Introduction. Way: By minimising the wastage of diesel. The AO held that lease of land for 90 years conferred a benefit of enduring nature to the assessee, particularly in the light of the definition of the expression “immovable property” furnished in section 269UA(d)(i) and, consequently, it was in the nature of capital expenditure. Fixed capital. 111. risk-indifferent. The protection of proprietary information of commercial value C. ADVERTISEMENTS: Q.2. TYBCOM SEM 5 Business Economics III - MCQ TYBCOM - SEM 5 - 2014 Exams Business Economics III Important MCQ list ... 3 State Trur or False: External debt creates more burden than internal debt. A leader B. A. 7.2%. Multiple Choice Questions. Practice Multiple Choice Chapter 1—Ten Principles of Economics Q.2 Define Tax. (iv) Study programmes for adults. C. Process Layout. c. budgeted income statement. If it creates an asset or reduces a liability, it is categorised as capital expenditure. there will be an increased production of capital goods. Solution: Issued capital is taken up by the general public. Ans. Sources of human capital formation. 2. An expenditure that neither creates assets nor reduces a liability is categorised as revenue expenditure. The aggregate expenditure is one of the methods that is used to calculate the total sum of all the economic activities in an economy, also known as the gross domestic product (GDP). ANSWER: D 29. This classification is also known as functional classification. Consider the following statements and identify the right ones. Current capital. The aggregate expenditure determines the total amount that firms and households plan to spend on goods and services at each level of income. Gordon model. the cost of production of capital goods will fall. i. 13.2%. In which workers become more knowledgeable about the best ay to accomplish a task as they do the task. A. risk-adverse. 5. 6%. Incurred to acquire fixed assets. TALLY 9.0 MULTIPLE CHOICE QUESTIONS 1. This creates a gulf between the revenue and expenditure. Explain the canons of taxation. A manager C. A professional D. An entrepreneur ANSWER: D 2. wL0FCDQ:UHTgncn. What are factor incomes? Lark Corp.’s direct materials budget shows total cost of direct materials purchases for January $250,000, February $300,000 and March $350,000. Meaning: Capital expenditure is the money spent by the government on the development of machinery, equipment, building, health facilities, education, etc. the cost of production of capital goods will fall. B. Question 8. Expenditure c. Liabilities d. Assets 17. It is a revenue expenditure as it neither creates any asset nor reduces any liability of the government. Whereas capital expenditure includes all capital transactions. But there are much disagreement among various Income inelastic B. Instable C. Interest elastic D. Income elastic 86. Answer. Such capital can be offered to the public at a later date. These capital payments consist of capital expenditure on acquisition of assets like land, buildings, machinery, equipment etc. 156. The asset’s market risk premium is . Borrowing is income of the government which creates liability because the government has to repay the borrowings with interest. An individual who starts, creates and manages a new business can be called _____. In _____, machines and equipments are arranged in the order or sequence in which they are to be used for manufacturing the product A. This amount was, as a result not allowed as deduction. Q.1. TEST 1) If a person’s required return decreases for an increase in risk, that person is said to be risk-seeking. The risk-free rate of return is 6%, while the return on the market portfolio of assets is 12%. It is the ratio of a country's import expenditure … The entrepreneur was distinguished from capital provider in: a) Middle ages b) 17th century c) 18th century d) 19th and 20th century Answer: c … All Unit MCQ’s … capital asset pricing model . Capital expenditure does not reduce the profit of the concern. Group bonus is divided among the workers of the group in proportion to the _____by them a) Hours worked b) Rate per hour c) Basic wage earned 190. ; It also includes the expenditure incurred on acquiring fixed assets like land and investment by the government that gives profits or dividend in future. It is not necessary for the company to call for the entire amount on … It is the amount of export earnings needed to meet a country's annual external debt. Answer: True. 41) When a commercial bank creates credit, its immediate effect is that it raises (A) The exchange rate (B) The interest rate (C) The money supply ... Capital expenditure is incurred on _____. Reason: This expenditure creates an asset for the railway and government. Expenditure incurred by a publisher for acquiring copyrights is a– (A) capital expenditure (B) revenue expenditure (C) deferred revenue expenditure (D) None of the above (Ans : A) 112. Trademarks relate to _____. Creates future benefits. This is the basis of classification between revenue expenditure and capital expenditure. 