Tag: social science

Questions Related to social science

Non-tax revenue can be in the form of ______.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. currency

  2. dividend

  3. interest receipts

  4. all the above

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Correct Option: D
Explanation:

Non-tax revenue can be in the form of currency, dividend which is the amount paid to shareholders from profits and also in the form of interest receipts.

Money obtained through the issues of debenture is ______.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. revenue receipt

  2. capital receipt

  3. revenue profit

  4. capital profit

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Correct Option: B
Explanation:

Money obtained through the issues of debenture is capital receipt. It is the amount received from the sale of assets, shares and debentures. Nature of the capital receipt is that it is non-recurring. This should result either in the reduction in government assets (sale of share, disinvestment) or increase in some liability (government borrowings).

Receipt on account of fixed asset is ______.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. revenue receipt

  2. capital receipt

  3. revenue profit

  4. capital profit

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Correct Option: B
Explanation:

Receipt on account of the sale of fixed asset is called capital receipt unlike revenue receipt which is the amount realised by sale of goods and services.

Amount received from IDBI as a medium-term loan for augmenting working capital is _____.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. capital expenditure

  2. revenue expenditure

  3. capital receipts

  4. none of the above

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Correct Option: C
Explanation:

Amount received from IDBI as a medium-term loan for augmenting working capital is a capital receipt. Cash from the sale of fixed asset; cash from the sale of shares in the business; cash from the issuance of a debt instrument which includes loans and bonds are also included in capital receipts.

Capital receipt is shown in the balanced sheet on _______.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. asset side

  2. debit side

  3. liability side

  4. none of the above

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Correct Option: C
Explanation:

A balance sheet is a statement of the assets, liabilities, and capital of a business or other organization at a particular time, which details the balance of income and expenditure over the preceding period. On a balance sheet capital receipt is shown on the liability side. 

Insurance claim received on account of machinery damaged completely by fire is called _________.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. Capital receipt

  2. Revenue receipt

  3. Capital expenditures

  4. Revenue expenditures

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Correct Option: A
Explanation:

Insurance claim received on account of machinery damaged completely by fire is called capital receipt. As this is a receipt that deals with fixed assets, it falls under capital receipt.

Money spent by a student on buying an application form adds to ______.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. tax revenue

  2. non-tax revenue

  3. profit

  4. none of the above

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Correct Option: B
Explanation:

Money spent by a student on buying an application form adds to non-tax revenue. Non Tax Revenue Receipts are those revenue receipts which are not generated by taxing the public.

Capital receipts are credited to _______.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. respective account of capital nature

  2. trading and profit and loss account

  3. both a and b

  4. none of the above

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Correct Option: A
Explanation:

Capital receipt includes cash from the sale of fixed assets (either tangible or intangible), cash from the sale of shares in the business, cash from the issuance of a debt instrument. The receipts are directly credited to the respective account which is capital in nature.

According to 2009-10 data, the percentage contribution of non-tax revenue to the total revenue of the central and GDP was ______.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. 22% and 3% respectively

  2. 22% and 2% respectively

  3. 2% and 22% respectively

  4. 3% and 22% respectively

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Correct Option: B
Explanation:

According to 2009-10 data, the percentage contribution of non-tax revenue to the total revenue of the central is 22%. Contribution of non-tax revenue to the total GDP is 3%. 

In the statement of financial position we record.

1. Capital receipts

2. Revenue expenditure

3. Deferred revenue expenditure

Which of the above statement is true?

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. Only 1

  2. 1 and 2

  3. 1 and 3

  4. All the above

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Correct Option: C
Explanation:

Capital receipts and deferred revenue expenditure are recorded in the statement of financial position.