The 'Anti-Profiteering' under GST ensures that: MCQ with Answer and Explanation

The 'Anti-Profiteering' under GST ensures that:

A. Reduction in tax rates or benefit of ITC is passed on to consumers by reducing prices

B. Companies make no profit

C. Suppliers increase prices

D. No price change

Answer: Option A

Anti-profiteering provisions prevent unjust enrichment by suppliers.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1 Report Error

The Trading Account shows a gross profit of Rs 50,000. Indirect expenses are Rs 20,000 and indirect income is Rs 5,000. What is the Net Profit?

A. Rs 25,000

B. Rs 30,000

C. Rs 75,000

D. Rs 35,000

Correct Answer: Option D

Explanation:
Net Profit = Gross Profit (50,000) + Indirect Income (5,000) - Indirect Expenses (20,000) = Rs 35,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The 'Related Party Disclosures' (Ind AS 24) requires disclosure of:

A. Only sales transactions

B. Only borrowing

C. Only parent-subsidiary

D. Key management compensation, related party relationships, and transactions

Correct Answer: Option D

Explanation:
Ind AS 24 requires comprehensive disclosures.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

In the financial statements of a sole trader, drawings are deducted from:

A. Capital

B. Gross profit

C. Net profit

D. Sales

Correct Answer: Option A

Explanation:
Drawings are not an expense; they reduce the owner's capital directly in the balance sheet.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping