West Bengal SET Solved Question Paper
WB Set Commerce Paper II Solved January 2022 (Subject Code: 06)
1) Current account balance refers to the net flow between home country and foreign country of goods, service, income and
a) taxes.
b) valuables.
c) gifts.
d) claims.
Ans: c) gifts.
2) Which of the following is not a member of SAARC?
a) Afghanistan.
b) Nepal.
c) Maldives.
d) Mauritius.
Ans: d) Mauritius.
3) With regard to WTO, subsidies are covered in two separate economic law agreements. Which are they?
a) The Reform Treaty and the Treaty of Rome.
b) The NAFTA and the Organisation of American States of Charter.
c) The IMF’s Article of Agreement and the European Central Bank’s Statute.
d) The GATT and the Agreement of Subsidies and Countervailing Measures.
Ans: d) The GATT and the Agreement of Subsidies and Countervailing Measures.
4) The Linkage Leverage Learning Hypothesis explains.
a) the gradual internationalisation path taken by incumbent TNCs.
b) the internationalisation strategy of micro TNCs.
c) the emergence of TNCs from the developing countries.
d) the gradual development of market knowledge from the parental network.
Ans: c) the emergence of TNCs from the developing countries.
5) Bank deposits of non-resident Indians come under the
a) Current Account.
b) Capital Account.
c) Errors and omissions.
d) Loans and advances.
Ans: b) Capital Account.
6) The main function of the IMF is to
a) arrange international deposits from banks.
b) help to solve Balance of Payment problems of member countries.
c) act as a private sector lending arm of World Bank.
d) finance investments to developing countries.
Ans: b) help to solve Balance of Payment problems of member countries.
7) Duty drawback is available for
a) import duty or imported components.
b) central excise on indigenous components.
c) import duty and GST on indigenous components.
d) import duty, central excise and VAT.
Ans: c) import duty and GST on indigenous components.
8) The phenomenon of outsourcing has its roots in the economic theory of
a) Product Life Cycle.
b) Linking Leverage Learning.
c) Absolute Advantage.
d) Comparative Advantage.
Ans: d) Comparative Advantage.
9) Laissez faire policy is adopted by
a) Capitalist economy.
b) Mixed economy.
c) Socialist economy.
d) Communist economy.
Ans: a) Capitalist economy.
10) Which of the following is not a non-tariff barrier?
a) Quota.
b) Embargo.
c) Countervailing duty.
d) Licensing.
Ans: c) Countervailing duty.
11) Face value of debentures of subsidiary company held by holding company is deducted from
a) debentures.
b) cost of control.
c) minority interest.
d) debentures in consolidated balance sheet.
Ans: b) cost of control.
12) Operating activities include:
(1) Principal revenue generating activities of an entity.
(2) Other activities that are not investing or financing activities.
a) (1) only.
b) (2) only.
c) (1) and (2).
d) either (1) or (2).
Ans: c) (1) and (2).
13) Goodwill arising on amalgamation is to be
a) amortised on a systematic basis, normally over five years.
b) adjusted against reserves or profit and loss account balance.
c) retained in the books of the transferee company.
d) retained in the books of the transferor company.
Ans: a) amortised on a systematic basis, normally over five years.
14) Debentures are Rs. 2,50,000 and Rs. 3,50,000 in the balance sheets for 2018 and 2019 respectively. 1,000 of the debentures of Rs. 100 each were issued at par in 2019, of which 400 debentures were issued to a supplier for the purchase of a machine. Determine the amount of issue of debentures for the purpose of Fund Flow Statement.
a) Rs. 60,000.
b) Rs. 40,000.
c) Rs. 10,000.
d) Rs. 20,000.
Ans: a) Rs. 60,000.
15) At the time of dissolution of a partnership firm
a) all the assets are transferred to Realisation A/c.
b) only current assets are transferred to Realisation A/c.
c) non-cash assets are transferred to Realisation A/c.
d) only liquid assets are transferred to Realisation A/c.
Ans: c) non-cash assets are transferred to Realisation A/c.
16) A company can improve (lower) its Debt to Total Assets ratio by doing which of the following?
a) Selling common stock.
b) Shifting long-term to short-term debt.
c) Shifting short-term to long-term debt.
d) Borrowing more.
Ans: a) Selling common stock.
17) Different management accounting techniques can be used to account for environmental costs. One of these techniques involves analysing cost under three distinct categories: material, system and delivery & disposal. What is this technique known as?
a) Activity-based costing.
b) Life-cycle costing.
c) Input-output analysis.
d) Flow cost accounting.
