FIN623 Quiz 1

Q1. What will be the tax year for the accounting period 1st March 2025 to 28th February 2026?

1. 2023
2. 2026
3. 2025
4. 2024

Correct answer: 2026

Q2. Which of the following is the legal status of ABC Modaraba under section 80 of Income Tax Ordinance 2001?

1. Firm
2. Hindu Undivided Family
3. Individual
4. Company

Correct answer: Company

Q3. Which one of the following structure of tax is based on the "benefits" received principle?

1. Progressive
2. None of the given options
3. Proportional
4. Regressive

Correct answer: None of the given options

Q4. The Fiscal year is a period of ______ months arbitrarily chosen for tax purposes.

1. 6
2. 18
3. 3
4. 12

Correct answer: 12

Q5. Which of the following is the legal status of XYZ, Chartered Accountancy firm under section 80 of Income Tax Ordinance 2001?

1. An Association of Persons (AOP)
2. A Trust
3. An Individual
4. A Company

Correct answer: An Association of Persons (AOP)

Q6. As per sec. 80(2)(a) of the ITO 2001, all of the following entities are considered Association of Persons (AOP), EXCEPT:

1. A firm
2. A Hindu undivided family
3. A body of persons formed under foreign law
4. A company

Correct answer: A company

Q7. If the accounting year of firm manufacturing shawls starts from 1st April 2022 and ends on 31st March 2023. What will be its tax year?

1. Tax year 2022
2. Tax year 2021
3. Tax year 2023
4. Tax year 2020

Correct answer: Tax year 2022

Q8. In which one of the following type of taxes, the incidence of tax can be shifted by the person on whom levied to other persons?

1. Regressive
2. Direct
3. Indirect
4. Proportional

Correct answer: Indirect

Q9. Which one of the following structure of tax is based on the “capacity to pay” principle of taxation?

1. Proportional
2. Regressive
3. None of the given options
4. Progressive

Correct answer: Progressive

Q10. A definition that excludes the dictionary meanings of the word is termed as:

1. Both Inclusive & Exclusive definitions
2. Statutory definition
3. Exclusive definition
4. Inclusive definition

Correct answer: Exclusive definition