What is an example of investing in capital goods by a company?

What is an example of investing in capital goods by a company?
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1 Answer

Answer :

Purchasing additional production machinery, delivery vehicles, renting additional office space, buying new computer systems.
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Cash payment suppliers of goods and services are shown under-------------. a) Operating b) Financing c) Investing

Description : Cash payment suppliers of goods and services are shown under-------------. a) Operating b) Financing c) Investing

Last Answer : a) Operating

The return available by investing the capital elsewhere is known as (A) profit rate (B) discount rate (C) opportunity cost (D) return on investment

Description : The return available by investing the capital elsewhere is known as (A) profit rate (B) discount rate (C) opportunity cost (D) return on investment

Last Answer : (C) opportunity cost

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. The share of B exceeds that of C, out of a total profit of Rs. 26400 after one year by A.Rs. 2400 B.Rs. 3600 C.Rs. 3000 D.Rs. 4800

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.

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 profit of Rs 33,000, C’s share will be a) Rs 9,000 b) Rs 12,000 c) Rs 11,000 d) Rs 10,000 e) None of these

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

Tonu started a business investing Rs. 90,000. After 3 months, reetu joined him with a capital of Rs. 1,20,000. After 6 months, shalu joined them with a capital of Rs.1,80,000. At the end of the year, they made a profit of Rs.33000. find the share of shalu. A) 13200 B) 6600 C) 7500 D) 12000

Description : Tonu started a business investing Rs. 90,000. After 3 months, reetu joined him with a capital of Rs. 1,20,000. After 6 months, shalu joined them with a capital of Rs.1,80,000. At the end of the year, they made a profit of Rs.33000. find the share of shalu. A) 13200 B) 6600 C) 7500 D) 12000

Last Answer : Answer: B) Ratio of their capitals = (90000*12):(1,20,000*9): (1,80,000*3) = 2:2:1 Tonu’s share = Rs(33000*2/5) = Rs.13200 Reetu’s share = Rs(33000*2/5) = Rs.13200 Shalu’s share = Rs(33000*1/5) = Rs.6600

Can you share the tips for investing in a gas company?

Description : Can you share the tips for investing in a gas company?

Last Answer : Save up a lot of money write out a plan do the research and really try hard to find the right company then make the choice to invest in it and thats my opinion.

Is there a financial planning company in Fort Worth, Texas that offers investing services?

Description : Is there a financial planning company in Fort Worth, Texas that offers investing services?

Last Answer : Yes, there are financial planning companies in Fort Worth, Texas. A few of these companies that offer investing services include Ameriprise Financial, Principal Financial Group, and Clifton Capital Partners.

Forbes is a global media company, focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle: Gates has topped Forbes list of the 400 richest Americans for about ____ years in a row. A. 5 Years B. 7 Years 82 C. 10 Years D. 24 Years

Description : Forbes is a global media company, focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle: Gates has topped Forbes list of the 400 richest Americans for about ____ years in a row. A. 5 Years B. 7 Years 82 C. 10 Years D. 24 Years

Last Answer : ANSWER: D

Forbes is a global media company, focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle: Gates has topped Forbes list of the 400 richest Americans for about ____ years in a row. A. 5 Years B. 7 Years C. 10 Years D. 24 Years

Description : Forbes is a global media company, focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle: Gates has topped Forbes list of the 400 richest Americans for about ____ years in a row. A. 5 Years B. 7 Years C. 10 Years D. 24 Years

Last Answer : ANSWER: D

Forbes is a global media company, focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle: Gates has topped Forbes list of the 400 richest Americans for about ____ years in a row. A. 5 Years B. 7 Years C. 10 Years D. 24 Years

Description : Forbes is a global media company, focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle: Gates has topped Forbes list of the 400 richest Americans for about ____ years in a row. A. 5 Years B. 7 Years C. 10 Years D. 24 Years

Last Answer : ANSWER: D

A company is considering investing surplus funds in a project. Calculate the NPV at 10 % discount rate for the following data Project-A Year 0- (100) Year 1-100 Year 2-100 A. 73.5 B. 173.5 C. 273.5 D.100

Description : A company is considering investing surplus funds in a project. Calculate the NPV at  10 % discount rate for the following data  Project-A Year 0- (100) Year 1-100 Year 2-100  A. 73.5  B. 173.5  C. 273.5  D.100

Last Answer : A. 73.5

If a company is given credit terms of 2/10, n/30, it should a. hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during this time. b. pay within the discount period and recognize a savings. c. pay within the credit period but don't take the trouble to invest the cash while waiting to pay the bill. d. recognize that the supplier is desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.