Ans: d) Flow cost accounting.
18) Under conditions of unchanged cost structure and selling price over the consecutive two years, the sales and profits of an enterprise were as follows:
|
 |
Sales Rs. |
Profits Rs. |
|
2018 2019 |
1,20,000 1,40,000 |
9,000 13,000 |
The Profit/volume ratio of the enterprise was
a) 25%.
b) 30%.
c) 20%.
d) 15%.
Ans: c) 20%.
19) On dissolution of a partnership firm, the Realisation A/c is debited with
a) all the liabilities of the firm.
b) cash received from the sale of the assets.
c) any assets taken over by one of the partners.
d) all assets to be realised.
Ans: d) all assets to be realised.
20) The rate of discount on issue of shares cannot exceed _______ per cent of the nominal value of the shares.
a) 10.
b) 20.
c) 15.
d) 5
Ans: a) 10.
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21) Giffen goods are those goods
a) for which demand increases as price increases.
b) which have a high income elasticity of demand.
c) which have short supply.
d) which have low cross elasticity of demand.
Ans: a) for which demand increases as price increases.
22) An indifference curve is always
a) concave to the origin.
b) convex to the origin.
c) parallel to the horizontal axis.
d) parallel to the vertical axis.
Ans: b) convex to the origin.
24) If two goods are substitutable the Gross Price elasticity of demand will be
a) zero.
b) negative.
c) positive.
d) infinity.
Ans: c) positive.
25) _______ operates, when percentage change in output is more than the percentage change in inputs.
a) Increasing returns to scale.
b) Constant returns to scale.
c) Â Variable returns to scale.
d) Decreasing returns to scale.
Ans: a) Increasing returns to scale.
27) The shape of the average fixed cost curve is
a) a straight line parallel to the horizontal axis.
b) a straight line parallel to the vertical axis.
c) a rectangular hyperbola.
d) a downward falling straight line.
Ans: c) a rectangular hyperbola.
28) Breakeven point is the point where
a) P < AC.
b) P = AVC.
c) P > AC.
d) P = AC.
Ans: d) P = AC.
29) What does monopolistic competition have in common with monopoly?
a) A large number of firms.
b) Mutual interdependence.
c) A ability to collude with respect to price.
d) A downward sloping demand curve.
Ans: d) A downward sloping demand curve.
30) In the kinked demand curve model of oligopoly, the existence of the kink leads to
a) a continuous marginal revenue curve.
b) a discontinuous marginal revenue curve.
c) two parallel marginal revenue curves.
d) two perpendicular marginal revenue curves.
Ans: b) a discontinuous marginal revenue curve.
31) In capital budgeting the term capital rationing implies that
a) no retained earnings available.
b) limited funds are available for investment.
c) no external funds can be raised.
d) no fresh investment is required in the current year.
Ans: b) limited funds are available for investment.
32) The concept of cost of capital can also be explained in terms of _______ cost. Which one of the following can be used to fill in the blank?
a) opportunity.
b) variable.
c) fixed.
d) sunk.
Ans: a) opportunity.
33) The currency crisis of September 1992 was originated due to breaking down of
a) International Monetary System.
b) European Monetary System.
c) Bretton Woods System.
d) Floating Rate System.
Ans: b) European Monetary System.
34) Match the items of List-I with those of List-II and indicate the correct code:
|
List-I |
List-II |
|
(a) ABC Analysis. (b) Walter Model. (c) Capital Rationing. (d) Net Operating Income Approach. |
(1) Dividend Decision. (2) Capital Budgeting Decision. (3) Capital Structure Decision. (4) Working Capital Management Decision. |
 Code:
a) (a)-(1) (b)-(3) (c)-(2) (d)-(4).
b) (a)-(2) (b)-(1) (c)-(3) (d)-(4).
c) (a)-(4) (b)-(1) (c)-(2) (d)-(3).
d) (a)-(3) (b)-(1) (c)-(2) (d)-(4).
Ans: c) (a)-(4) (b)-(1) (c)-(2) (d)-(3).
35) Profit Before Tax (PBT) of a firm has increased by 40% as a result of 10% increase in sales. Operating leverage of the firm is 2. What will be the financial leverage of the firm?
a) 4.
b) 20.
c) 2.
d) 1.
Ans: c) 2.
36) In the foreign exchange market hedging activity means
a) earning riskless profit.
b) earning risky profit.
c) protection against risk.
d) bearing foreign exchange risk.