11 per unit The expenditure of the government has increased due to the emergence of welfare state. Not profitable B. A very senior citizen shall be that individual for purpose of Income Tax whose age is More than following– HRM multiple choice questions and answers on HRM MCQ questions quiz on HRM objectives questions. A monopolist is a price (a) Acceptor (b) Taker (c) Giver (d) Maker. Revenue Expenditure and Capital Expenditure of India! _____scheme creates team spirit which in turn leads to high output a) Time rate b) Piece rate c) Group bonus 191. […] Cash payments are 60% in the month of purchase and 40% in the following month. Value Added is the excess of value of output over that of intermediate consumption. 10%. Which one of the following is NOT true about Capital Expenditure? B. 8) Asset Y has a beta of 1.2. Incurred to increase the economic life of existing fixed assets. (v) Migration and expenditure … (iii) On the job training. Product Layout. Factory Layout. MEC for a capital good was found out to be 10% and the market rate of interest is 9%, then the investment is A. the people will save more and interest rate will all. If it creates an asset or reduces a liability, it is categorised as capital expenditure. Download. Investments in shares and loans and advances granted by the central government are part of this. A. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof. Answer: (d) Maker Explanation: A monopoly firm is a price maker or price setter because it is the sole producer of a product.This is in contrast to a competitive firm which is a price taker with zero market power. Hence, all the options are correct. C. Seed capital. In the given diagram, speculative demand for money curve l (r) has four regions R1, R2, R3 and R4. 29. Equilibrium exchange rate occurs when supply of and demand for foreign exchange are equal to each other. there will be an increased production of capital goods. Reduce the profit of the concern . Practice Multiple Choice Chapter 1—Ten Principles of Economics. (a) Infrastructure (b) Highways (c) Irrigation projects (d) All the above. In the given diagram, speculative demand for money curve l (r) has four regions R1, R2, R3 and R4. 7) Borrowings:When government revenue is not sufficient to meet the public expenditure government borrows either from internal or external sources. The term working capital is commonly used for the capital required for day-to-day working in a business concern, such as for purchasing raw material, for meeting day-to-day expenditure on salaries, wages, rents rates, advertising etc. Define the concept of value added. mYxvcR1:40hGGyz. On the job experience creates "learning by doing". Question 2. 10 per unit. b. capital expenditure budget. MCQ Questions for Class 12 Economics Chapter 10 Determination of Income and Employment with Answers December 17, 2020 by Kishen Leave a Comment Determination of Income and Employment Class 12 MCQs Questions with Answers Expenditure made on the development of a railway line is a capital expenditure. This is a descriptive chapter on government budget of Indian economy, wherein its objectives, importance, types, components, budget deficits and its types (Revenue, Fiscal, Primary Deficit) and their implications are studied. For achieving economic stability, the objective of low interest cost will have to be sacrificed Comparison to GDP. Note: As per CBSE guidelines, no marks will be given if reason to the answer is not explained. 1. Which of the following best describes Debt Service Coverage Ratio? Capital account is classified into 3 parts in India- private, banking and official capital. It is that part of subscribed capital, which is called by the company to pay on shares allotted. the people will save more and interest rate will all. human capital, the accumulated skills and knowledge people possess comes from both formal education and training and from on the job experience. Capital Expenditure. Autonomous investment is A. A. d. budgeted balance sheet. (ii) Expenditure on health. ADVERTISEMENTS: National Income and Related Aggregates! Tally package is developed by ... a. Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. Ans. D. Combined Layout. An expenditure that neither creates assets nor reduces a liability is categorised as revenue expenditure. Human capital formation is the process of adding to the stock of human capital over a period of time. (i) Expenditure on education. A double entry system of record of all economic transactions between the residents of a country and rest of the world is called balance of trade Income b. Government Budget and the Economy – CBSE Notes for Class 12 Macro Economics. Qno.9 Consider the following: Beginning inventory 10 units @ Rs. D. Venture capital. Practice and knowledge acquired through experience B. 84. Who postulated the law Supply creates its own demand (A) Keynes (B) J B say (C) Marshall (D) Pigou 85. First purchase 35 units @ Rs. 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