Description : If a company is given credit terms of 2/10, n/30, it should a. hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during ... desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.

Last Answer : b. pay within the discount period and recognize a savings.

Rent received by a company (whose main business is real estate) is classified as a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Description : Rent received by a company (whose main business is real estate) is classified as a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Last Answer : c) Operating activity

Cash payment on redemption of debenture is an example of cash flow from _________ activities a) Operating b) Investing c) Financing d) Others

Description : Cash payment on redemption of debenture is an example of cash flow from _________ activities a) Operating b) Investing c) Financing d) Others

Last Answer : c) Financing

Cash receipts from royalties is an example of cash flow from__________ a) Investing activities b) Financing activities c) Operating activities d) None of these

Description : Cash receipts from royalties is an example of cash flow from__________ a) Investing activities b) Financing activities c) Operating activities d) None of these

Last Answer : a) Investing activities

Which of the following is an example of fraudulent financial reporting? a. The treasurer diverts customer payments to his personal due, concealing hisactions by debiting an expense account,thus overstating expenses. b. Company management changesinventory count tags and overstatesending inventory, while understatingcost of goods sold. c. An employee steals inventory and the“shrinkage” is recorded in cost of goodssold. d. An employee steals small tools from thecompany and neglects to return them;the cost is reported as a miscellaneousoperating expense

Description : Which of the following is an example of fraudulent financial reporting? a. The treasurer diverts customer payments to his personal due, concealing hisactions by debiting an expense account, thus ... the company and neglects to return them; the cost is reported as a miscellaneous operating expense

Last Answer : Company management changes inventory count tags and overstates ending inventory, while understating cost of goods sold

What is the capital goods industry ?

Description : What is the capital goods industry ?

Last Answer : It goes without saying that there is no capital or heavy industry in Bangladesh. However, in order to strengthen the foundation of a country's economy, capital industry is a must. The factory ... is called capital industry. Such as Joydebpur Machine and Tools Factory , Chittagong Steel Mill etc.

Is there any term such as outsourcing of goods or capital? Which is correct?

Description : Is there any term such as outsourcing of goods or capital? Which is correct?

Last Answer : Global outsourcing of capital also referred to as outsourcing or business process outsourcing, global outsourcing involves contracting the operations of a specific business process to a third- ... design, research design, content writing, engineering, diagnostic services and legal documentation.

The goods taken by the proprietor from the shop is debited to– (A) Shop account (B) Goods account (C) Capital account (D) Drawings accounts

Description : The goods taken by the proprietor from the shop is debited to– (A) Shop account (B) Goods account (C) Capital account (D) Drawings accounts

Last Answer : Answer: Drawings accounts

Which one of the following transactions changes the current ratio ? (A) Purchase of goods for cash (B) Plant acquired on account (C) Sold goods on credit (D) Debentures converted into equity capital

Description : Which one of the following transactions changes the current ratio ? (A) Purchase of goods for cash (B) Plant acquired on account (C) Sold goods on credit (D) Debentures converted into equity capital

Last Answer : Answer: Plant acquired on account

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.

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.

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 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.

An increase in per capital income is not an indication of an increase in the economic welfare of the people - (1) When such increase is the result of an increased production action of comforts (2) When such increase is the result of an increase in agricultural production (3) When it is the result of an increase in the production of industrial goods (4) When such increase is the result of increased production of intoxicants

Description : An increase in per capital income is not an indication of an increase in the economic welfare of the people - (1) When such increase is the result of an increased production action of ... the production of industrial goods (4) When such increase is the result of increased production of intoxicants

Last Answer : (4) When such increase is the result of increased production of intoxicants Explanation: An increase in per capita income due to increased production of intoxicants cannot be taken as economic ... population, include: GDP, literacy, access to health care, and assessments of environmental quality.

Core Industries are - (1) Basic industries (2) Consumer goods industries (3) Capital goods industries (4) Government industries

Description : Core Industries are - (1) Basic industries (2) Consumer goods industries (3) Capital goods industries (4) Government industries

Last Answer : (1) Basic industries Explanation: Core Industries are those necessary industries in an economy that are necessary for industrialization of a country. Such industries include Machine tools, chemicals, ... such as that of foreign exchange requirements should govern the definition of the core sector.