Ans: c) protection against risk.
37) If a company sells its account receivable to another party to raise funds, it is known as
a) Securitization.
b) Factoring.
c) Pledging.
d) Hedging.
Ans: b) Factoring.
38) If the expected return on market portfolio is 20%, beta of portfolio is 1.2 and the risk free rate is 10%, the expected return on the above portfolio is equal to
a) 22%.
b) 12%.
c) 20%.
d) 32%.
Ans: a) 22%.
39) Dividends are the _______ of a company distributed amongst members in proportion to their shares. Which one of the following is appropriate to fill in the blank?
a) divisible profits.
b) capital reserve.
c) assets with cash and bank.
d) stock split.
Ans: a) divisible profits.
40) Which one involves increasing the par value and decreasing the number of outstanding shares proportionately?
a) Reverse stock split.
b) Stock split.
c) Bonus issue.
d) ESOP.
Ans: a) Reverse stock split.
41) For open ended classes, the appropriate measure of central tendency is
a) Mode.
b) Arithmetic Mean.
c) Harmonic Mean.
d) Median.
Ans: d) Median.
42) The arithmetic mean of a group of 100 items is found to be 50 and that of another group of 150 items is 100. The arithmetic mean of all items will be
a) 185.
b) 80.
c) 90.
d) 180.
Ans: b) 80.
43) If there is no relation between two variables, the value of the coefficient of correlation will be
a) +1.
b) –1.
c) 0.5.
d) 0.
Ans: d) 0.
44) Report of the World Bank is a source of
a) schedule data.
b) observation data.
c) secondary data.
d) primary data.
Ans: c) secondary data.
45) If the angle between the two regression lines is 900, the coefficient of correlation between two variables will be
a) +1.
b) –1.
c) 0.5.
d) 0.
Ans. d) 0.
46) The parameters of the standard normal distribution are
a) (0, 0).
b) (1, 1).
c) (0, 1).
d) (1, 0).
Ans: c) (0, 1).
47) The most widely accepted sampling is
a) Simple Random Sampling.
b) Purposive Sampling.
c) Quota Sampling.
d) Convenience Sampling.
Ans: a) Simple Random Sampling.
48) For theoretical distribution, mean = variance is in
a) Normal Distribution.
b) Binomial Distribution.
c) Poisson Distribution.
d) Rectangular Distribution.
Ans: c) Poisson Distribution.
49) Chi Square Distribution is used for the test of
a) Goodness of fit.
b) Variance ratio test.
c) Small sample test.
d) Hypothetical value of population parameter.
Ans: a) Goodness of fit.
50) For a contingency table with 4 rows and 3 columns, the degree of freedom will be
a) 12.
b) 6.
c) 20.
d) 10.
Ans: b) 6.
51) Which of the following is not a stage in ‘Maslow’s Hierarchy of Needs’ theory?
a) Psychological.
b) Security.
c) Social.
d) Self actualisation.
Ans: a) Psychological.
52) Which of the following is not a control technique in management?
a) Break-even Analysis.
b) Environmental Analysis.
c) Budgetary Control.
d) Responsibility Accounting.
Ans: b) Environmental Analysis.
53) According to Vroom’s Expectancy Theory, Motivation = Valence x Expectancy x _______.
Which of the following terms would be most appropriate in the blank?
a) Effort.
b) Drive.
c) Instrumentality.
d) Risk.
Ans: c) Instrumentality.
54) According to the Managerial Grid framework conceived by Blake and Mouton, wherein ‘concern for production/task’ is measured on the X-Axis and ‘concern for people’ is measured on the Y-Axis. Which leadership style do the coordinates (1, 9) represent, given that on each axis 1 represents least concern and 9 represents greatest concern?
a) Team.
b) Task.
c) Middle of the road.
d) Country club.
Ans: d) Country club.
55) Match the following:
|
Contributor |
Organisation theory |
|
(a) F.W. Taylor. (b) Max Weber. (c) Chester Bernard. (d) Hugo Munsterberg. |
(1) Application of psychology to industry and management. (2) System approach to Management. (3) Emphasis in rules and regulation. (4) Increased productivity through efficiency in production. |
 a) (a)-(4) (b)-(3) (c)-(2) (d)-(1).
b) (a)-(3) (b)-(4) (c)-(2) (d)-(1).
c) (a)-(4) (b)-(3) (c)-(1) (d)-(2).
d) (a)-(2) (b)-(3) (c)-(4) (d)-(1).
Ans: a) (a)-(4) (b)-(3) (c)-(2) (d)-(1).
