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Home Questions 32JRF7N3CJ
Target Exam

CUET

Subject

-- Accountancy Part C

Chapter

Use of Spreadsheet in Business Applications

Question:

Which of the following allowance is a compensation for erosion in the purchasing power of wage earner due to price rise?

Options:

Dearness Allowance

House Rent Allowance

Transport Allowance

Provident Fund

Correct Answer:

Dearness Allowance

Explanation:

The correct answer is option 1- Dearness Allowance.

Dearness Allowance is a compensation for erosion in the purchasing power of wage earner due to price rise.  It is granted by the Government periodically as a percentage of (Basic Pay + Dearness Pay, if applicable).

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