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Economics Questions Answers

Q61 :

Which of the following statements is not correct relating to consumerism?

A
  

Consumerism is a manifestation of the failure of the business to guarantee and ensure consumer legitimate rights

B
  

The government does not have any role in consumer protection as it is the part of business organisations alone

C
  

The consumers should accept consumerism as a means of asserting and enjoying their rights

D
  

Consumerism evolution is not a set-back for marketing but rather points to the next stage in the evolution of enlightened marketing

View Answer
Correct Answer: B

The government does not have any role in consumer protection as it is the part of business organisations alone

No Description Available
Q62 :

Which one of the following is not covered in the approach adopted by 'Niti Aayog'?

A
  

Five year planning approach

B
  

Three year action agenda

C
  

Seven year strategy

D
  

Fifteen year vision

View Answer
Correct Answer: A

Five year planning approach

No Description Available
Q63 :

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.

A
  

Both (A) and (R) are correct and (R) is the correct explanation of (A).

B
  

Both (A) and (R) are correct but (R) is not the correct explanation of (A)

C
  

(A) is correct but (R) is not correct

D
  

(R) is wrong but (A) is correct

View Answer
Correct Answer: A

Both (A) and (R) are correct and (R) is the correct explanation of (A).

No Description Available
Q64 :

Which one of the following is not an example of 'financing activities' with reference to cash flow statement?

A
  

Repayment of Bank Loan

B
  

Interest on debentures/Dividend paid

C
  

Cash proceeds from public deposits

D
  

Sale of fixed assets

View Answer
Correct Answer: D

Sale of fixed assets

No Description Available
Q65 :

Which one of the following statements is true about estimated costs and standard costs?

A
  

Standard costs are based on scientific analysis and engineering studies while estimated costs are based on historical basis

B
  

Standard cost emphasis is on 'what cost will be' while estimated cost emphasis is on 'what cost should be'

C
  

Standard costs are more frequently revised compared to estimated cost

D
  

Estimated costs are more stable than standard costs

View Answer
Correct Answer: A

Standard costs are based on scientific analysis and engineering studies while estimated costs are based on historical basis

No Description Available
Q66 :

Which one of the following statements is not true?

A
  

An expenditure intended to benefit current year is revenue expenditure

B
  

Amount paid for acquiring goodwill is capital expenditure

C
  

Wages paid for installation of a new machine is usually debited to wages account

D
  

Revenue expenditure is not intended to benefit future period

View Answer
Correct Answer: C

Wages paid for installation of a new machine is usually debited to wages account

No Description Available
Q67 :

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?

A
  

NIL

B
  

₹ 5

C
  

₹ 25

D
  

₹ 100

View Answer
Correct Answer: C

₹ 25

Description:

Total Amount forfeited = 20 x ₹ 5 = ₹ 100

Amount transferred to Capital Reserve Account = 15 x ₹ 5 = ₹ 75

Amount left in forfeited Account = ₹ 25

Q68 :

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
  

(A) and (R) both are correct and (R) correctly explains (A)

B
  

(A) and (R) are correct but (R) does not explains (A)

C
  

Both (A) and (R) are incorrect

D
  

(A) is correct but (R) is incorrect

View Answer
Correct Answer: C

Both (A) and (R) are incorrect

No Description Available
Q69 :

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.

A
  

Both the statements are correct

B
  

Both the statements are incorrect

C
  

Statement (I) is correct while Statement (II) is incorrect

D
  

Statement (I) is incorrect while Statement (II) correct

View Answer
Correct Answer: A

Both the statements are correct

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Q70 :

Which one of the following is not the basic property of indifference curves?

A
  

Indifference curves have a negative slope

B
  

Indifference curves of imperfect substitutes are concave to the origin

C
  

Indifference curves do not intersect nor are they tangent to one another

D
  

Upper indifference curves indicate higher level of satisfaction

View Answer
Correct Answer: B

Indifference curves of imperfect substitutes are concave to the origin

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