Description : When there is a difference between all receipts and expenditure of the Govt. of India, both capital and revenue it is called _______ A. Income Deficit B. Fiscal Deficit C. Budgetary Deficit D. None of the Above
Last Answer : C. Budgetary Deficit Explanation: A budget deficit occurs whenever a government spends more than it makes, which is nearly every year.Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.
Description : When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called __________ A. Revenue Deficit B. Budgetary Deficit C. Zero Budgeting D. Trade Gap E. Balance of Payment Problem
Last Answer : B. Budgetary Deficit Explanation: Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.If revenue expenses of the government ... leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.
Description : The concept which tries to ascertain the actual deficit in the revenue account after adjusting for expenditure of capital nature is termed as?
Last Answer : Effective revenue deficit
Description : Deficit financing implies : A. printing new currency notes B. public revenue in excess of public expenditure C. public expenditure in excess of public revenue D. replacing new currency with worn out currency
Last Answer : C. public expenditure in excess of public revenue
Description : Inherent risk is defined as the susceptibility of an account balance or class of transactions to error that could be material assuming that there were no related internal controls. Of the following ... . d. The client has lost a major customer accounting for approximately 30% of annual revenue.
Last Answer : Internal control over shipping, billing, and recording of sales revenue is weak.
Description : Which of these is one of the causes of inflation? (a) Increase in public expenditure ; (b) Deficit financing ; (c) Increase in administrative prices (d) All the three
Last Answer : (d) All the three
Description : Revenue expenditure is ____________ in nature. (a) capital (b) outstanding (c) recurring (d) contingent
Last Answer : Revenue expenditure is ____________ in nature. (a) capital (b) outstanding (c) recurring (d) contingent
Description : What is the renewal fees paid for a patent right ? (A) Capital expenditure (B) Revenue expenditure (C) Deferred revenue expenditure (D) Development expenditure
Last Answer : Answer: Revenue expenditure
Description : A large amount spent on special advertisement is– (A) Capital Expenditure (B) Revenue Expenditure (C) Revenue Loss (D) Deferred Revenue Expenditure
Last Answer : Answer: Deferred Revenue Expenditure
Description : The difference between the GNP and the NNP is equal to the - (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation
Last Answer : (4) capital depreciation Explanation: Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and the allocation of the cost of ... equal to capital depreciation. It is the wearing out, breaking down, or technological obsolescence.
Description : The sale proceeds of Government Bonds come under the budget head of - (1) Revenue Receipts (2) Current Expenditure (3) Capital Outlay (4) Capital Receipts
Last Answer : (4) Capital Receipts Explanation: Capital receipts are the funds received into the businesses that are not part of the operating activities of the establishment. Capital receipts primarily include external ... furniture, investment (long term) etc., which shall not be occurring all the time.
Description : Total expenditure of the government (revenue and capital) minus revenue receipts minus loans and other capital receipts is called?
Last Answer : Fiscal Deficit
Description : Amount spent to increasing the earning capacity is a ______ expenditure a) Capital b) Revenue c) Deferred revenue d) Capital Loss
Last Answer : a) Capital
Description : Deewali advance given to an employee is a) Revenue Expenditure b) Capital Expenditure c) Deferred Revenue Expenditure d) Not an Expenditure
Last Answer : d) Not an Expenditure
Description : Amount spent on an advertisement campaign, the benefit of which is likely to last for three years is a A. Capital expenditure B. Revenue expenditure C. Deferred revenue expenditure D. None of the above
Last Answer : C. Deferred revenue expenditure
Description : In the Union Budget, profits from public sector undertakings are taken under (a) Revenue receipts ; (b) Capital receipts (c) Monetized receipts ; (d) Planned expenditure
Last Answer : (a) Revenue receipts
Description : The sale proceeds of Government Bonds come under the budget head of (1) Revenue Receipts (2) Current Expenditure (3) Capital Outlay (4) Capital Receipts
Last Answer : Capital Receipts
Description : The difference between the GNP and the NNP is equal to the (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation
Last Answer : capital depreciation
Description : In general, deficit financing can create inflation, but it can be checked if. A) Government expenditure increases the aggregate supply in the aggregate demand ratio B) All the investment is indicated as payment on national debt only C) Only aggregate demand is increased D) All of the above
Last Answer : Answer: D
Description : A product is a price leader when: A)it is sold at the highest possible price. B)an increase in price leads to increased revenue C)it sometimes is sold at less than cost in the hope that sales of other products will increase. D)its price leads the industry and competitors follow with similar prices.
