The Government: Budget and the Economy Test

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The Government: Budget and the Economy Test - 19

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Weekly Quiz Competition

Question 1
1 / -0

A receipt in substitution of a source of income is a ____________.

A
Deferred revenue receipts

B
Revenue receipts

C
Capital receipts

D
None of the above

Solution

An amount received in replacement of a source of income is a capital receipt, for example compensation received for termination of services. In this receipt receiver is getting lumpsum payment and revenue receipts are ceased thereafter and hence, it is a capital receipt.
Question 2
1 / -0

Which of the following is/are not capital receipt?

A
Receipts from sales

B
Fees received for services

C
Interest on investment

D
All of the above
Question 3
1 / -0

______ appear in the profit and loss account and are available for distribution as profit, or for creating reserves and funds, for being used in the business.

A
Capital profit

B
Revenue Profits

C
Revenue loss

D
All of the above

Solution

Revenue profit is the difference between revenue incomes and revenue expenses. It is earned in the ordinary course of the business. It results from the sale of goods and services at a price more than their cost price. Revenue profit is he outcome of regular transactions of the business. It is shown as gross profit and net profit in trading and profit and loss accounts. It is available for the distribution to shareholders as dividend or for creating reserve and fund for various purposes. It shows the efficiency of the business . In fact, earning revenue profit is the main objective of every business.
Question 4
1 / -0

The ultimate responsibility of framing and executing economic policies is that of ________.

A
govt

B
RBI

C
state govt

D
none of above

Solution

Economic policies refers to those policies which are required for efficient functioning of an economy in proper law and order. These policies are framed and implemented by the government of the country in order to run the economy effectively. Therefore, the ultimate responsibility of framing and executing economic policies is that of the government of the country.
Question 5
1 / -0

Which of the following is/are capital receipt?

A
Contributions into the business by the proprietor

B
Loans taken from banks

C
Amount received on issue of share capital

D
All of the above

Solution

Capital receipts are a non-recurring incoming cash flow into your business, which leads to the creation of a liability (a debt to be paid in the future) and a decrease in company assets (resources that lead to capital gain).
Therefore, Contributions into the business by the proprietor, loans taken from banks and amount received on issue of share capital are capital receipts.
Question 6
1 / -0

_______ are earned in the ordinary course of business.

A
Capital profit

B
Revenue profits

C
Capital loss

D
All of the above

Solution

Revenue profit is the difference between revenue incomes and revenue expenses. It is earned in the ordinary course of the business. It results from the sale of goods and services at a price more than their cost price. Revenue profit is he outcome of regular transactions of the business. It is shown as gross profit and net profit in trading and profit and loss accounts. It is available for the distribution to shareholders as dividend or for creating reserve and fund for various purposes. It shows the efficiency of the business . In fact, earning revenue profit is the main objective of every business.
Question 7
1 / -0

The share of net invisible earnings in financing trade deficit ______ from __________ n sixth plan to ______ in seventh plan.

A
declined, 6396, 29.5%

B
increased, 29.5%, 63%

C
declined 67%, 63%

D
increased 63%, 85%
Question 8
1 / -0

_____________ is not a revenue receipt.

A
Lump sum payment received in installment

B
Amount received by the sale of goods

C
Both (A) & (B)

D
All of the above

Solution

Receipts which are recurring (received again and again) by nature and which are available for meeting all day to day expenses (revenue expenditure) of a business concern are known as "Revenue receipts", e.g. sale proceeds of goods, interest received, commission received, rent received, dividend received etc.
Capital receipts are a non-recurring incoming cash flow into your business, which leads to the creation of a liability (a debt to be paid in the future) and a decrease in company assets (resources that lead to capital gain).
there would be no effect on the nature of receipt by payments received either lumpsum or installment.
Therefore, lump sum payment received in installment is NOT a revenue receipt.
Question 9
1 / -0

Fiscal responsibility and budget management Act aims at reducing gross fiscal deficit by _______ $$\%$$ of GDP in each financial year.

A
$$0.5\%$$

B
$$1\%$$

C
$$1.5\%$$

D
$$2\%$$
Question 10
1 / -0

The large and sustained current account deficit in BOP had to be financed by ______.

A
loans from various sources

B
commercial borrowings

C
inflow of funds from NRIs

D
all of above

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Re-Attempt Weekly Quiz Competition

The Government: Budget and the Economy Test - 19

Result

The Government: Budget and the Economy Test - 19

Score

-

Rank

-

SHARING IS CARING

Question 1

Deferred revenue receipts

Revenue receipts

Capital receipts

None of the above

Solution

Question 2

Receipts from sales

Fees received for services

Interest on investment

All of the above

Question 3

Capital profit

Revenue Profits

Revenue loss

All of the above

Solution

Question 4

govt

RBI

state govt

none of above

Solution

Question 5

Contributions into the business by the proprietor

Loans taken from banks

Amount received on issue of share capital

All of the above

Solution

Question 6

Capital profit

Revenue profits

Capital loss

All of the above

Solution

Question 7

declined, 6396, 29.5%

increased, 29.5%, 63%

declined 67%, 63%

increased 63%, 85%

Question 8

Lump sum payment received in installment

Amount received by the sale of goods

Both (A) & (B)

All of the above

Solution

Question 9

$$0.5\%$$

$$1\%$$

$$1.5\%$$

$$2\%$$

Question 10

loans from various sources

commercial borrowings

inflow of funds from NRIs

all of above

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My Perfomance

Score

-

Rank

-

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