Depreciation is loss in value of ________ (1) Final goods (2) Machinery (3) Capital stock (4) Stock of inventory

Depreciation is loss in value of ________ (1) Final goods (2) Machinery (3) Capital stock (4) Stock of inventory
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Machinery
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Depreciation is loss in value of _______. (1) Final goods (2) Machinery (3) Capital stock (4) Stock of inventory

Description : Depreciation is loss in value of _______. (1) Final goods (2) Machinery (3) Capital stock (4) Stock of inventory

Last Answer : (2) Machinery Explanation: The term depreciation represents loss or diminution in the value of an asset consequent upon wear and tear, obsolescence, effluxion of time or permanent fall in market value ... furniture, vehicles, plant etc. The wear and tear is general but primary cause of depreciation.

What are Capital goods? a) Goods used for consumption in the production process b) Goods such as tools, machinery, etc which are used to create final consumer goods c) Goods and services that are consumed fully when purchased by the consumers d) None of the above

Description : What are Capital goods? a) Goods used for consumption in the production process b) Goods such as tools, machinery, etc which are used to create final consumer goods c) Goods and services that are consumed fully when purchased by the consumers d) None of the above

Last Answer : : b) Goods such as tools, machinery, etc which are used to create final consumer goods

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

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.

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

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

What are consumption goods? a) Goods used for consumption in the production process b) Goods such as tools, machinery, etc which are used to create final consumption goods c) Goods and services that are consumed fully when purchased by the consumers d) None of the above

Description : What are consumption goods? a) Goods used for consumption in the production process b) Goods such as tools, machinery, etc which are used to create final consumption goods c) Goods and services that are consumed fully when purchased by the consumers d) None of the above

Last Answer : : c) Goods and services that are consumed fully when purchased by the consumers

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

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.

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

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

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 of buildings in a chemical plant is about 3% of its initial cost (C) Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment (D) In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

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)

. A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget? (a) Capital cost of a new collection vehicle (b) Depreciation of the machinery (c) Operatives wages (d) Fuel for the collection Vehicles

Description : . A Local Authority is preparing cash Budget for its refuse disposal department. Which of the  following items would not be included in the cash budget? (a) Capital cost of a new collection vehicle (b) Depreciation of the machinery (c) Operatives wages (d) Fuel for the collection

Last Answer : (b) Depreciation of the machinery

Which of the following is not a component of depreciation cost? (A) Repairs and maintenance cost (B) Loss due to obsolescence of the equipment (C) Loss due to decrease in the demand of product (D) Loss due to accident/breakdown in the machinery

Description : Which of the following is not a component of depreciation cost? (A) Repairs and maintenance cost (B) Loss due to obsolescence of the equipment (C) Loss due to decrease in the demand of product (D) Loss due to accident/breakdown in the machinery

Last Answer : (A) Repairs and maintenance cost

Value-added means value of - (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services

Description : Value-added means value of - (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services

Last Answer : (4) goods and services less cost of intermediate goods and services Explanation: Value added is an economic term to express the difference between the value of goods and the cost of materials or ... services by others. So it is of goods and services less cost of intermediate goods and services.

Value-added means value of (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services

Description : Value-added means value of (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services

Last Answer : goods and services less cost of intermediate goods and services

Adhu Ltd. owns machinery (rate of depreciation is 15%), the written down value of which as on 1st April 2017 is Rs.30 Lakh. Due to fire, entire assets in the block were destroyed and the insurer paid Rs.25 lakh. The eligible depreciation in respect of block : a) Rs.450000 b) Rs. 75000 c) Rs. 400000 d) Nil

Description : Adhu Ltd. owns machinery (rate of depreciation is 15%), the written down value of which as on 1st April 2017 is Rs.30 Lakh. Due to fire, entire assets in the block were destroyed and the insurer paid Rs.25 lakh ... depreciation in respect of block : a) Rs.450000 b) Rs. 75000 c) Rs. 400000 d) Nil

Last Answer : d) Nil

Under the Income Tax Act 1961, Depreciation on machinery is charged on : a) Purchase Price of the machinery b) Market Price of the Machine c) Written Down value d) A or B which is less

Description : Under the Income Tax Act 1961, Depreciation on machinery is charged on : a) Purchase Price of the machinery b) Market Price of the Machine c) Written Down value d) A or B which is less

