Account and Finance Questions Practice Question and Answer
8 Q: Which of the following represents the saving of the Private Corporate Sector?
526 0651157c956a7b2508cb0dc7d
651157c956a7b2508cb0dc7d- 1Undistributed profitstrue
- 2Excess of income over expenditurefalse
- 3Dividends paid to shareholdersfalse
- 4Total profit of a companyfalse
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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–
519 0651291449c491b8125bcbfb3
651291449c491b8125bcbfb3- 1Employmentfalse
- 2Savingsfalse
- 3Incometrue
- 4Consumptionfalse
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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–
509 06512a7a7af64a2609c622020
6512a7a7af64a2609c622020- 1Total investment over total savingsfalse
- 2Changes in methods of productionfalse
- 3Changes in the form of business organisationfalse
- 4Total receipts over total expenditure.true
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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-
508 06511585710a18f5082fb1e12
6511585710a18f5082fb1e12- 1Domestic Income of Indiafalse
- 2Income earned from abroadtrue
- 3Net domestic product of Indiafalse
- 4Grave domestic product of India.false
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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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6511597ccb11fc5036e368e9- 17false
- 24true
- 38false
- 41false
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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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6511558410a18f5082fb144e- 1Compulsory deposits imposed on income tax payersfalse
- 2Provident fund contribution of private sector employeesfalse
- 3Reduction of consumption consequent to a rise in pricetrue
- 4Taxes on individual income and wealthfalse
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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-
488 06511562110a18f5082fb17d4
6511562110a18f5082fb17d4- 1Consumption of fined capitalfalse
- 2Final consumption Expenditurefalse
- 3Intermediate Consumptiontrue
- 4Fined Capitalfalse
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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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65115a30af64a2609c5e08a4- 1Production Methodtrue
- 2Income Methodfalse
- 3Expenditure Methodfalse
- 4Consumption Methodfalse
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Answer : 1. "Production Method "
Explanation :
Under the consideration of India economy, census of agriculture, is done by production method.

