FIN623 Quiz 1 Set 2

Q1. If the accounting year of firm manufacturing sugar starts from 1st October 2022 and ends on 30th September 2023. What will be its tax year?

1. Tax year 2023
2. Tax year 2021
3. Tax year 2022
4. Tax year 2024

Correct answer: Tax year 2024

Q2. All of the following statements hold TRUE for tax, EXCEPT:

1. It is a legal obligation of the person
2. It is a compulsory payment
3. Its payment entitle the person to counter benefits
4. It is an important instrument of fiscal policy

Correct answer: Its payment entitle the person to counter benefits

Q3. 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 2023
2. Tax year 2022
3. Tax year 2020
4. Tax year 2021

Correct answer: Tax year 2023

Q4. The Income Tax Ordinance 2001 modified up to June 2025, consists of how many Chapters?

1. Twelve
2. Eleven
3. Fourteen
4. Thirteen

Correct answer: Thirteen

Q5. If the accounting year of the firm exporting rice starts on 1st January 2022 and ends on 31st December 2023. What will be its tax year?

1. Tax year 2022
2. Tax year 2024
3. Tax year 2021
4. Tax year 2023

Correct answer: Tax year 2024

Q6. Which one of the following structure of tax is based on the "benefits" received principle?

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

Correct answer: Proportional

Q7. Which of the following is the legal status of Punjab Cooperative Housing Society under section 80 of Income Tax Ordinance 2001?

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

Correct answer: Company

Q8. All of the following are the main objectives of Fiscal Policy EXCEPT:

1. Economic Development
2. Maintain rate of inflation at low level
3. Price stability
4. Removal of deficit in Balance of Payment

Correct answer: Removal of deficit in Balance of Payment

Q9. 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

Q10. As per section 2(59) of Income Tax Ordinance 2001: “shareholder” in relation to a company, includes a modaraba certificate holder, a unit holder of a unit trust and a beneficiary of a trust. In which criteria the above definition falls?

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

Correct answer: Inclusive definition