Questions and answers for exam Preparation

MCQs

Total Questions : 398 | Page 40 of 40 pages

Question 391. ____________ taxes are based on gross earnings ?

Property
Excise
Income
Capital gain

Discuss Question

Answer: Option C. -> Income
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 392. If an amount R is paid at the end of every year for ‘n’ years, then the net present value of the annuity at an interest rate of i is _________________?

R [{(1 + i)n – 1}/ i ]
R [{(1 + i)n – 1}/ i (1 + i)n]
R(1 + i)n
R/(1 + i)n

Discuss Question

Answer: Option B. -> R [{(1 + i)n – 1}/ i (1 + i)n]
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 393. Pick out the wrong statement ?

Gross revenue is that total amount of capital received as a result of the sale of goods or service
Net revenue is the total profit remaining after deducting all costs excluding taxes
The ratio of immediately available cash to the total current liabilities is known as the cash ratio
Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit ove

Discuss Question

Answer: Option B. -> Net revenue is the total profit remaining after deducting all costs excluding taxes
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 394. A shareholder has ______________ say in the affairs of company management compared to a debenture holder ?

More
Less
Same
No

Discuss Question

Answer: Option A. -> More
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 395. Which of the following does not come under the sales expenses for a product of a chemical plant ?

Advertising
Warehousing
Legal fees
Customer service

Discuss Question

Answer: Option C. -> Legal fees
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 396. Pick out the correct statement ?

Difference between income and expense is termed as gross revenue
Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to date
Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the investment
Scrap value is the net amount of money obtainable from the sale of used property over and above any charges involved in its removal & sale

Discuss Question

Answer: Option B. -> Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to date
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 397. Pick out the wrong statement?

Gross margin = net income – net expenditure
Net sales realisation (NSR) = Gross sales – selling expenses
At breakeven point, NSR is more than the total production cost
Net profit = Gross margin – depreciation – interest

Discuss Question

Answer: Option C. -> At breakeven point, NSR is more than the total production cost
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 398. Pick out the wrong statement?

Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity)
Return on equity = profit after tax/net worth
Working capital turnover ratio = sales/net working capital
Total cost of production is more than net sales realisation (NSR) at breakeven point

Discuss Question

Answer: Option D. -> Total cost of production is more than net sales realisation (NSR) at breakeven point
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!