Last Answer : C)it sometimes is sold at less than cost in the hope that sales of other products will increase. D)its price leads the industry and competitors follow with similar prices.
Description : Whenever the government spends more than it collects through revenue, the resulting imbalance is known as : a) Public deficit b) Market deficit c) Government deficit d) Budget deficit
Last Answer : d) Budget deficit
Description : Deficit financing leads to (a) Price rise (b) Price fall (c) Price control (d) None of the above
Last Answer : a) Price rise
Description : If an industry is characterized by economies of scale then - (1) barriers to entry are not very large (2) long run unit costs of production decreases as the quantity the firm produces increases (3) ... of the large scale operation (4) the costs of entry into the market are likely to be substantial
Last Answer : (2) long run unit costs of production decreases as the quantity the firm produces increases Explanation: In microeconomics, economies of scale are the cost advantages that an enterprise obtains due to expansion ... in unit cost as the size of a facility and the usage levels of other inputs increase.
Description : If an industry is characterised by economies of scale then (1) barriers to entry are not very large (2) long run unit costs of production decreases as the quantity the firm produces increases (3) ... of the large scale operation (4) the costs of entry into the market are likely to be substantial
Last Answer : long run unit costs of production decreases as the quantity the firm produces increases
Description : (i) Heavy expenditure on advertising is deferred revenue expenditure.
Last Answer : Do you agree or disagree with the following statement : (i) Heavy expenditure on advertising is deferred ... has two effects i.e. debit and credit.
Description : Fiscal policy is concerned with which of the following? A. Public revenue and Expenditure B. Issue of Currency C. Export Import D. Population Control E. Education for all
Last Answer : A. Public revenue and Expenditure Explanation: Fiscal policy is the policy relating to government revenues from taxes and expenditure on various projects. Monetary Policy, on the other hand, is mainly concerned with the flow of money in the economy.
Description : Laffer curve is related to (a) Tax rate and tax revenue. (b) Aggregate tax and aggregate non-tax revenue. (c) Total tax burden and total payment burden. (d) Total income and total expenditure.
Last Answer : (c) Total tax burden and total payment burden.
Description : A _________ occurs when a government's total expenditure exceed the revenue that it generates, excluding money from borrowings.
Last Answer : Fiscal deficit
Description : A situation where the expenditure of the government exceeds its revenue is called
Last Answer : Budget deficit
Description : As per accrual concept, which of the followings is not true a) revenue –expenditure = profit b) revenue –profit = expenditure c) sales + gross profit = revenue d) revenue = profit + expenditure
Last Answer : c) sales + gross profit = revenue
Description : Which of the following cannot be treated as revenue expenditure? A. Cost of goods purchased for resale. B. Wages paid for the erection of plant and machinery. C. Obsolescence cost. D. Expenses incurred by way of repairs of existing assets which do not in any way add to their earning capacity.
Last Answer : B. Wages paid for the erection of plant and machinery.
Description : Which of the following is not deferred revenue expenditure? A. Heavy advertisement expenditure. B. Expenses incurred in removing the business to more convenient premises. C. Preliminary expenses. D. Depreciation on fixed assets.
Last Answer : D. Depreciation on fixed assets.
