Miscellaneous In Commerce - Study Mode

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[#396] Match the following methods of capital budgeting with respective formulas: Method Formulas a. ARR method 1. Present Value of Cash Inflows - Present Value of Cash Outflows b. Pay back period Method 2. Present Value of Cash Inflows ÷ Present Value of Cash Outflows c. NPV Method 3. Average Income ÷ Average Investment d. Probability Index 4. Investment ÷ Annual Cash Inflows Choose the correct option from those given below

(A) a-3, b-1, c-4, d-2

(B) a-3, b-4, c-1, d-2

(C) a-1, b-2, c-3, d-4

(D) a-1, b-4, c-2, d-3

Correct Answer

(B) a-3, b-4, c-1, d-2

[#397] Which of the following statements is correct in regards to economic policy? (1) Fiscal policy is enacted by a Central Government. (2) Monetary policy is enacted by Central bank.

(A) Only (1)

(B) Only (2)

(C) Both (1) and (2)

(D) Neither (1) nor (2)

Correct Answer

(C) Both (1) and (2)

[#398] Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000 Manufacturing overheads: Rs. 30,000

(A) Rs. 1,80,000

(B) Rs. 2,00,000

(C) Rs. 1,70,000

(D) Rs. 2,10,000

Correct Answer

(C) Rs. 1,70,000

[#399] Complete consolidation of business can be achieved through:

(A) Combination Trust

(B) Interlocking Directorships

(C) Amalgamation

(D) All of these

Correct Answer

(C) Amalgamation

[#400] Opening stock + . . . . . . . . + Direct Expenses (Carriage on Raw material) - Closing Stock = . . . . . . . .

(A) Sales, Purchases

(B) Sales, Sales return

(C) Purchases, Cost of goods produced

(D) Purchases, Cost of goods sold

Correct Answer

(C) Purchases, Cost of goods produced