Enterpreneurial ability is a special kind of labour that - (1) is hired out to firms at high wages (2) organizes the process of production (3) produces new capital goods to earn interest (4) manages to avoid losses by continual innovation

Description : Enterpreneurial ability is a special kind of labour that - (1) is hired out to firms at high wages (2) organizes the process of production (3) produces new capital goods to earn interest (4) manages to avoid losses by continual innovation

Last Answer : (2) organizes the process of production Explanation: In economics, factors of production are the inputs to the production process. Factors of production' may also refer specifically to the 'primary factors', ... the other factors of production, land, labor, and capital, in order to make a profit.

Economic progress of a country is determined by - (1) Increase in per capita income of people of country (2) Increase in the price of produced capital goods during the year (3) Increased numbers of Trade Unions (4) Fall in the general price level of a country

Description : Economic progress of a country is determined by - (1) Increase in per capita income of people of country (2) Increase in the price of produced capital goods during the year (3) Increased numbers of Trade Unions (4) Fall in the general price level of a country

Last Answer : (1) Increase in per capita income of people of country Explanation: Economic progress of a country is determined by increase in per capita income of people f that country.

'Quota' is - (1) tax levied on imports (2) imports of capital goods (3) limit on the quantity of imports (4) limit on the quantity of exports

Description : 'Quota' is - (1) tax levied on imports (2) imports of capital goods (3) limit on the quantity of imports (4) limit on the quantity of exports

Last Answer : (3) limit on the quantity of imports Explanation: An import quota is a limit on the quantity of a good that can be produced abroad and sold domestically. It is a type of ... production of a good, service, or activity, thus "protect" domestic production by restricting foreign competition.

All of the goods which are scarce and limited in supply are called - (1) Luxury goods (2) Expensive goods (3) Capital goods (4) Economic goods

Description : All of the goods which are scarce and limited in supply are called - (1) Luxury goods (2) Expensive goods (3) Capital goods (4) Economic goods

Last Answer : (4) Economic goods Explanation: In economics, a good is something that is intended to satisfy some wants or needs of a consumer and thus has economic utility. An economic good is a consumable item ... goods (such as air) are naturally in abundant supply and need no conscious effort to obtain them.

'Capital gains' refers to goods which - (1) serve as a source of raising further capital (2) help in the further production of goods (3) directly go into the satisfaction of human wants (4) find multiple uses

Description : 'Capital gains' refers to goods which - (1) serve as a source of raising further capital (2) help in the further production of goods (3) directly go into the satisfaction of human wants (4) find multiple uses

Last Answer : (2) help in the further production of goods Explanation: Capital goods are goods that are used in producing other goods, rather than being bought by consumers. They are tangible assets such as ... uses to produce goods or services in order to produce consumer goods and goods for other businesses.

When a Bank provides a loan for purchase of white goods, it is categorised as _____________ A. Consumption loan B. White Goods loan C. Consumer Durable loan D. Working Capital

Description : When a Bank provides a loan for purchase of white goods, it is categorised as _____________ A. Consumption loan B. White Goods loan C. Consumer Durable loan D. Working Capital

Last Answer : C. Consumer Durable loan Explanation: Consumer Durable loan is a finance option for purchase of (White Goods) household items like Washing Machines, Refrigerators, AC, LED, LCD, Microwaves etc.

Capital goods are the goods which are 1. consumed directly 2. durable goods 3. used for further production 4. both 1 & 2 5. none of thes

Description : Capital goods are the goods which are 1. consumed directly 2. durable goods 3. used for further production 4. both 1 & 2 5. none of thes

Last Answer : used for further production

Items that are purchased routinely, do not become part of the final physical product, and are treated like expense items rather than capital goods are called 1. raw materials 2. major equipment 3. accessory equipment 4. component part 5. process materials

Description : Items that are purchased routinely, do not become part of the final physical product, and are treated like expense items rather than capital goods are called 1. raw materials 2. major equipment 3. accessory equipment 4. component part 5. process materials

Last Answer : accessory equipment

"Capitalism" refers to: a. the use of markets b. government ownership of capital goods c. private ownership of capital goods d. private ownership of homes & cars

