Public Finance

JKSSB Finance Accounts Assistant · Accountancy & Book-Keeping · 21 practice questions with answers and explanations: 6 Easy, 9 Medium, 6 Hard.

Sample questions

Sample Easy question 1

Which of these is an example of an indirect tax in India?

  1. Income Tax
  2. Corporation Tax
  3. GST
  4. Wealth Tax
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Answer: C. GST is levied on goods and services and its burden can be shifted to the consumer, making it an indirect tax.

Sample Medium question 2

Fiscal deficit is the difference between:

  1. Total revenue and tax revenue
  2. Total expenditure and total receipts excluding borrowings
  3. Capital expenditure and revenue expenditure
  4. Imports and exports
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Answer: B. Fiscal deficit = Total expenditure − Total receipts (excluding borrowings), indicating how much the government needs to borrow.

Sample Hard question 3

Zero-based budgeting requires that:

  1. Previous year's budget is simply increased by inflation
  2. Every expenditure item is justified afresh from a 'zero base' each year
  3. The budget must show a zero deficit
  4. Only capital expenditure is budgeted
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Answer: B. In zero-based budgeting, each year's budget starts from zero and every expense must be justified anew, rather than basing it on the previous year's figures.

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