Accounts & Compliance - position Article

What is the primary purpose of bookkeeping in accounting?

• To prepare financial forecasts.
• To record financial transactions systematically.
• To calculate tax liabilities.
• To audit financial statements.

Answer explanation

Jupiter is a gas giant made primarily of hydrogen and helium. Unlike terrestrial planets that have solid surfaces, gas giants like Jupiter don't have a well-defined solid surface, allowing them to accumulate more mass in a gaseous form. This composition has allowed Jupiter to grow significantly larger than planets with solid surfaces.

Which of the following is a liability in a company’s balance sheet?

• Trade Receivables
• Inventory
• Trade Payables
• Cash at Bank

Which financial statement shows the financial position of a business as on a specific date?

• Income Statement
• Cash Flow Statement
• Statement of Changes in Equity
• Balance Sheet

Which form is used for filing GST returns to claim Input Tax Credit (ITC)?

• GSTR-1
• GSTR-2A
• GSTR-3B
• GSTR-9

In the context of TDS, which of the following statements is correct regarding Section 194J?

• TDS under Section 194J is applicable only to professional fees exceeding ₹30,000 in a financial year.
• TDS under Section 194J is applicable for any payment to a contractor or professional, regardless of the amount.
• TDS under Section 194J is applicable only for payments made to residents.
• TDS under Section 194J applies only to payments for technical services.

In a company's balance sheet, which of the following items is classified as a non-current asset?

• Cash and cash equivalents
• Accounts receivable due within 12 months
• Land and building
• Short-term investments

In GST compliance, what is the due date for filing the GSTR-1 return for a taxpayer with an annual turnover of up to ₹5 crores who has opted for the quarterly filing option?

• 10th of the next month
• 13th of the month following the quarter
• 20th of the next month
• 25th of the month following the quarter

Under Section 44AD of the Income Tax Act, 1961, a taxpayer opting for the presumptive taxation scheme is required to declare income of what percentage of total turnover?

• 0.08
• 0.1
• 0.15
• 0.12

In the balance sheet, how is 'Deferred Tax Liability' typically classified?

• Current Liability
• Non-Current Liability
• Shareholders' Equity
• Non-Current Asset

In the case of a company deducting TDS under Section 194C, which of the following conditions will require the company to deduct tax at a higher rate?

• If the payment is made to a foreign contractor.
• If the payment is made to a contractor who has not filed income tax returns for the last two years.
• If the contractor is a non-resident.
• If the contractor's PAN is not available.