Last Answer : c) Written Down value

What is the term in economics for the consumption of fixed capital? a) Investment b) Value added c) Production flow d) Depreciation

Description : What is the term in economics for the consumption of fixed capital? a) Investment b) Value added c) Production flow d) Depreciation

Last Answer : d) Depreciation

Which of the following is not an investment expenditure in goods and services? (1) Expansion of the main plant of a company (2) Purchase of a house (3) Purchase of machinery (4) An increase in business in ventories

Description : Which of the following is not an investment expenditure in goods and services? (1) Expansion of the main plant of a company (2) Purchase of a house (3) Purchase of machinery (4) An increase in business in ventories

Last Answer : (2) Purchase of a house Explanation: Investment expenditure refers to the expenditure incurred either by an Individual or a firm or the government for the creation of new capital assets like ... purchase of house cannot be considered as investment expenditure as it may be for personal use.

Plant arid machinery are - (1) Producers' goods (2) Consumers' goods (3) Distributors' goods (4) Free goods

Description : Plant arid machinery are - (1) Producers' goods (2) Consumers' goods (3) Distributors' goods (4) Free goods

Last Answer : (1) Producers' goods Explanation: Plant and machinery are Producers' goods. Together with stocks and work in progress, these goods are collectively termed 'Capital'.

Which of the following is not an investment expenditure in goods and services? (1) Expansion of the main plant of a company (2) Purchase of a house (3) Purchase of machinery (4) An increase in business inventories

Description : Which of the following is not an investment expenditure in goods and services? (1) Expansion of the main plant of a company (2) Purchase of a house (3) Purchase of machinery (4) An increase in business inventories

Last Answer :  Purchase of a house

Plant and machinery are (1) Producers’ goods (2) Consumers’ goods (3) Distributors’ goods (4) Free goods

Description : Plant and machinery are (1) Producers’ goods (2) Consumers’ goods (3) Distributors’ goods (4) Free goods

Last Answer : Producers’ goods

Payment of water charges by the farmers to the government represents - (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment

Description : Payment of water charges by the farmers to the government represents - (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment

Last Answer : (1) intermediate consumption Explanation: Intermediate consumption is an accounting concept which measures the value of the goods and services consumed as inputs by a process of production. It excludes fixed assets whose ... .g. bulk sugar) or completely used up (e.g. electric power, water, etc).

Payment of water charges by the farmers to the govern-ment represents (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment

Description : Payment of water charges by the farmers to the govern-ment represents (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment

Last Answer : intermediate consumption

The inventory should ordinarily be maintained at the site of the dead stock and should be checked once in______ year by the ________ a) A year, Head of the circle b) Two year, Head of the office c) A year, head of the office/ any other office selected by the head of the circle d) None of these

Description : The inventory should ordinarily be maintained at the site of the dead stock and should be checked once in______ year by the ________ a) A year, Head of the circle b) Two year, Head of the office c) A year, head of the office/ any other office selected by the head of the circle d) None of these

Last Answer : c) A year, head of the office/ any other office selected by the head of the circle

Gross profit is calculated by subtracting ________ from _________, a. operating expenses, net income b. sales discounts from sales revenue c. cost of goods sold, net sales revenue d. merchandise inventory, cost of goods sold

Description : Gross profit is calculated by subtracting ________ from _________, a. operating expenses, net income b. sales discounts from sales revenue c. cost of goods sold, net sales revenue d. merchandise inventory, cost of goods sold

Last Answer : c. cost of goods sold, net sales revenue

Intermediate goods are not included to calculate the final output because: a) they do not have value b) they have unknown value c) their value is included in final goods so they are not added to avoid the problem of double counting d) none of the above

Description : Intermediate goods are not included to calculate the final output because: a) they do not have value b) they have unknown value c) their value is included in final goods so they are not added to avoid the problem of double counting d) none of the above

Last Answer : : c) their value is included in final goods so they are not added to avoid the problem of double counting

The Finance Department can use which of the following methods to acquire capital for company activities? a. Current Debt, Stock Issues, Bond Issues, and Profits b. Profits, Current Debt, Withholding Pensions, and Stock Issues c. Liquidating Inventory, Stock Issues, Bond Issues and Profits d. Credit Lines, Bond Issues, Stock Issues, and Profits e. Current Debt, Stock Issues, Bond Issues, and cooking the books

