What is meant by 'Capital Gain'? (1) Part of profits added to the capital (2) Appreciation in the money value of assets (3) Additions to the capital invested in a business (4) None of these

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Answer :

(2) Appreciation in the money value of assets Explanation: A capital gain is a profit that results from a disposition of a capital asset, such as stock, bond or real estate, where the amount realized on the disposition exceeds the purchase price. The gain is the difference between a higher selling price and a lower purchase price. Capital gains may refer to "investment income" that arises in relation to real assets. In other words, a capital gain represents an appreciation in value accruing over a prescribed period of time on the asset.

Related questions

Description : What is meant by ‘Capital Gain’ ? (1) Part of profits added to the capital (2) Appreciation in the money value of assets (3) Additions to the capital invested in a business (4) None of these

Last Answer : Appreciation in the money value of assets

Description : Sale of products from test run before production run is a) Deducted from actual cost b) Added to actual cost of assets c) Charged as pre-profits d) Charged as preliminary expenses

Last Answer : a) Deducted from actual cost

Description : An investor invested a sum of Rs. 12 lakhs in Company P in 1998. The total amount received after one year was re-invested in the same Company for one more year. The total appreciation received by the investor on his investment ... 2, 42,200 C. Rs. 2, 25,600 D. Rs. 2, 16,000 E. None of these

Last Answer : C. Rs. 2, 25,600

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Last Answer : (1) expected rate of return on new investment Explanation: The volume of investment depend upon the following two factors: (1) rate of interest: and (2) marginal efficiency of capital. Before ... partly on expectations of future yields and partly on the actual price of the capital good concerned.

Description : ‘Marginal efficiency of capital’ is (1) expected rate of return on new investment (2) expected rate of return of existing investment (3) difference between rate of profit and rate of interest (4) value of output per unit of capital invested

Last Answer :  expected rate of return on new investment

Description : In financial accounting of a chemical plant, which of the following relationship is invalid? (A) Assets = equities (B) Assets = liabilities + net worth (C) Total income = costs + profits (D) Assets = capital

Last Answer : (D) Assets = capital

Description : Which of the following is true about the way by which SDG&E has been regulated by the PUC? a. SDG&E has been allowed to earn very high economic profits b. The profits of SDG&E are calculated as ... the demand for electricity would fall, the price of electricity would also fall d. All of the above

Last Answer : b. The profits of SDG&E are calculated as a percent of the value of the capital goods

Description : The exemption under section 54 of the Income Tax Act, 1961 is available ___________. e) to the extent of capital gain invested in the house property f) proportionate to the net consideration price invested g) to the extent of amount actually invested h) to the extent of net consideration

Last Answer : to the extent of capital gain invested in the house property

Description : Durga invested Rs X for 5 months and Y for remaining time. Moushsree invested Rs Y for 9.months and X for the remaining time. At the end of the year profits are in the ratio 4:5. Then find what % of X is Y? A) 6.2 % B) 7.69% C) 5.25% D) 3.2%

Last Answer : Answer: B)  Durga investment =5X+7Y  Moushsree investment =9Y+3X  (5X+7Y)/(9Y+3X)=4/5  X/Y=1/13 *100=7.69%

Description : Capital : Output Ratio of a measures - (1) its per unit cost of production (2) the amount of capital invested per unit of output (3) the ratio of capital depreciation to quantity of output (4) the ratio of working capital employed to quantity of output

Last Answer : (2) the amount of capital invested per unit of output Explanation: Capital output ratio is the ratio of capital used to produce an output over a period of time. This ratio has a tendency to be ... its resources in lieu of capital to boost its output; hence the resulting capital output ratio is low.

Description : Capital output ratio of a commodity measures - (1) its per unit cost of production (2) the amount of capital invested per unit of output (3) the ratio of capital depreciation to quantity of output (4) the ratio of working capital employed to quantity of output

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Last Answer : (3) Liquidity preference Explanation: According to the classical view, rate of interest is determined by the interaction of supply of and demand for capital. Thus this theory is popularly called ... higher shall be the rate of interest. The liquidity preference constitutes the demand for money.

