T.Y. B.COM
SEMESTER - 6
PERSONAL FINANCIAL PLANNING
(PFP)
MCQS - 2017
1. To prepare Personal Financial Statement, all the assets are recorded in the balance sheet at their _________.
(A) Original Purchase price
(B) Historical Cost
(C) Fair market value
(D) None of the above
2. In respect of deduction under section 80 D which one of the following is not correct
(A) Payment should be made by any mode other than cash. However, payment on account of preventive health check-up can be made by any mode including cash.
(B) Family includes individual, spouse of the individual and dependent children of the individual.
(C) Parent include father, mother, father in law and mother in law.
(D) Payment should be made out of income chargeable for tax.
3. ________ refers to the percentage of each rupee of income, on average, that is spent for current needs rather than savings.
(A) Net worth
(B) Wealth
(C) Average propensity to consume
(D) Investment
4. Deduction in respect of payment of interest on loan taken for higher education is available under section __________.
(A) 80 E
(B) 80 EE
(C) 87 A
(D) 80 DDB
5. Personal property includes:
(A) Household Furnishings
(B) Automobiles
(C) Clothing
(D) All of the above
6. Find out the amount of deduction under section 80 DDB from the following information for a resident individual having dependent mother (Age 89 years) who is also resident. Expenditure of Rs. 90,000/- incurred on medical treatment of dependent mother in a hospital recognized by chief commissioner. Amount received from insurance company Rs. 4000 and Amount received from employer is Rs. 2000.
(A) Rs.74,000
(B) Rs.80,000
(C) Rs.84,000
(D) Rs.86,000
7. Mr. Amitabh (age 42 years) is a resident individual. if his net income is Rs.5,00,000, the tax liability for the assessment year 2016-17 will be ___________.
(A) Rs.25,000
(B) Rs.23,000
(C) Rs.23,690
(D) Rs.25,750
8. Deduction under section 80 CCC is available to:
(A) Individual and HUF
(B) Only an Individual
(D) Only HUF
(C) Only Company
9. From the following information, calculate Liquidity ratio:
|
Cash on hand |
Rs.4,00.000 |
|
Balance with savings A/c |
Rs.6,00,000 |
|
Total Current Debts |
Rs.10,00,000 |
(A) 300%
(B) 60%
(C) 40%
(D) 100%
10. Match the following:
|
X. Long term goals |
(i) Wants and desires for a period covering about 6-years out to the
next 30 or 40 years. |
|
Y. Short term goals |
(ii) Set each year and cover a 12-months period. |
|
Z. Goals dates |
(iii) Target points in the future when you expect to achieve or
complete certain financial objectives. |
(A) X-iii, Y-ii, Z-i
(B) X-ii, Y-iii, Z-i
(C) X-i, Y-ii, Z-iii
(D) X-iii, Y-i, Z-ii
11. Personal Financial Planning includes:
(A) Retirement Planning
(B) Tax Planning
(C) Estate Planning
(D) All of the above
12. Mr. K a resident of Surat suffers from 60% disability. Under which section of the Income Tax Act can he avail deduction in respect of his disability?
(A) 80U
(B) 80DDB
(C) 8OTTA
(D) 80 DD
13. In Personal financial management, the Income and Expense Statement is prepared on:
(A) Profit basis
(B) Cash Basis
(C) Accrual basis
(D) None of these
14. Calculate Savings Ratio from the following information:
Cash Surplus - Rs.12,000, Income Before Tax - Rs. 80,000, Tax Paid - Rs.15,000
(A) 12.63%
(B) 15%
(C) 18.46%
(D) 33.75%
15. From the following information, calculate Debt Service Ratio :
|
Total yearly loan payments |
Rs. 2,40,000 |
|
Gross income before tax for the year |
Rs.6,00,000 |
(A) 20%
(B) 30%
(C) 40%
(D) 50%
16. When total assets of Mr. Shyam are Rs. 39,00,000 and total liabilities are Rs.19,50,000 what would be his solvency ratio?
(A) 50%
(B) 200%
(C) 100%
(D) 25%
17. Outstanding Electricity Bill is:
(A) Long Term Liability
(B) Short Term Liability
(C) Income
(D) None of the above
18. Mr Jaimin (Age 45 years) is a resident salaried employee makes the following investments or payments during the year 2015-16:
i) Life insurance premium (taken in 2009), on life of his married daughter: Rs. 6,000 (sum assured: Rs. 20,000)
ii) Life insurance premium (Taken in 2011 on life of his dependent sister: Rs. 10,000 (sum assured: Rs.50,000)
iii) Contribution to recognized provident fund: Rs.9.000
iv) Contribution towards public provident fund : Rs.1,30,000
Determine the deduction available to Mr. Jaimin under section 80 C for the assessment year 2016-17.
(A) Rs.1,43,000
(B) Rs.1,55,000
(C) Rs.1,53,000
(D) Rs.1,45,000
19. Match the following:
|
i. Savings account |
a. Long-term liability |
|
ii. Agricultural land |
b. Investment |
|
iii. Mutual funds |
c. Real property |
|
iv. Home loan |
d. Liquid assets |
(A) i - a, ii - b, iii - c, iv - d
(B) i - b, ii - c, iii - a, iv - d
(C) i - d, ii - c, iii - b, iv - a
(D) i - d, ii - a, iii - b, iv - c
20. Deduction in respect of rent paid is available under section:
(A) 80G
(B) 80GG
(C) 80GGB
(D) 80EE
21. ________ Under section 80D, the aggregate payment on account of preventive health checkup of self, Spouse, dependent children, father & mother cannot exceed:
(A) Rs.2,000
(B) Rs.5,000
(C) Rs.25,000
(D) Rs.10,000
22. Personal financial planning life cycle relates to:
(A) Early childhood only
(B) High school, College and Carcer development only
(C) Pre-Retirement and Post Retirement only
(D) All of the above
23. Liquid Asset refers to
(A) An Asset that can readily be convertcd in to Cash
(B) An Asset having maturity period of less than a year
(C) Neither (A) nor (B)
(D) Both (A) & (B)
24. ________ and _______ are essential to developing and monitoring personal financial plans.
(A) Directors report and audit Report
(B) Annual Report and balance Sheet
(C) Income & Expense statement and Balance sheet
(D) Funds Flow statement and Cash Flow statement
25. Maximum amount of deduction available under section 80 TTA is:
(A) Rs.30,000
(B) Rs.25,000
(C) Rs.5,000
(D) Rs.10,000
26. Personal Financial Planning is a:
(A) Dynamic Process
(B) Static Process
(C) Static and Dynamic Process
(D) None of the above
27. Deduction under section 80G is available to:
(A) Company
(B) Resident or Non-Resident individual
(C) Fim
(D) All of the above
28. The amount of additional deduction under section 80CCD (1B) from the assessment year 2016-17 for contribution under National Pension system is available up to __________
(A) Rs.1,00,000
(B) Rs.50,000
(C) Rs.1,25,000
(D) Rs.75,000
29. Which of the following is true for provisions under section 80DD?
(A) A fixed deduction of Rs. 75,000 is available.
(B) Deduction under this section is available regardless of actual expenditure.
(C) For claiming deduction, the assess should have a certificate issued by the medical authority.
(D) All of the above
30, Mr. Samir (age 63 years) is a resident individual. If his net income is Rs.4,26,000, the tax Liability for the assessment year 2016-17 will be ________.
(A) Rs.12,978
(B) Rs.12,600
(C) Rs.10,918
(D) Rs.18,128
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