56) A systematic comparison between jobs done in order to determine their relative worth is known as
a) Job Analysis.
b) Job Evaluation.
c) Job Enrichment.
d) Job Design.
Ans: b) Job Evaluation.
57) Which of the following is not an operative function of human resource management?
a) Control.
b) Development.
c) Maintenance.
d) Procurement.
Ans: a) Control.
58) ‘One method of resolving conflict is to ensure shared goal attainment between the conflicting parties.’ This method is called
a) Problem solving.
b) Super ordinate path.
c) Smoothing.
d) Compromise.
Ans: b) Super ordinate path.
59) Which one of the following is not among the ‘Big Five’ personality traits?
a) Agreeableness.
b) Neuroticism.
c) Extroversion.
d) Cautious.
Ans: d) Cautious.
60) The practice of inducing employees from competing organisation to join for better pay packages to your own is known as
a) Talk-in interview.
b) Leap frogging.
c) Head hunting.
d) Poaching.
Ans: d) Poaching.
61) Rolling Settlement occurs in case of
a) Equity Shares.
b) Government Securities.
c) De-Mat Securities.
d) Re-Mat Securities.
Ans: c) De-Mat Securities.
62) Credit Rating is mandatory for public or right issue of debt instruments:
a) Irrespective of their maturity period.
b) Having maturity period of more than 12 months.
c) Having maturity period of more than 24 months.
d) Having maturity period of more than 36 months.
Ans: a) Irrespective of their maturity period.
63) For the following statements of Assertion (A) and Reason (R) indicates the correct code:
Assertion (A): Schedule Banks are required to maintain a certain minimum balance in their accounts with RBI.
Reason (R): The Schedule Banks are entitled to borrowing and rediscounting facilities from RBI.
Codes:
a) Both (A) and (R) are true and (R) is the correct explanation of (A).
b) Both (A) and (R) are true but (R) is not the correct explanation of (A).
c) (A) is true but (R) is false.Â
d) (A) is false but (R) is true.
Ans: b) Both (A) and (R) are true but (R) is not the correct explanation of (A).
64) For the following statements of Assertion (A) and Reason (R) select the correct answer using the codes given below:
Assertion (A): Capital to Risk Weighted Assets Ratio (CRAR) was introduced in 1992.
Reason (R): Capital Adequacy Ratio (CAR) is also known as Capital to Risk Weighted Assets Ratio (CRAR).
Codes:
a) Both (A) and (R) are true and (R) is the correct explanation of (A).
b) Both (A) and (R) are true but (R) is not the correct explanation of (A).
c) (A) is true but (R) is false.
d) (A) is false but (R) is true.
Ans: b) Both (A) and (R) are true but (R) is not the correct explanation of (A).
65) Match between List-I and List-II to select the correct combination using the codes given below:
|
List-I |
List-II |
|
(a) Bull. (b) Bear. (c) Lame duck. (d) Stag. |
(1) Agrees to sell on a fixed date but finds it different to meet his commitment. (2) Buys the shares to sell them in future expecting a price rise. (3) Neither buys nor sells but merely applied for (4) Agrees to sell on a fixed date expecting a fall |
Codes:
a) (a)-(2) (b)-(1) (c)-(3) (d)-(4).
b) (a)-(1) (b)-(3) (c)-(2) (d)-(4).
c) (a)-(4) (b)-(1) (c)-(3) (d)-(2).
d) (a)-(2) (b)-(4) (c)-(1) (d)-(3).
Ans: d) (a)-(2) (b)-(4) (c)-(1) (d)-(3).
66) Match between List-I and List-II with regard to the BASEL III’s 3-Pillar Framework and select the correct answer using the codes given below this lists:
|
List-I |
List-II |
|
(a) Pillar-1. (b) Pillar-2. (c) Pillar-3. Â |
(1) Supervisory review process. (2) Market discipline. (3) Minimum regulatory capital requirement based on Risk Weighted Assets (RWA’s) |
Codes:
a) (a)-(1) (b)-(2) (c)-(3).
b) (a)-(1) (b)-(3) (c)-(2).
c) (a)-(3) (b)-(2) (c)-(1).
d) (a)-(3) (b)-(1) (c)-(2).
Ans: d) (a)-(3) (b)-(1) (c)-(2).
67) A ‘Bear’ cannot always keep his commitment because the price does not move the way he wants the shares to move and he is , therefore, said to be struggling like a
a) Lame Bear.
b) Lame Stag.
c) Lame Bull.
d) Lame Duck.
