Account and Finance Practice Question and Answer

Q:

Which of the following would not constitute an economic activity in Economics?

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  • 1
    A teacher teaching students in his college
    Correct
    Wrong
  • 2
    A teacher teaching students in a coaching institute
    Correct
    Wrong
  • 3
    A teacher teaching his own daughter at home
    Correct
    Wrong
  • 4
    A teacher teaching students under Sarva Shiksha Abhiyan Scheme
    Correct
    Wrong
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Answer : 3. "A teacher teaching his own daughter at home"
Explanation :

A teacher who is teaching his own daughter is not a part of economic activity as the imputed value of such activities can not be calculated.

Q:

When increase in income the increase in ratio between income & expenditure changes–

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  • 1
    In same ratio
    Correct
    Wrong
  • 2
    Ratio less than 1
    Correct
    Wrong
  • 3
    Ratio more than one
    Correct
    Wrong
  • 4
    None
    Correct
    Wrong
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Answer : 2. "Ratio less than 1"
Explanation :

Expl:- When increase in income the increase in ratio between income & expenditure changes Ratio less than 1

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 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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