Question 1

What is the standard Value Added Tax (VAT) rate applied in Nepal?

Accepted Answer

13% \u2014 Nepal has long applied a standard VAT rate of 13% on most goods and services, with certain exemptions and zero-rated categories.

Question 2

Nepalu2019s government fiscal year runs from:

Accepted Answer

Shrawan 1 to Ashadh end (mid-July to mid-July) \u2014 Nepalu2019s official fiscal year begins on Shrawan 1 and ends on the last day of Ashadh, roughly corresponding to mid-July through mid-July.

Question 3

The constitutional body responsible for auditing the accounts of all government offices and public bodies in Nepal is the:

Accepted Answer

Office of the Auditor General \u2014 The Office of the Auditor General is the constitutional authority mandated to audit government revenue and expenditure accounts.

Question 4

Under accrual-based accounting, revenue and expenses are recorded when:

Accepted Answer

They are earned or incurred, regardless of when cash changes hands \u2014 Accrual accounting recognizes transactions when they economically occur, not necessarily when cash is exchanged, unlike cash-basis accounting.

Question 5

A u2018trial balanceu2019 is prepared in bookkeeping mainly to:

Accepted Answer

Check the arithmetical accuracy of ledger postings by comparing total debits and credits \u2014 A trial balance lists all ledger account balances to verify that total debits equal total credits, helping detect posting errors before final accounts are prepared.

Question 6

Income tax, which is paid directly by the individual or entity on whom it is levied and cannot be shifted to another party, is an example of:

Accepted Answer

A direct tax \u2014 Direct taxes, such as income tax, are borne directly by the taxpayer, unlike indirect taxes such as VAT or customs duty, which can be passed on to others.

Question 7

Which constitutional body in Nepal recommends the basis and formula for the distribution of revenue among the federal, provincial, and local governments?

Accepted Answer

National Natural Resources and Fiscal Commission \u2014 The National Natural Resources and Fiscal Commission is the constitutional body tasked with recommending equitable revenue-sharing arrangements among the three tiers of government.

Question 8

Depreciation, as recorded in government and corporate accounts, primarily reflects:

Accepted Answer

The systematic allocation of a fixed assetu2019s cost over its useful life \u2014 Depreciation spreads the cost of a tangible fixed asset over the periods it is used, reflecting wear, obsolescence, or usage rather than market value change.

Question 9

A customs duty is a tax levied specifically on:

Accepted Answer

Goods crossing a countryu2019s border, such as imports or exports \u2014 Customs duty is an indirect tax imposed on goods as they are imported into, or in some cases exported from, a country.

Question 10

u2018Line-item budgetingu2019, a traditional government budgeting method, organizes proposed expenditure primarily by:

Accepted Answer

Object or category of spending, such as salaries, supplies, and travel \u2014 Line-item budgeting lists expenditures by input category (e.g., salaries, supplies) rather than by the programs or outcomes they fund, unlike performance or program budgeting.

Rajaswa Sewa/Lekha Sewa MCQ Questions with Answers – Practice Set 4

Rajaswa Sewa/Lekha Sewa MCQ Questions with Answers – Practice Set 4

More Rajaswa Sewa / Lekha Sewa (Revenue & Account Group) Practice Sets

Rajaswa Sewa/Lekha Sewa MCQ Questions with Answers – Practice Set 4