Ans: d) Lame Duck.
68) Match between the List-I and List-II and select the correct match using the codes given below the lists:
|
List-I |
List-II |
|
(a) Reserve Bank of India. (b) Nationalisation of 14 major Commercial Banks. (c) Nationalisation of Six Commercial Banks. (d) Regional Rural Banks. |
(1) 1975. (2) 1935. (3) 1969. (4) 1980. |
Codes:
a) (a)-(2) (b)-(3) (c)-(1) (d)-(4).
b) (a)-(2) (b)-(3) (c)-(4) (d)-(1).
c) (a)-(3) (b)-(1) (c)-(2) (d)-(4).
d) (a)-(1) (b)-(2) (c)-(3) (d)-(4).
Ans: b) (a)-(2) (b)-(3) (c)-(4) (d)-(1).
69) Crawling Peg System means
a) Fixed Exchange Rate System.
b) Floating Exchange Rate System.
c) Hybrid of Fixed and Floating Exchange System.
d) Pound-Sterling System.
Ans: c) Hybrid of Fixed and Floating Exchange System.
70) Match between the items of List-I and items of List-II and select the correct match using the codes given below:
|
List-I |
List-II |
|
(a) Interbank call market. (b) Commercial Bills. (c) Commercial Paper Market. (d) Treasury Bill. |
(1) Money market. (2) Promissory Note. (3) Short-term maturity. (4) Government papers. |
Codes:
a) (a)-(1) (b)-(2) (c)-(3) (d)-(4).
b) (a)-(1) (b)-(3) (c)-(4) (d)-(2).
c) (a)-(3) (b)-(1) (c)-(2) (d)-(4).
d) (a)-(3) (b)-(1) (c)-(4) (d)-(2).
Ans: c) (a)-(3) (b)-(1) (c)-(2) (d)-(4).
71) Market penetration pricing strategy is suitable when
a) lower price encourages actual competition.
b) the demand of product is inelastic.
c) the production and distribution costs fall with increasing production.
d) a high price discourages competitors from entering the market.
Ans: a) lower price encourages actual competition.
72) At which stage of new product development process, the launching of the new product will take place?
a) Business Analysis.
b) Test Marketing.
c) Commercialisation.
d) Marketing Strategy Development.
Ans: c) Commercialisation.
73) Which communication component is not a paid form of communication?
a) Advertising.
b) Sales promotion.
c) Personal selling.
d) Publicity.
Ans: d) Publicity.
74) Which of the following is not a function of distribution?
a) Manufacturing.
b) Warehousing.
c) Inventorying.
d) Transportation.
Ans: a) Manufacturing.
75) Pricing is one of the essential component of
a) Promotion Mix.
b) Marketing Mix.
c) Product Mix.
d) Place Mix.
Ans: b) Marketing Mix.
76) The Branding Strategy which uses a different brand name for each product is known as
a) Family Branding.
b) Multiple Branding.
c) Individual Branding.
d) Brand Extension.
Ans: c) Individual Branding.
77) Statement I: All trademarks are brands.
Statement 2: All brands are not trademarks.
a) Statement 1 is true and Statement 2 is false.
b) Statement 1 is true and Statement 2 is true.
c) Statement 1 is false and Statement 2 is false.
d) Statement 1 is false and Statement 2 is true.
Ans: b) Statement 1 is true and Statement 2 is true.
78) Cognitive dissonance is associated with which stage of consumer buying decision process?
a) Need recognition.
b) Information search.
c) Evaluation of alternative.
d) Post purchase behaviour.
Ans: d) Post purchase behaviour.
79) Marketing Myopia concept was developed by
a) Philip Kotler.
b) Peter Drucker.
c) Theodore Levitt.
d) C.K. Prahlad.
Ans: c) Theodore Levitt.
80) The number of product lines a company carries is called
a) Product variation.
b) Product mix width.
c) Product mix depth.
d) Product mix length.
Ans: b) Product mix width.
81) The copyright will pass on to his personal representative as part of estate if such person dies _______.
a) testamentary disposition (through Will)
b) through assignment.
c) by operation of law.
d) intestate (without making Will)
Ans: a) testamentary disposition (through Will)
82) Contracts made before war with an alien enemy. Which are against public policy, are
a) suspended and are revived after the war is over.
b) dissolved.
c) not affected at all.
d) void ab initio.
Ans: b) dissolved.
83) Quantum Merit means
a) a non gratuitous promise.
b) as implied promise.
c) as much as is earned.
d) as much as is paid.
