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

1 Answer

Answer :

(2) gross total of all capital assets minus wear and tear Explanation: Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets. In economic statistics and accounts, capital formation can be valued gross, i.e., before deduction of consumption of fixed capital (or "depreciation"), or net, i.e. after deduction of "depreciation" write-offs. The net valuation method views "depreciation" as the compensation for the cost of replacing fixed equipment used up or worn out, which must be deducted from the total investment volume to obtain a measure of the "real" value of investments: the depreciation write-off compensates and cancels out the loss in capital value of assets used due to wear & tear, obsolescence, etc.

Related questions

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 the above

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

Description : In accounting terms, what constitutes the 'closing stock'? (1) Net Investment (2) Gross Investment-Capital Losses (3) Opening Stock-Capital Losses (4) Opening Stock + Net Investment - Capital Losses

Last Answer : (4) Opening Stock + Net Investment - Capital Losses Explanation: Closing stock refers to the goods remaining un-sold during the year. It includes finished products, raw materials, or work in progress ... with the following calculation: Opening stock + Purchases - Closing stock = Cost of goods sold.

Description : In accounting terms, what constitutes the ‘closing stock’? (1) Net Investment (2) Gross Investment-Capital Losses (3) Opening Stock-Capital Losses (4) Opening Stock + Net Investment – Capital Losses

Last Answer : Opening Stock + Net Investment – Capital Losses

Description : The definition of 'small-scale industry' in India is based on - (1) sales by the unit (2) Investment In machines and equipments (3) market coverage (4) export capacity

Last Answer : (2) Investment In machines and equipments Explanation: Generally, small-scale sector is defined in terms of investment ceilings on the original value of the installed plant and machinery. As per ... -scale and large-scale industries. This limit is being continuously raised up wards by government.

Description : The definition of ‘small-scale industry’ in India is based on (1) sales by the unit (2) investment in machines and equipments (3) market coverage (4) export capacity

Last Answer : investment in machines and equipments

Description : Net capital employed is equal to --------------- a) Total assets minus liabilities b) Fixed asset plus net working capital c) Total asset minus long-term liabilities d) Total assets

Last Answer : b) Fixed asset plus net working capital

Description : GDP at market prices is the sum of Consumption, Investment, Government Spending and Net Exports. „Net‟ exports is (a) Gross exports minus depreciation ; (b) Exports minus imports ; (c) Gross exports earnings minus capital inflow ; (d) Export minus imports of merchandize 

Last Answer : (b) Exports minus imports ;

Description : Gross profit is equal to 1. selling price minus purchase price 2. selling price minus purchase price plus depreciation 3. depreciation plus unsold stock minus purchase price 4. purchase price minus production cost 5. None of these

Last Answer : selling price minus purchase price

Description : What is the sum total of gross value added of all the firms in the country minus the depreciation? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Last Answer : c) Net Domestic Product

Description : Financial interrelation ratio is equal to (a) Total issues / National income ; (b) Primary issues / Net capital formation; (c) Total issues / Net capital formation ; (d) Total stock of financial assets/Stock of fiscal assets

Last Answer : (c) Total issues / Net capital formation

Description : Net working capital refers to A. total assets minus fixed assets B. current assets minus current liabilities C. current assets minus inventories D. current

Last Answer : B. current assets minus current liabilities

Description : To financial analysts, "working capital" means the same thing as . A. Total assets B. fixed assets C. current assets D. current assets minus current liabilities.

Last Answer : C. current assets

Description : Net Assets minus Capital Reserve is _________ (A) Goodwill (B) Total assets (C) Purchase consideration (D) None of these

Last Answer : (C) Purchase consideration

Description : Net Assets minus Capital Reserve is _________ (A) Goodwill (B) Total assets (C) Purchase consideration (D) None of these

Last Answer : (C) Purchase consideration

Description : The difference between gross investment and net investment is (a) Depreciation (b) Acceleration © Deceleration (d) Capital investment

Last Answer : (a) Depreciation

Description : Gross earning is equal to the total income minus (A) Total product cost (B) Fixed cost (C) Income tax (D) None of these

Last Answer : A) Total product cost

Description : Gross Profit means - (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure

Last Answer : (4) Total receipts over total expenditure Explanation: In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting ... . Gross profit = Net sales (total receipts) - Cost of goods sold (total expenditure).

Description : Gross Profit means (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure

Last Answer : Total receipts over total expenditure

Description : The payback period is the period  A. a project takes to pay back the loan taken to purchase the capital assets  B. equal to the useful life of the machines  C. a project takes to recover its initial cash outflow  D. over which the project will be getting operating cash inflows

Last Answer : C. a project takes to recover its initial cash outflow

Description : In a business, raw materials, components, work in progress and finished goods are jointly regarded as - (1) capital stock (2) inventory (3) investment (4) net worth

Last Answer : (2) inventory Explanation: Inventory refers to raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business's assets that are ... of the primary sources of revenue generation and subsequent earnings for the company's shareholders/owners.

Description : Which of the following is Stock concept ? (a) Capital (b) Investment (c) Income (d) Profit

Last Answer : (a) Capital

Description : Keynesian theory of investment is known as ----- (a) Marginal Efficiency of Capital Theory. (b) Marginal Efficiency of Investment Theory. © Optimum Stock of Capital Theory. (d) Actual Stock of Capital Theory.

Last Answer : (b) Marginal Efficiency of Investment Theory.

