PERSONAL FINANCIAL INVESTMENT (MCQS - 2018) - Study For Buddies

Monday, April 26, 2021

PERSONAL FINANCIAL INVESTMENT (MCQS - 2018)

T.Y B.COM
SEMESTER - 6


PERSONAL FINANCIAL INVESTMENT
(PFI) 
MCQS - 2018

1. Rebate is available, only in case of a resident individual if his/her taxable income is Rs.5,00,000 or less, under section _________. 

A. 80 G
B. 80 TTA
C. 80 GG
D. 87 A

2. Purchase of home electronic items is a part of __________

A. Real Property
B. Liquid assets 
C. Personal property
D. None of the above

3. The rate of Education Cass for the A.Y. 2017-18 is ________ of income tax and surcharge.

A. 2% 
B. 1% 
C. 3%
D. None of the above 

4. Deduction in respect of medical insurance premia is available u/s ________

A. 80 DD
B. 80 DDG
C. 80 DDB 
D. 80 D

5. Given the following information , Savings ratio will be _________ Cash Surplus Rs. 20,000, income before tax Rs. 1,00,000 Tax paid Rs. 20,000

A. 100% 
B. 50%
C. 25%
D. 75%

6. The amount due for light bill of a house is a part of __________

A. expenses
B. long term liability
C. incomes
D. short term liability

7. The aggregate amount of deduction under section 80C to 80U can not exceed

A. Net total income
B. Tax Liability 
C. Gross total income
D. All of a, b, and c

8. In personal financial management, the income and expense statement is prepared on __________. 

A. profit basis
B. accrual basis
C. cash basis
D. fair value basis

9. Compute the balance of cash available on 31.12.2017

1st Dec., balance of cash Rs. 90,000
5th Dec., Salary received in form of cash Rs. 60,000
6th Dec. light bill paid by cash Rs. 4,000
9th Dec. interest received on investment by cheque Rs. 10,000
11th Dec. medical bills paid by cash RS. 6,000
20th Dec. mobile purchased by using debit car Rs. 9,000

A. Rs. 1,31,000
B. Rs. 1,21,000
C. Rs. 1,40,000
D. Rs. 1,11,000

10. The secondary and higher education Cass is charged on tax liability for the A.Y. 2017-18 at the rate of

A. 2%
B. 3%
C. 1%
D. 4%

11. Which of the following is/are a goal/goals of personal financial Management?

A. Spending money wisely
B. Accumulating wealth
C. Improving Your Standard of Living
D. All of the above

12. _________ ratio indicates the part of the incomes as cash surplus available for making investment.

A. Savings ratio
B. Debt service coverage ratio 
C. Solvency ratio
D. Liquidity ratio

13.  ________is the arrangement of financial activities in such a way that maximum tax benefits are employed, so as to minimize the tax liabilities.

A. Tax Avoidance
B. Tax Evasion
C. Tax Planning
D. None of the above

14. Mr. Ajay age of 62 years has taxable income of Rs. 4,90,000. His tax liability for the A.Y. 2017-18 will be ___________

A. Rs. 24205
B. Rs. 19570
C. Rs. 24720
D. Rs. 14420

15. Which of the following is not true?

A. Net worth can be positive, negative or zero.
B. Total assets - Total liabilities + Net worth
C. Net worth refers to total assets in excess of total liabilities 
D. Net worth refers to excess of current liabilities over total liabilities

16. Match the following:

(a) Savings account

(i) Long term Liability

(b) Agricultural land

(ii) Investment

(c) Mutual fund

(iii) Real property

(d) Home loan

(iv) Liquid assets


A. (a-ii), (b-i), (c-iv), (d-iii) 
B. (a-iv), (b-iii), (c-ii), (d-i) 
C. (a-i), (b-ii), (c-iii), (d-iv) 
D. (a-ii), (b-iii), (c-i), (d-iv) 

17. ______ is a systematic process that considers the important elements of an individuals financial affairs fulfilling his or her financial goals.

A. Corporate planning
B. Cash budget 
C. Personal financial planning
D. Corporate social responsibility

18. Education loan for higher studies is one of the part of ________

A. Expenses
B. Short term liability
C. Incomes
D. Long term liability

19. Residential house property is belonging to _______ category of assets.

A. real property
B. Liquid assets 
C. investment
D. Person property 

20. The deduction under section 80D is available if payment on account of preventive health check up is made by

A. Cash or any other mode
B. Demand draft only
C. Cheque only
D. Cash only

21. Personal property does not include ___________

A. clothing
B. automobiles
C. land and building
D. jewelry

22. Deduction in respect of payment of interest on loan taken for higher education is available under section ________

A. 80C
B. 80E
C. 80DDB
D. 80EE

23. From the following information, calculate the Solvency ratio:
Total Assets- Rs. 10,00,000; Total Liabilities - Rs. 2,00,0000

A. 200%
B. 500%
C. 100%
D. 80%

24. Mr. jawahar (age 52 years) is resident individual, if his taxable income is Rs.9,60,000, the tax liability for the A.Y. 2017-18 will be ___________

A. Rs. 1,02,510
B. Rs. 1,05,210
C. Rs. 1,01,250
D. Rs. 1,20,510 

25.Mr. Panchal a resident individual (with 85%, disability) is aged 45 years. What will be his taxable income for the Assessment year 2017-18?
income from salary Rs. 5,00,000, Income from house property Rs.1,00,000
Contribution towards recognized provident fund Rs. 40,000

A. Rs. 4,35,000 
B. Rs. 3,95,000 
C. Rs. 3,54,000 
D. Rs. 5,34,000

26. Match the following:
  

(i) Liquid Assets

(a) Urban land

(ii) Real property

(b) LED Television

(iii) Personal property

(c) Balance in Saving A/c


A. (i) c, (ii) b, (iii) a
B. (i) a, (ii) b, (iii) c
C. (i) a, (ii) c, (iii) b
D. (i) c, (ii) a, (iii) b

27. Deduction in respect of maintenance including medical treatment of a dependent being a person with disability is available u/s _________

A. 80 D
B. 80 DDG
C. 80 DD
D. 80 DDB

28. Calculate liquid ratio from the following information:
Home loan payment due within a year = Rs. 2,00,000
Car loan payment due within a year = Rs. 1,00,000
Education loan payment due within a year = Rs. 2,00,000
Short term liabilities = Rs. 10,000
Total liquid assets Rs. 11,00,000

A. 2220%
B. 46.36%
C. 45.45%
D. 215.69%

29. Calculate saving ratio from the following information 
Cash surplus = Rs. 6,00,000; income before Tax = Rs. 18,00,000; Tax - Rs. 50,000

A. 30.55%
B. 31.43%
C. 34.29%
D. 33:33% 

30. Match the following :

(i) Sec 80D

(a)  Deduction in respect of medical insurance premia

(ii) Sec. 80DD

(b) Deduction in respect of maintenance including medical treatment of a dependent being a person with disability

(iii) Sec. 80 DDB

(c) Deduction in respect of medical treatment for specified disease


A. (i) - b, (ii) - c, (iii) - a
B. (i) - c, (ii) - b, (iii) - a
C. (i) - c, (ii) - a, (iii) - b
D. (i) - a, (ii) - b, (iii) - c

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