Description : Rate of interest is determined by - (1) The rate of return on the capital invested (2) Central Government (3) Liquidity preference (4) Commercial Banks

Last Answer : (4) Commercial Banks Explanation: Bank Rate is determined by the Reserve Bank of India. The rate of interest is determined by the commercial banks in India. As per RBI notification, banks are free to determine rates of interest subject to BPLR and spread guidelines.

Description : Rate of interest is determined by (1) The rate of return on the capital invested (2) Central Government (3) Liquidity preference (4) Commercial Banks

Last Answer : Liquidity preference

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Last Answer : the amount of capital invested per unit of output

Description : ____________ is the amount invested by the owner of a business. (a) Cash (b) Money (c) Asset (d) Capital

Last Answer : ____________ is the amount invested by the owner of a business. (a) Cash (b) Money (c) Asset (d) Capital

Description : Three friends A, B and C started a business by investing a sum of money in the ratio of 5 : 7 : 6. After 6 months C withdraws half of his capital. If the sum invested by A' is Rs 40,000, out of a total annual ... share will be a) Rs 9,000 b) Rs 12,000 c) Rs 11,000 d) Rs 10,000 e) None of these

Last Answer : Answer: A Sum invested by A , B and C is 5 * 12:7 * 12:6 * 6 + 3 * 6 or 60 : 84 : 54 or 10 : 14 : 9 :: Share of C = ( 9 / 33 ) * 33000 = Rs. 9000

Description : Under net assets method , accumulated profits should not form part of liabilities.

Last Answer : TRUE

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Last Answer : A 16%

Description : A and B entered into a partnership investing Rs. 16000 and Rs. 12000 respectively. After 3 months, A withdrew Rs. 5000 while B invested Rs. 5000 more. After 3 more months C joins the business with a capital of Rs. 21000 ... of Rs. 26400 after one year by A.Rs. 2400 B.Rs. 3600 C.Rs. 3000 D.Rs. 4800 

Last Answer : Answer: B (Rs. 3600) Explanation: A:B: C = 16000 x3 + 11000×9:12000 x 3 + 17000 x 9:21000 x 6 = 147:189:126 = 7:9:6 Difference of B and C’s shares = Rs. [26400 x (9/22) — 26400 x (6/22)) = Rs. 3600.

Description : 3 people A, B, C invested in a business in the ratio of 5:6:9. After 3months B withdraw half of her capital. If the Sum invested by A is 32000, then what is the profit earned by B at the end of the year out of the total profit of Rs. 48250? A) 17965.33 B) 70767.50 C) 46189.25 D) 10193.66

Last Answer : Answer: D) Let A, B, C put amounts be 5x,6x,9x respectively Then A's investment is 5x=32000=> x=Rs.6400 Then, B, C puts amount is Rs.38400 & 57600 =32000*12 : 38400 *3 +19200 * 9:57600*12 =>384000:288000:691200 =20:15:36 B’s profit is 48250* 15/71 =Rs. 10193.66

Description : Is there a relatively safe way to have a 10% return on invested money in this economy?

Last Answer : eden2eve: I suggest an investment in pine-trees. They take about 45 years to mature but the return is pretty close to 10% over the life of the investment and they are relatively safe. You can lose ... to develop a good relationship with a forester to show you the ropes, mark trees for thinning, etc.

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Last Answer : (b) Depreciation allowances ;

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Last Answer : (1) the value of intermediate consumption Explanation: Intermediate consumption is an accounting flow which consists of the total monetary value of goods and services consumed or used up as inputs in ... how it is exactly defined and estimated will importantly affect the size of the GDP estimate.

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Last Answer : d) Depreciation

Description : What is Value Added Tax (VAT) ? (1) A simple, transparent, easy to pay tax imposed on consumers (2) A new initiative taken by the Government to increase the tax-burden of high income groups (3) A ... like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods 

Last Answer : A single tax that replaces State taxes like, surcharge, turnover tax, etc. 

Description : Value of out put and value added can be distinguished if we know: (1) the value of intermediate consumption (2) the value of net indirect taxes (3) the value of the sales (4) the value of consumption of fixed capital

Last Answer : the value of intermediate consumption 

Description : The work was directed by Tribonian from 529 to 534. Originally planned as three parts (Code, Digest and Institutes), further additions are now considered as a fourth part (Novels). The present name was only adopted in 1583 when it was printed by Dionysius Gothofredus. What?