Description : In a business, raw materials, components, work in progress and finished goods are jointly regarded as (1) capital stock (2)inventory (3) investment (4)net worth

Last Answer : inventory

Description : What is the Gross National Product minus the depreciation? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Last Answer : d) Net National product

Description : 'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from (A) 1.2 to 1.4 (B) 2.5 to 2.7 (C) 4.2 to 4.4 (D) 6.2 to 6.4

Last Answer : C) 4.2 to 4.4

Description : Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment. (A) 10 to 20 (B) 20 to 40 (C) 45 to 60 (D) 65 to 75

Last Answer : (B) 20 to 40

Description : Pick out the wrong statement. (A) The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment (B) Annual depreciation rate ... chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

Last Answer : (D) In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

Description : Which of the following economic concepts is categorised on the basis of Current Account or Capital Account or both? A. Balance of Payments B. Value of the food grain stock of a country C. Gross National Product D. Gross National Income(GNI) E. Total collection of Direct Taxes in a year

Last Answer : A. Balance of Payments Explanation: A Balance of payments statements is a summary of a nation‘s total economic transactions undertaken on international account. It is usually composed of two sections :-

Description : The sum total of incomes received for the services of labour, land or capital in a country is called (1) Gross domestic product (2) National income (3) Gross domestic income (4) Gross national income

Last Answer : (3) Gross domestic income Explanation: The Gross Domestic Income (GDI) is the total in-come received by all sectors of an economy within a nation. It includes the sum of all wages, profits, ... services), the gross domestic income of a count should exactly equal its gross domestic product (GDP).

Description : The sum total of incomes received for the services of labour, land or capital in a country is called : (1) Gross domestic product (2) National income (3) Gross domestic income (4) Gross national income

Last Answer :  Gross domestic income

Description : The amount of current assets that varies with seasonal requirements is referred to as  working capital. A. permanent B. net C. temporary D. gross

Last Answer : C. temporary

Description : The amount of current assets required to meet a firm's long-term minimum needs is  referred to as working capital. A. permanent B. temporary C. net D. gross

Last Answer : A. permanent

Description : Gross assets are Rs.1,01,000, fictitious assets Rs.350 are included in the gross assets. External liabilities are Rs.7,500. 6% prefer share capital is Rs.45,000. Equity capital is 4,500 equity shares of Rs.10 each fully ... . The Net Asset Value Per share is A Rs.11 B Rs.10.70 C Rs.15 D Rs.20

Last Answer : Rs.10.70

Description : Current ratio shows----- a) The change in gross profit b) The working capital position c) The liquidity of assets d) The change in net profit

Last Answer : b) The working capital position

Description : How does physical wear and tear result in depreciation?

Last Answer : Physical Wear/Tear tend to worn out the Asset decreasing its productivity over period. Thus, market value decrease for the asset.

Description : Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product ... a rise in real gross National product and investment (4) a rise in prices of output and resources

Last Answer : (1) a fall in prices of output and resources Explanation: In 1936, John Maynard Keynes published the book "The General Theory of Employment, Interest and Money to explain the prolonged and ... at a below-full-employment equilibrium. Suppose that the economy is at the full-employment equilibrium.

Description : Which of the following is not required while computing Gross National Product (GNP)? (1) Net foreign investment (2) Private investment (3) Per capita income of citizens (4) Purchase of goods by government

Last Answer : (3) Per capita income of citizens Explanation: Gross National Product (GNP) is the market value of all products and services produced in one year by labour and property supplied by the ... measures the value of goods and services that the country's citizens produced regardless of their location.

Description : The difference between the Gross value added and Net value added is: a) Investment b) Value added c) Production flow d) Depreciation

Last Answer : d) Depreciation

Description : What does the term Gross investment mean while denoting a nation'seconomy? a) Gross investment= Net investment + Depreciation b) Gross investment= Net investment - Depreciation c) Gross investment= Depreciation - Net investment d) None of the above

Last Answer : a) Gross investment= Net investment + Depreciation

Description : Which of the following is not required while computing Gross National Product (GNP) ? (1) Net foreign investment (2) Private investment (3) Per capita income of citizens (4) Purchase of goods by government

Last Answer : Per capita income of citizens 

Description : According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and ... rise in real gross National product and investment (4) a rise in prices of output and resources

Last Answer :  a fall in prices of output and resources

Description : A time budget is an estimate of the total hours an audit is expected to take. The following are among the factors to be considered in developing this budget, except a. Client's size as indicated ... experience of available staff. d. Whether the audit is performed during the interim or at year-end.

Last Answer : Whether the audit is performed during the interim or at year-end.

Description : Intangible assets are a. listed under current assets on the balance sheet. b. not listed on the balance sheet because they do not have physical substance. c. noncurrent resources. d. listed as a long-term investment on the balance sheet.

Last Answer : Intangible assets are a. listed under current assets on the balance sheet. b. not listed on the balance sheet because they do not have physical substance. c. noncurrent resources. d. listed as a long-term investment on the balance sheet.

Description : A profit maximizing firm will invest up to the level of investment where (a) The cost of borrowing equals marginal efficiency of capital (b) The cost of borrowing is greater than marginal ... marginal efficiency of capital (d) The cost of borrowing is equal to marginal propensity to consume.

Last Answer : (a) The cost of borrowing equals marginal efficiency of capital

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

Last Answer : D. Salvage value of any sold or disposed assets

Description : Large investment is made in fixed assets, the project will be termed as __________. A. Capital Intensive. B. Labour Intensive. C. Product Intensive. D. Market Intensive.

Last Answer : A. Capital Intensive.

Description : During the fiscal year 2010-11 gross fixed capital formation or domestic investment was _____ A. 10.3% B. 11.11% C. 13.4% D. 14.7%

Last Answer : ANSWER: C

Description : During the fiscal year 2010-11 gross fixed capital formation or domestic investment was _____ A. 10.3% B. 11.11% C. 13.4% D. 14.7%

Last Answer : ANSWER: C

Description : the ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio. (A) Cash reserve (B) Capital (C) Turnover

Last Answer : (C) Turnover