Description : While Computing the actual cost of any asset falling within a block, direct cost attributable to bring the asset to its present location and working condition for its intended use(i.e. expenses incurred ... from the purchase price c) Be subtracted from WDV d) Be claimed as revenue expenditure
Last Answer : b) Be subtracted from the purchase price
Description : While computing the actual cost of any asset falling within a block, portion of cost of asset which has been met directly by the central government or a state government or any authority under any law ... price b) Subtracted from purchase price c) Added to WDV d) Claimed as Revenue Expenditure
Last Answer : b) Subtracted from purchase price
Description : Ceteris paribus, an income tax (a) Increases the value of the expenditure multiplier and decreases the value of the net tax revenue multiplier; (b) Decreases the value of the expenditure and net tax ... multiplier and increases the value of the net tax revenue multiplier ; (d) None of the above.
Last Answer : (b) Decreases the value of the expenditure and net tax revenue multiplier;
Description : More free users leads to ? A. At More Ad Revenue B. Less Ad Revenue C. No change in Ad Revenue D. None of the above
Last Answer : A. At More Ad Revenue
Description : Suppose you are developing a new drug, and have found that when it is administered in humans there is a substantial increase in the volume of urine pr
Last Answer : Suppose you are developing a new drug, and have found that when it is administered in humans ... Mimics the action of ADH D. Decreases blood pressure
Description : There was a substantial increase in foodgrains production specially wheat production, during the period after – (1) 1954 (2) 1964 (3) 1965 (4) 1966
Last Answer : (4) 1966 Explanation: He introduction of high-yielding varieties of Indian seeds after 1965 and the increased use of fertilizers and irrigation are known collectively as the Indian Green Revolution ... food grains, mainly wheat and rice. Food-grain yields continued to increase throughout the 1980s.
Description : What records a country's transactions (made by individuals, firms and government bodies.) with the rest of the world? a) Trade deficit b) Capital Budget c) Foreign imports d) Balance of Payments or BoP
Last Answer : b) other things remaining equal
Description : Which of the following is not the significance of small scale industries a. Employment generation b. Reduction of fiscal deficit c. Contribution to exports d. Mobilization of capital
Last Answer : Reduction of fiscal deficit
Description : If the balance on current and capital accounts of Balance of Payments (BoP) taken together is negative, then (a) It is a case of BoP surplus ; (b) It is a case of BoP surplus where the official reserve account is in surplus; (c) It is a case of BoP deficit ; (d) It is case of BoP disequilibrium
Last Answer : (c) It is a case of BoP deficit ;
Description : Did World War 1 cause the US trade deficit to increase?
Last Answer : Need answer
Description : Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government ... spending to fall d. a government budget deficit raises American exports and lowers American imports
Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall
Description : 10. Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a ... investment spending to fall d. a government budget deficit raises American exports and lowers American imports
Description : A machinery is purchased for Rs. 3,00,000 and Rs. 50,000 is spent on its installation. Rs. 5,000 is spent on fuel. What will be the amount of capital expenditure ? (A) Rs. 3,00,000 (B) Rs. 3,50,000 (C) Rs. 3,55,000 (D) None of these
Last Answer : Answer: Rs. 3,50,000
Description : An indifference curve measures the same level of - (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings
Last Answer : (2) Satisfaction from two commodities Explanation: An indifference curve is a locus of combinations of goods which derive the same level of satisfaction. so that the consumer is indifferent ... of various points showing different combinations of two goods providing equal utility to the consumer
Description : Effective demand depends on - (1) capital-output ratio (2) output-capital ratio (3) total expenditure (4) supply price
Last Answer : (4) supply price Explanation: Effective Demand is "the demand in which the consumer are able and willing to purchase at conceivable price" simply saying if the product price is low more ... Function or Price and Aggregate Supply Function or Price to explain the determination of effective demand.
Description : Which of the following doesn't appear on the liabilities side of the balance sheet ? 1. Capital 2. Loans 3. Advertisement expenditure 4. Share capital 5. None of these
Last Answer : Advertisement expenditure
Description : The process of budgeting helps in the control of A. Cost of production B. Liquidity C. Capital Expenditure D. All of the above
Last Answer : D. All of the above
Description : ______ provides an estimate of the capital amount that may be required for buying fixed assets needed for meeting production requirements. A. Production budget B. Cash budget C. Capital expenditure budget D. None of the above
Last Answer : B. Cash budget