Ans: c) as much as is earned.
84) The right of subrogation in a contract of guarantee is available to the
a) Creditor.
b) Principle Debtor.
c) Indemnifier.
d) Surety.
Ans: d) Surety.
85) The right of lien exercised by an unpaid seller is to
a) recover price and other charges.
b) claim damages.
c) regain possession.
d) retain possession.
Ans: d) retain possession.
86) If life or liberty of any person is involved, the Public Information Officer is expected to reply
a) within 30 days of receipt.
b) within 45 days of receipt.
c) within 48 hours of receipt.
d) within 35 days of receipt.
Ans: c) within 48 hours of receipt.
87) Which of the following is an offence for dishonour of a cheque?
a) Cheque given by way of donation to charitable trust.
b) Cheque given in gift.
c) Cheque not presented within the validity period.
d) Cheque issued in discharge of legally enforceable financial liability.
Ans: d) Cheque issued in discharge of legally enforceable financial liability.
88) Which of the following is covered under GST?
a) Cooking gas.
b) Liquor.
c) Petrol.
d) Food Bill in an AC restaurant.
Ans: d) Food Bill in an AC restaurant.
89) Which of the following does not raise the presumption of under influence?
a) Parents and Child.
b) Landlord and Tenant.
c) Fiancé and Fiancée.
d) Doctor and Patient.
Ans: b) Landlord and Tenant.
90) What is India’s ranking in FDI Confidence Index 2019?
a) 4th.
b) 17th.
c) 21st.
d) 16th.
Ans: d) 16th.
91) The administration of direct taxes is looked after by the
a) Central Board of Direct Taxes.
b) Ministry of Finance.
c) Ministry of Corporate Affairs.
d) Income Tax Department.
Ans: a) Central Board of Direct Taxes.
92) Which of the following is not tax planning?
a) Payment of Life Insurance Premium to avail deduction u/s 80C.
b) Short-term Capital Gain on Sale of shares not shown in return.
c) Exemption claimed u/s 10(15) in respect of Post Office Savings Deposit.
d) Investment in 100% tax free Govt. Bond.
Ans: b) Short-term Capital Gain on Sale of shares not shown in return.
93) Which of the following is treated as an Agricultural Income as per the Indian Income Tax Act?
a) Income on sale of silk cocoons obtained from assessee’s growing mulberry leaves.
b) Income derived from sampling or seedling grown in a nursery.
c) Income from fisheries.
d) Income from dairy farming.
Ans: b) Income derived from sampling or seedling grown in a nursery.
94) Mr. Singh received net salary of Rs. 1,00,000 after deducting 10% of basic salary as contribution to Recognised Provident Fund (RPF), deduction of tax at source (TDS) of Rs. 9,000 and repayment of loan of Rs. 35,000. His basic salary is
a) Rs. 1,00,000.
b) Rs. 1,50,000.
c) Rs. 1,60,000.
d) Rs. 1,20,000.
Ans: c) Rs. 1,60,000.
95) A College Teacher receives fees from the University of Calcutta (the college is affiliated to Calcutta University) for checking answer sheets of examination. Such receipts shall be taxable under the head of –
a) Income from Salary.
b) Income from other sources.
c) Income from Profession.
d) Exempted Income.
Ans: b) Income from other sources.
96) National Income is charged on –
a) Income from Salary.
b) Income from other sources.
c) Income from House Property.
d) Capital Gain.
Ans: c) Income from House Property.
97) Which of the following is not an investment based deduction under chapter VIA of Income Tax Act?
a) 80C.
b) 80D.
c) 80G.
d) 80U.
Ans: d) 80U.
98) Expenditure by employer on promotion of family planning among employees is allowable expenses u/s 36(1)(ix) under the head of ‘Profits & Gains from Business and Profession’ for the following assessee:
a) Individual only.
b) Company only.
c) Partnership firm only.
d) Individual and Company only.
Ans: b) Company only.
99) Which of the following expenditure is not allowed under the head ‘Profits & Gains from Business and Profession’?
a) Litigation expenses in protecting the trade or business.
b) Diwali expenses incurred for maintaining good relations with the employees.
c) Commission paid to selling agent.
d) Expenses on account of Corporate Social Responsibility.
Ans: d) Expenses on account of Corporate Social Responsibility.
100) Unabsorbed depreciation can be carried forward for
a) 8 years.
b) 4 years.
c) 10 years.
d) Indefinite Period.
Ans: d) Indefinite Period.
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