Last Answer : Corpus Juris Civilis. (Also accept Code of Justinian.)

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Last Answer : (B) Tax imposed on interstate trade

Description : What is Integrated Goods and Services Tax? (A) Tax imposed on imported goods and services (B) Tax imposed on value additions to exports (C) Tax imposed on interstate trade (D) Tax on international trade

Last Answer : (C) Tax imposed on interstate trade

Description : Which of the following statements is correct for a conservative financing policy for a firm  relative to a former aggressive policy? A. The firm uses long-term financing to finance all fixed and current ... its risk profile. D. The firm will increase its dividends per share (DPS) this period.

Last Answer : B. The firm will see an increase in its expected profits.

Description : Investment is equal to : (1) gross total of all types of physical capital assets (2) gross total of all capital assets minus wear and tear (3) stock of plants, machines and equipments (4) None of the above

Last Answer : (2) gross total of all capital assets minus wear and tear Explanation: Capital formation is frequently thought of as a measure of total "investment", in the sense of that portion of ... concept that includes investment in all kinds of capital assets, whether physical property or financial assets.

Description : Investment is equal to - (1) gross total of all types of physical capital assets (2) gross total of all capital assets minus wear and tear (3) stock of plants, machines and equipments (4) None of these

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Description : Investment is equal to : (1) gross total of all types of physical capital assets (2) gross total of all capital assets minus wear and tear (3) stock of plants, machines and equipments (4) None of the above

Last Answer : gross total of all capital assets minus wear and tear 

Description : Which of the following is least likely to be part of the calculation of the terminal- year incremental net cash flow for an energy-related expansion project? A. An initial working capital ... Disposal/reclamation costs C. Capitalized expenditures D. Salvage value of any sold or disposed assets

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Last Answer : (3) falls as the annual yield of an investment rises. Explanation: The internal rate of return on an investment or project is the "annualized effective compounded re-turn rate" or discount rate ... the investment equals the net present value of the benefits (positive cash flows) of the investment.

Description : The internal rate of return (1) must be less than the interest rate if the firm is to invest. (2) makes the present value of profits equal to the present value of costs. (3) falls as the annual yield of an investment rises. (4) is equal to the market interest rate for all the firm’s investment. 

Last Answer : falls as the annual yield of an investment rises.

Description : When there is an official change in the exchange rate of domestic currency, then it is called (1) Appreciation (2) Depreciation (3) Revaluation (4) Deflation

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Last Answer : Revaluation

Description : Anwar and Bhaskar started a business with investments of Rs.15000 and Rs.24000. At the end of 4 months from the start of the business, both withdrew one-third of their respective capital. Find the ratio of their profits in the total profit at the end of one year. a)1:2 b)3:4 c)4:5 d)5:8

Last Answer : d)5:8

Description : Which of the following is not used in capital budgeting? A. B. C. D. Time Value of Money Sensitivity Analysis Net Assets Value Method Cash Flows

Last Answer : Net Assets Value Method

Description : Surplus , if any , from the creditors having been secured on the assets specially pledged , is added to the estimated realisable value of the assets not specifically pledged.

Last Answer : TRUE

Description : Which of these items are excluded in the computation of National Income under value added method? (a) Own acquired fixed assets by the Government enterprises, Govt. and household; (b) Production for self-consumption ; (c) Imputed rent for own occupied house ; (d) All the three

Last Answer : (d) All the three

Description : Which of the following groups suffer the most from inflation? (1) Debtros (2) Creditors (3) Business class (4) Holders of real assets

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Description : Which of the following groups suffer the most from inflation? (1) Debtros (2) Creditors (3) Business class (4) Holders of real assets

Last Answer : Creditors

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Last Answer : d. Minimum support price.

Description : Do you do start business loans. I have no collateral and I do not have money invested. Its just me and the idea for the store.?

Last Answer : No you can only get a business loan with something down.

Description : The retailer is usually in an excellent position to 1. make the most profits in the channel 2. be the channel leader 3. gain feedback from consumers 4. co-ordinate the production strategy 5. none of these

Last Answer : gain feedback from consumers