # 8 of 15 ( Start time: 06:43:42 PM ) Total Marks: 1
Which of the following is the main tool of Fiscal Policy?
Select correct option:Taxes
Deficit Financing
Subsidies
Transfer Payments

Taxes are important instrument of Fiscal Policy

Question # 9 of 15 ( Start time: 06:44:16 PM ) Total Marks: 1
The Fiscal year is a period of ____ months arbitrarily chosen for tax purposes.
Select correct option:
3
612
18

Question # 10 of 15 ( Start time: 06:44:47 PM ) Total Marks: 1
If a depreciable asset disposes of with in a tax year than:
Select correct option:
Total depreciation deductions allowedNo depreciation deductions allowed
25% of depreciation deduction allowed
None of the given options

Deductions---Special Provisions

Depreciation (Sec. 22)

Deduction for depreciation allowed to a person if depreciable assets used in the person’s business in a tax year. Rate of depreciations shall be applied as specified in part 1 of 3rd schedule.

Written down value of a depreciable asset of a person as at the beginning of the tax year shall be;

a) where the asset was acquired in the tax year, the cost of the asset to the person as reduced by any

initial allowance under sec 23
b) in any other case, the cost of the asset to the person as reduced by the total depreciation

deductions ( including any initial allowance under sec 23 ) allowed to the person in respect to the

asset in previous tax years.

• No depreciation deductions allowed where in a tax year a person disposes of a depreciable

asset;


Which of the following is the Tax Treatment of utilities for the year 2009?
Select correct option:Wholly taxable
Wholly exempted
Exempt up to 10% of MTS
Exempt up to 45% of MTS

Utilities were exempt up to 10% of MTS or Basic salary till 30th June, 2006, vide clause 38 of part 1 of

Second Schedule. This clause has been omitted by Finance Act, 2006. Hence no exemption is available for tax year 2009.

Question # 12 of 15 ( Start time: 06:46:25 PM ) Total Marks: 1
In the normal circumstances on which of the following tax is charged?
Select correct option:
Gross Receipt
Total IncomeTaxable Income
All of the given options



Question # 13 of 15 ( Start time: 06:47:17 PM ) Total Marks: 1
As per clause 13(iii) of the part 1 of second schedule, if gratuity fund is approved by CBR, the amount of fund exempted up to Rs. 200,000 and any amount exceeding it will be taxed in which of the following way?
Select correct option:Salary Income
Income from Business
Capital gain
Other Income



Question # 14 of 15 ( Start time: 06:48:20 PM ) Total Marks: 1
Which of the following is the deductible allowance from the income of an individual?
Select correct option:
Zakat
Worker’s Welfare Fund
Work’s Participation FundAll of the given options

Deductible Allowance:

The person shall be entitled to a deductible allowance for any Zakat paid by the person in a tax year

according to provisions of sec.60, for the amount of any Workers’ Welfare Fund paid by the person in a tax year under Sec 60-A, for the amount of any Workers’ Participation Fund paid by the person in a tax year under section 60-B.

Question # 15 of 15 ( Start time: 06:49:09 PM ) Total Marks: 1
Any gain arising on the disposal of shares in a resident company belongs to which of the following?
Select correct option:
Foreign source of incomePakistan source income
Both Pakistan and foreign source of income
None of the given option


Any gain arising on the disposal of shares in a resident company shall be Pakistan- source income.P29