Riaz Academy

Q. Explain the Process of Communication. OR Q. “Communication  is  a  two  way  process  of  exchanging ideas or information between two human beings”. Explain this statement with the help of a diagram. Answer:    Definition:   Communication simply means exchange of ideas & information between two persons. A person sends a message to another person and gets the response from the receiver on the …

Q. Discuss five elements (Factors) of the process of communication. Answer:      Communication is the exchange of ideas between two minds. This process of exchanging idea is based on following five factors. 1. Sender:-  Sender is the individual who starts the procedure of correspondence. He creates a thought in his brain with respect to generation development, advancement, demand, request, enquiry and so …

As a Muslim, it is our faith that the Holy Quran is a comprehensive code of life and is a complete Source of Guidance to us in conduct of all our worldly affairs. The Holy Quran lays great stress on “KITABAT” (recording in Black and White), particularly writing down of financial and business transactions. The contents of Verses 282 and …

Firstly, Question is that Who are Stakeholders? Simply, we can say that Stakeholders are the parties whose Stake means Interest is linked with the organisation whether directly or indirectly. Now, we will discuss some possible Internal or External stakeholders of accounting information, whose benefit is associated with the organisation. Followings you will find a list of parties whose stake directly …

Q: Define “Federal Board of Revenue”; explain its powers and functions in detail. Federal Board of Revenue (FBR) Introduction The old name of federal board of revenue (FBR) is central board of revenue (CBR). Income tax ordinance, 2001 uses the word ‘Board’ for FBR and CBR. Board is the highest tax authority in Pakistan. It has the powers to exercise …

Question: Discuss the composition of “APPELLATE TRIBUNAL INLAND REVENUE”, what are the functions performed by it? Answer: APPELLATE TRIBUNAL INLAND REVENUE: APPELLATE TRIBUNAL INLAND REVENUE is the second court of appeal. The Federal Government is the appointing authority of the APPELLATE TRIBUNAL. The taxpayer or the Commissioner Inland Revenue, if not satisfied with the decision of the Commissioner Inland Revenue (Appeals) can …

Question: Define set off of losses. How different losses can be set off under the provisions of income tax ordinance 2001? Answer:  Head/Sources of income: According to income tax ordinance 2001, there five heads of income i.e. income from salary, income from property, income from business, Capital gain, income from other source. A person may drive income from all these …

Question: Explain procedure of carry forward of losses under the provision of income tax ordinance 2001? How different losses can carry forward? Carry Forward of Losses: Sometime a taxpayer sustains a loss and fails to set off the whole amount of loss against the income of the same year. It may be due insufficiency of income under the same source …

Define “Commissioner Inland Revenue”; explain its powers and functions in detail. Commissioner Inland Revenue A person appointed officially for a particular zone to supervise the collection of taxes, including income tax, capital gains tax and corporation tax. Commissioner Inland Revenue has a very important place in income tax department. He has both executive and judicial powers. He oversees the performance and functions of all the income tax authorities working …

Question: Define income from business?  What expenses are not admissible for tax purpose under the head business OR explain un-admissible deductions under the head income from business? Answer:  Income from business-section-18 Income from business is a 3rd source of income from which a person can derive income. Income from business is chargeable to tax under section-18 of income tax ordinance 2001.Let us define business …

Accounting is the Key subject in business Management Studies and Commerce. The role and significance of accounting can’t be ignored. A good businessman must be aware the key terms of accounting in this era of business. Students can enhance their Accounting skills with the help of following Multiple Choice Questions (MCQs) and Answers. Note: Click Here to Test Your Knowledge I.COM …

Question: Define and differentiate between capital and revenue expenditure according to business taxation point of view.          ‘OR’ Why and how we differentiate between capital and revenue expenditure for tax point of view. CAPITAL AND REVENUE EXPENDITURES: Capital and revenue expenditures have different accounting treatment in the books of account. Financial statements cannot present fair view unless capital …

Accounting is the core subject in the field of business and commerce. You can check your knowledge with the help of following Multiple Choice Questions (MCQs) with Answers. Specially for Newbies –  For Students of I.COM Part -1.  Chapter NO. 1 – Introduction to Accounting  FOR ANSWERS CLICK BELOW Answers  1.The Pioneer of Accounting is:             (a) Arthur Field House (b …

Question: Define Capital and Revenue Receipt. How we can differentiate between capital and revenue receipts? Answer:  CAPITAL RECEIPT An inflow of money from the sale of fixed asset or on account of capital by owner or long-term loan from the bank etc. is called capital receipt. REVENUE RECEIPT An inflow of money from the sale of goods or services in …

Question: EXPLAINS DEPRECIATION WHAT ARE THE CONDITIONS RULES WHICH ARE LAID DOWN UNDER THE ORDINANCE FOR DEPRECIATION ALLOWANCE? Answer : DEPRECIATION A gradual decrease in value of asset due to use or wear and dear is known as depreciation. Generally the term depreciation also includes amortization and depletion. Depreciation of fixed tangible asset such as building, plant and machinery. Amortization of …