A 'High Current Ratio' indicates: MCQ with Answer and Explanation
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Question #1
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Residential status under the Income Tax Act depends primarily on:
Correct Answer: Option D
Explanation:
An individual's residential status for tax purposes is determined by their period of stay in India during the relevant financial year, irrespective of citizenship.
An individual's residential status for tax purposes is determined by their period of stay in India during the relevant financial year, irrespective of citizenship.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A business buying machinery pays 18% GST. Can it claim Input Tax Credit (ITC) on this GST?
Correct Answer: Option B
Explanation:
ITC can be claimed on capital goods (like machinery) used for business purposes, subject to certain conditions in the GST Act.
ITC can be claimed on capital goods (like machinery) used for business purposes, subject to certain conditions in the GST Act.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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A: Standard costing is used for cost control. R: It involves setting predetermined costs and analyzing variances. Choose the correct option.
Correct Answer: Option D
Explanation:
Standard costing is a management tool for cost control. It achieves this by establishing standard (predetermined) costs and comparing them with actual costs to identify and analyze variances for corrective action. R correctly explains A.
Standard costing is a management tool for cost control. It achieves this by establishing standard (predetermined) costs and comparing them with actual costs to identify and analyze variances for corrective action. R correctly explains A.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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