Description : The Finance Department can use which of the following methods to acquire capital for company activities? a. Current Debt, Stock Issues, Bond Issues, and Profits b. Profits, Current Debt, Withholding ... Stock Issues, and Profits e. Current Debt, Stock Issues, Bond Issues, and cooking the books

Last Answer : a. Current Debt, Stock Issues, Bond Issues, and Profits

A limited company makes a net profit of Rs. 2,00,000 after writing off preliminary expenses amounting to Rs. 20,000 and providing for depreciation on assets amounting to Rs. 40,000 and gain of Rs. 10,000 on sale of a piece of machinery. What are the funds from operation ? (A) Rs. 2,00,000 (B) Rs. 2,40,000 (C) Rs. 2,50,000 (D) Rs. 2,60,000

Description : A limited company makes a net profit of Rs. 2,00,000 after writing off preliminary expenses amounting to Rs. 20,000 and providing for depreciation on assets amounting to Rs. 40,000 and gain of Rs. 10,000 on sale of a piece of ... 2,00,000 (B) Rs. 2,40,000 (C) Rs. 2,50,000 (D) Rs. 2,60,000

Last Answer : Answer: Rs. 2,50,000

Depletion method of depreciation is used in case of– (A) Cattle, Loose Tools, etc. (B) Mines, Quarries, etc. (C) Machinery, Building, etc. (D) Books

Description : Depletion method of depreciation is used in case of– (A) Cattle, Loose Tools, etc. (B) Mines, Quarries, etc. (C) Machinery, Building, etc. (D) Books

Last Answer : Answer: Mines, Quarries, etc.

Who defined investment as "the construction of a new capital asset like machinery or factory building"? (1) Hansen (2) J.M. Keynes (3) Harrod (4) J.R. Hicks

Description : Who defined investment as "the construction of a new capital asset like machinery or factory building"? (1) Hansen (2) J.M. Keynes (3) Harrod (4) J.R. Hicks

Last Answer : (2) J.M. Keynes Explanation: Investment expenditure refers to the creation of new assets i.e. an addition to the stock of existing capital assets. According to Keynes investment demand depends upon ... the rate of interest (IR). Investment demand decreases with the increase in the rate of interest.

What does a Leasing Company provide? (1) Machinery and capital equipment on hire (2) Legal guidance in establishing an enterprise (3) Office accommodation on hire (4) Technical consultancy and experts for a fee

Description : What does a Leasing Company provide? (1) Machinery and capital equipment on hire (2) Legal guidance in establishing an enterprise (3) Office accommodation on hire (4) Technical consultancy and experts for a fee

Last Answer : (1) Machinery and capital equipment on hire Explanation: Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, ... . Leasing provides opportunities to use available money to operate assets that can make more money over time.

Which of the following is active factor of production ? a. Labour b. Capital c. Machinery d. All of these

Description : Which of the following is active factor of production ? a. Labour b. Capital c. Machinery d. All of these

Last Answer : d. All of these

What does a Leasing Company provide ? (1) Machinery and capital equipment on hire (2) Legal guidance in establishing an enterprise (3) Office accommodation on hire (4) Technical consultancy and experts for a fee

Description : What does a Leasing Company provide ? (1) Machinery and capital equipment on hire (2) Legal guidance in establishing an enterprise (3) Office accommodation on hire (4) Technical consultancy and experts for a fee

Last Answer : Machinery and capital equipment on hire

Who defined investment as “the construction of a new capital asset like machinery or factory building” ? (1) Hansen (2) J.M. Keynes (3) Harrod (4) J.R. Hicks

Description : Who defined investment as “the construction of a new capital asset like machinery or factory building” ? (1) Hansen (2) J.M. Keynes (3) Harrod (4) J.R. Hicks

Last Answer : J.M. Keynes

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

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.

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

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

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 ... order to increase the output. When countries use their natural resources instead of capital then COR reduces.

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

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

Last Answer : (a) Depreciation

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

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

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

Which of the following is most likely to require special planning considerations related to asset valuation? a. Accelerated depreciation methods are used for amortizing the costs of factory equipment. b. The client has recently purchased an expensive copy machine. c. Assets costing less than P5,000 are expensed even when the expected life exceeds one year. d. Inventory is comprised of diamond rings.

Description : Which of the following is most likely to require special planning considerations related to asset valuation? a. Accelerated depreciation methods are used for amortizing the costs of factory equipment. b. ... even when the expected life exceeds one year. d. Inventory is comprised of diamond rings.

