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Economics Questions Answers
Which of the following statements is not correct relating to consumerism?
Consumerism is a manifestation of the failure of the business to guarantee and ensure consumer legitimate rights
The government does not have any role in consumer protection as it is the part of business organisations alone
The consumers should accept consumerism as a means of asserting and enjoying their rights
Consumerism evolution is not a set-back for marketing but rather points to the next stage in the evolution of enlightened marketing
The government does not have any role in consumer protection as it is the part of business organisations alone
Which one of the following is not covered in the approach adopted by 'Niti Aayog'?
Five year planning approach
Three year action agenda
Seven year strategy
Fifteen year vision
Five year planning approach
Assertion(A): Personal transactions of the owners of the business are not recorded in the books.
Reasoning (R) : According to the business entity concept, each business enterprise is considered as an accounting unit seqarate from owners.
Both (A) and (R) are correct and (R) is the correct explanation of (A).
Both (A) and (R) are correct but (R) is not the correct explanation of (A)
(A) is correct but (R) is not correct
(R) is wrong but (A) is correct
Both (A) and (R) are correct and (R) is the correct explanation of (A).
Which one of the following is not an example of 'financing activities' with reference to cash flow statement?
Repayment of Bank Loan
Interest on debentures/Dividend paid
Cash proceeds from public deposits
Sale of fixed assets
Sale of fixed assets
Which one of the following statements is true about estimated costs and standard costs?
Standard costs are based on scientific analysis and engineering studies while estimated costs are based on historical basis
Standard cost emphasis is on 'what cost will be' while estimated cost emphasis is on 'what cost should be'
Standard costs are more frequently revised compared to estimated cost
Estimated costs are more stable than standard costs
Standard costs are based on scientific analysis and engineering studies while estimated costs are based on historical basis
Which one of the following statements is not true?
An expenditure intended to benefit current year is revenue expenditure
Amount paid for acquiring goodwill is capital expenditure
Wages paid for installation of a new machine is usually debited to wages account
Revenue expenditure is not intended to benefit future period
Wages paid for installation of a new machine is usually debited to wages account
X Lts. forfeited 20 shares of ₹ 10 each. ₹ 8 called up, on which John had paid application and allotment money of ₹ 5 per share, of these, 15 shares were reissued to Parker as fully paid up for ₹ 6 per share. What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account?
NIL
₹ 5
₹ 25
₹ 100
₹ 25
Total Amount forfeited = 20 x ₹ 5 = ₹ 100
Amount transferred to Capital Reserve Account = 15 x ₹ 5 = ₹ 75
Amount left in forfeited Account = ₹ 25
Assertion (A) : A high operating, ratio indicates a favourable position.
Reasoning (R) : A high operating ratio leaves a high margin to meet non operating expenses.
(A) and (R) both are correct and (R) correctly explains (A)
(A) and (R) are correct but (R) does not explains (A)
Both (A) and (R) are incorrect
(A) is correct but (R) is incorrect
Both (A) and (R) are incorrect
The following are the two statements regarding concept of profit. Indicate the correct code of the statements being correct or incorrect—
Statements:
I. Accounting profit is a surplus of total revenue over and above all paid-out costs, including both manufacturing and overhead expenses.
II. Economic or pure profit is a residual left after all contractual costs have been met, including the transfer costs of management, insurable risks, depreciation and payments to shareholders sufficient to maintain investment at its current level.
Both the statements are correct
Both the statements are incorrect
Statement (I) is correct while Statement (II) is incorrect
Statement (I) is incorrect while Statement (II) correct
Both the statements are correct
Which one of the following is not the basic property of indifference curves?
Indifference curves have a negative slope
Indifference curves of imperfect substitutes are concave to the origin
Indifference curves do not intersect nor are they tangent to one another
Upper indifference curves indicate higher level of satisfaction
Indifference curves of imperfect substitutes are concave to the origin