Description : "Capitalism" refers to: a. the use of markets b. government ownership of capital goods c. private ownership of capital goods d. private ownership of homes & cars

Last Answer : c. private ownership of capital goods

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

Which of the following is necessary for a natural monopoly? a. economies of scale b. a high proportion of the total cost is the cost of capital goods c. the market is very small d. all of the above

Description : Which of the following is necessary for a natural monopoly? a. economies of scale b. a high proportion of the total cost is the cost of capital goods c. the market is very small d. all of the above

Last Answer : d. all of the above

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

Pick out the wrong statement. (A) Gross revenue is that total amount of capital received as a result of the sale of goods or service (B) Net revenue is the total profit remaining after deducting all costs excluding taxes (C) The ratio of immediately available cash to the total current liabilities is known as the cash ratio (D) Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

Description : Pick out the wrong statement. (A) Gross revenue is that total amount of capital received as a result of the sale of goods or service (B) Net revenue is the total profit remaining ... indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

Last Answer : (C) Working capital turnover ratio = sales/net working capital

What is CGST? (A) Center Goods and Service Tax (B) Capital Goods and Service Tax (C) Capacity Goods and Service Tax (D) Central Goods and Service Tax

Description : What is CGST? (A) Center Goods and Service Tax (B) Capital Goods and Service Tax (C) Capacity Goods and Service Tax (D) Central Goods and Service Tax

Last Answer : (D) Central Goods and Service Tax

Value of goods withdrawn by the proprietor for his personal use should be credited to ____ a) Capital A/c b) Sales A/c c) Drawings A/c d) Purchases A/c

Description : Value of goods withdrawn by the proprietor for his personal use should be credited to ____ a) Capital A/c b) Sales A/c c) Drawings A/c d) Purchases A/c

Last Answer : d) Purchases A/c

The expanded production of fertilizers, textiles & buildings require some A. power production B. domestic production of the necessary capital goods C. economical growth D. none of these

Description : The expanded production of fertilizers, textiles & buildings require some A. power production B. domestic production of the necessary capital goods C. economical growth D. none of these

Last Answer : B. domestic production of the necessary capital goods

In which duration, considerable import substitution has taken place in many important areas in capital goods, organic chemicals ? A. two decades B. three decades C. four decades (last) D. five decades

Description : In which duration, considerable import substitution has taken place in many important areas in capital goods, organic chemicals ? A. two decades B. three decades C. four decades (last) D. five decades

Last Answer : C. four decades (last)

Items that are purchased routinely, do not become part of the final physical product, and are treated like expense items rather than capital goods are called A)raw materials. B)major equipment. C)accessory equipment. D)component parts. E)process materials.

Description : Items that are purchased routinely, do not become part of the final physical product, and are treated like expense items rather than capital goods are called A)raw materials. B)major equipment. C)accessory equipment. D)component parts. E)process materials.

Last Answer : C)accessory equipment.

There is more need of working capital in business where demand is to be seasonal. What out of the following is the cause? a. Capital remains stuck up for a long time in the raw material b. Capital remains stuck up for a long time in the manufactured goods. c. Both of these d. More machines are needed

Description : There is more need of working capital in business where demand is to be seasonal. What out of the following is the cause? a. Capital remains stuck up for a long time in the raw material b. Capital ... stuck up for a long time in the manufactured goods. c. Both of these d. More machines are needed

Last Answer : c. Both of these

GDP is defined as (a) The market value of all goods and services produced in the domestic economy during the year ; (b) Current value of all the capital goods produced in the country. ; (c) Sum of goods and services exported during the year. ; (d) All the capital goods and consumable goods produced and sold during the year

Description : GDP is defined as (a) The market value of all goods and services produced in the domestic economy during the year ; (b) Current value of all the capital goods produced in the country. ; (c) ... during the year. ; (d) All the capital goods and consumable goods produced and sold during the year

Last Answer : (a) The market value of all goods and services produced in the domestic economy during the year ; 

Stock of both man made goods as well as natural resources like capital is called – (a) National wealth ; (b) National stock ; (c) No less no gain level ; (d) All the three

Description : Stock of both man made goods as well as natural resources like capital is called – (a) National wealth ; (b) National stock ; (c) No less no gain level ; (d) All the three

Last Answer :  (b) National stock ;