Account and Finance Questions Practice Question and Answer

Q:

Which of the following represents the saving of the Private Corporate Sector?

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  • 1
    Undistributed profits
    Correct
    Wrong
  • 2
    Excess of income over expenditure
    Correct
    Wrong
  • 3
    Dividends paid to shareholders
    Correct
    Wrong
  • 4
    Total profit of a company
    Correct
    Wrong
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Answer : 1. "Undistributed profits"
Explanation :

For private corporate sector, retained profits adjusted for non operating surplus/deficit is considered as net saving

Q:

The Effect of ‘Investment Multiplier’ is shows on–

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  • 1
    Employment
    Correct
    Wrong
  • 2
    Savings
    Correct
    Wrong
  • 3
    Income
    Correct
    Wrong
  • 4
    Consumption
    Correct
    Wrong
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Answer : 3. "Income "
Explanation :

Investment multiplier means those elements by which investment is increased and due to increasing of investment. There is increase in income and production. So effect of ‘Investment Multiplier’, according to above options is shown on income

Q:

Gross Profit means–

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  • 1
    Total investment over total savings
    Correct
    Wrong
  • 2
    Changes in methods of production
    Correct
    Wrong
  • 3
    Changes in the form of business organisation
    Correct
    Wrong
  • 4
    Total receipts over total expenditure.
    Correct
    Wrong
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Answer : 4. "Total receipts over total expenditure."
Explanation :

Gross profit = Net sales (total receipts) - Cost of goods  sold (total expenditure)

In other words it is the total receipt over total cost.

Q:

The Income of Indians working abroad is-

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  • 1
    Domestic Income of India
    Correct
    Wrong
  • 2
    Income earned from abroad
    Correct
    Wrong
  • 3
    Net domestic product of India
    Correct
    Wrong
  • 4
    Grave domestic product of India.
    Correct
    Wrong
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Answer : 2. "Income earned from abroad"
Explanation :

Expl:- NDPmp + NFIA = NNPmp

GDPmp + NFIA + GNPmp

Q:

GDP is what percent of Fiscal deficit?

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  • 1
    7
    Correct
    Wrong
  • 2
    4
    Correct
    Wrong
  • 3
    8
    Correct
    Wrong
  • 4
    1
    Correct
    Wrong
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Answer : 2. "4"
Explanation :

Expl:- In budget 2014-15 the percent of G.D.P was 4.1 of fiscal deficit. But in 2015-16 its percent becomes 3.9% of fiscal deficit.

Q:

Forced saving refers to-

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  • 1
    Compulsory deposits imposed on income tax payers
    Correct
    Wrong
  • 2
    Provident fund contribution of private sector employees
    Correct
    Wrong
  • 3
    Reduction of consumption consequent to a rise in price
    Correct
    Wrong
  • 4
    Taxes on individual income and wealth
    Correct
    Wrong
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Answer : 3. "Reduction of consumption consequent to a rise in price"
Explanation :

According to Nobel Prize winner Frederick Wan, Forced Saving in an economic situation in which consumer spend less than their disposable income, not because they want to save but because the goods they seek are not avoidable or because goods are too expensive.

Q:

The Expenditure on advertisement and public relation by an enterprise is a part of its-

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  • 1
    Consumption of fined capital
    Correct
    Wrong
  • 2
    Final consumption Expenditure
    Correct
    Wrong
  • 3
    Intermediate Consumption
    Correct
    Wrong
  • 4
    Fined Capital
    Correct
    Wrong
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Answer : 3. "Intermediate Consumption"
Explanation :

The Advertisement and public relations of selling expenses are part of intermediate consumption.

Q:

The Census of Indian agriculture is done by–

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  • 1
    Production Method
    Correct
    Wrong
  • 2
    Income Method
    Correct
    Wrong
  • 3
    Expenditure Method
    Correct
    Wrong
  • 4
    Consumption Method
    Correct
    Wrong
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Answer : 1. "Production Method "
Explanation :

Under the consideration of India economy, census of agriculture, is done by production method.

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