Kabir bought a machine for ₹ 25,000 on which he spent ₹ 5,000 for carriage and freight, ₹ 1,000 for brogerage of the middleman, ₹ 3,500 for installation and ₹ 500 for an iron pad
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From the following information, Calculate Debt to Equity Ratio:
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Trial Balance of a bookkeeper shows an excess of debits over credits by ₹ 261. This difference is placed in a Suspense Account to facilitate books closure
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On 31st March, 2023, the Cash Book of a Merchant showed a bank overdraft of ₹ 1,72,985. On comparing the Cash Book with the Bank Pass Book the following discrepancies were noted
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Subsidies to the producers should be treated as transfer payments. Defend or refute the given statement with valid reason.
The given statement is defended The subsidy is a transfer payment. The subsidy is the financial assistance provided by the government to producers to fulfill its social welfare objectives. The government does not get anything in consideration for the same.…
Payment of fees to a lawyer engaged by a firm included/excluded in National Income.
No, It is an intermediate expenditure for the firm because it involves the purchase of services by one production unit (firm) from another production unit (lawyer). So, it is deducted from the value of the output of the firm to…
If Nominal GNP is ₹ 1,200 and Real GNP is ₹ 500, then GNP Deflator will be 200
False, GNP would be ₹ 240 Solution:- GNP Deflator = Nominal GNP/Real GNP × 100 GNP Deflator = 1,200/500 × 100 GNP Deflator = ₹ 240
Increase in Real GDP always indicates that welfare of people is rising
False, With increase in real GDP, welfare of people may not rise if there is inequality in the distribution of GDP or due to negative externalities. Explanation:- Negative externalities such as air and sound pollution results in health hazards. If…
National Income is sum of all the transfer income generated in an economy.
False, National Income is sum total of all factor incomes earned by normal residents, anywhere in the world. transfer income does not add the current flow of goods and services, thus are not included in the national income.
Expenditure on electricity by factory is an intermediate cost for the factory
True, As electricity is used for further production, it is a part of the intermediate cost.