Last Answer : Inventory is comprised of diamond rings.

A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs. (A) 300 (B) 600 (C) 800 (D) 1000

Description : A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs. (A) 300 (B) 600 (C) 800 (D) 1000

Last Answer : (C) 800

Moisture absorbed in the windings or condensed on the surface of electrical machinery insulation ________. A. is good for long term preserving since most insulation is organic and contains some amount B. lowers the insulation value and is a common cause of fault grounds in idle machines C. will enhance insulation resistance only if it is fresh water and contains no salt D. reduces the amount of current supplied or drawn by the machine so horsepower is limited

Description : Moisture absorbed in the windings or condensed on the surface of electrical machinery insulation ________. A. is good for long term preserving since most insulation is organic and contains some amount B. ... D. reduces the amount of current supplied or drawn by the machine so horsepower is limited

Last Answer : Answer: B

NDP does not include (a) Payments made for income taxes ; (b) Depreciation allowances ; (c) Undistributed profits; (d) The value added from intermediate goods.

Description : NDP does not include (a) Payments made for income taxes ; (b) Depreciation allowances ; (c) Undistributed profits; (d) The value added from intermediate goods.

Last Answer : (b) Depreciation allowances ;

What do you mean by Gross National Product? a) The total value of goods and services produced in the country b) The total value of all transactions in the country c) Depreciation in the total value of goods and services produced in the country d) The total value of goods and services produced in the country and net factor income from abroad

Description : What do you mean by Gross National Product? a) The total value of goods and services produced in the country b) The total value of all transactions in the country c) Depreciation in the total ... d) The total value of goods and services produced in the country and net factor income from abroad

Last Answer : Answer- d

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 single tax that replaces State taxes like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods

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 : (3) A single tax that replaces State taxes like, surcharge, turnover tax, etc. Explanation: A value added tax (VAT) is a form of consumption tax. A VAT is like a sales tax in that ... under the single tax system based primarily or exclusively on one tax, typically chosen for its special properties.

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 a percent of the value of the capital goods c. When the demand for electricity would fall, the price of electricity would also fall d. All of the above

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

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 single tax that replaces State taxes like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods

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. 

Final goods refer to those goods which are used either for `"______"` or for `"________"`.

Description : Final goods refer to those goods which are used either for `"______"` or for `"________"`.

Last Answer : Final goods refer to those goods which are used either for `"______"` or for `"________"`. ... C. Resale , investment D. Resale , further production

Goods which are meant either for consumption or for investment are called - (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods

Description : Goods which are meant either for consumption or for investment are called - (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods

Last Answer : (1) Final goods Explanation: All goods which are meant either (i) for consumption by consumers or (ii) for investment by firms are called final goods. They are finished goods, meant for final ... stages of production. Cars, television sets, cloth, food, machinery, equipments etc. are final goods.

Gross National Product is the money measure of - (1) all tangible goods produced in a country (2) final goods and services produced in the economy (3) services generated annually in the economy (4) all tangible goods available in the economy

Description : Gross National Product is the money measure of - (1) all tangible goods produced in a country (2) final goods and services produced in the economy (3) services generated annually in the economy (4) all tangible goods available in the economy

Last Answer : (2) final goods and services produced in the economy Explanation: Gross national product (GNP) is the market value of all products and services produced in one year by labour and property supplied ... (including income of those located abroad), minus income of non-residents located in that country.

The goods that are used as raw material for further production are known by which name: (a) Final goods (b) Material goods (c) Intermediate goods (d) Consumer goods

Description : The goods that are used as raw material for further production are known by which name: (a) Final goods (b) Material goods (c) Intermediate goods (d) Consumer goods

Last Answer : (c) Intermediate goods

Gross National Product is the money measure of (1) all tangible goods produced in a country (2) final goods and services produced in the economy (3) services generated annually in the economy (4) all tangible goods available in the economy

Description : Gross National Product is the money measure of (1) all tangible goods produced in a country (2) final goods and services produced in the economy (3) services generated annually in the economy (4) all tangible goods available in the economy

Last Answer :  final goods and services produced in the economy

Goods which are meant either for consumption or for investment are called (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods

Description : Goods which are meant either for consumption or for investment are called (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods

Last Answer : Final goods