National Income Accounting Test

Result

National Income Accounting Test - 11

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Weekly Quiz Competition

Question 1
1 / -0

In small sector net value added is estimated by ________.

A
income method

B
expenditure method

C
production method

D
survey method
Question 2
1 / -0

Inventories are assets __________________.

A
Held for sale in the ordinary course of business

B
In the production process for such sale

C
In the form of material or supplied to be consumed in the production process or in the rendering of service

D
All of the above
Question 3
1 / -0

Mixed income refers to the income of: ______.

A
small enterprises

B
traders

C
self employed persons

D
all the three

Solution

Mixed income refers to the income of small enterprises, traders, self employed persons.
Mixed-income of self-employed refers to the incomes of the self-employed persons who use their own land, labour, capital, and entrepreneurship to produce various goods and services
Question 4
1 / -0

Which of these is not a feature of a Capitalist economy?

A
Right of private property

B
Social justice

C
Profit maximization

D
Consumer sovereighty
Question 5
1 / -0

If at the beginning and ending of the period, goods inventories are $$Rs. 400$$ and $$Rs. 700$$ respectively and cost of goods sold is $$Rs 3400$$. Then net purchases are __________.

A
$$Rs. 3700$$

B
$$Rs. 3400$$

C
$$Rs. 3100$$

D
$$Rs.3000$$
Question 6
1 / -0

Inventory is valued at _____________.

A
Cost price

B
Replacement price

C
Both (a) and (b) whichever is lower

D
Both (a) or (b) whichever is higher

Solution

Generally accepted accounting principles (GAAP) require that all inventory reserves be stated and valued using either the cost or the market value method, whichever is lower.
Therefore, C is the correct option.
Question 7
1 / -0

Which one of the following statements are correct?
(i) Inventory includes raw materials, finished goods and goods in process
(ii) Inventory is a part of the working capital
(iii) Inventory includes goods likely to be purchased in the coming months
Select the correct answer using the codes given below.

A
I, II and III

B
II and III

C
I and III

D
I and II

Solution

Inventory is current asset of the firm. It is basically a schedule of all materials held by the company for the purpose of production or sale in the near future.
The term inventory includes all types of stocks – raw material, work progress, finished goods, tools, spare parts etc.
Question 8
1 / -0

Given Real GDP 9% and rate of inflation 2.25%, the norminal GDP will be ___.

A
9%

B
11.25%

C
6.75%

D
8%
Question 9
1 / -0

Accounting policy for inventories of an enterprise is, 'Inventories are valued at the lower of cost or the net realizable value.' Which accounting principle is followed by the enterprise?

A
Materiality

B
Prudence

C
Substance over form

D
Matching

Solution

The valuation of inventory should be based on prudence concept of accounting. This concept states that if the net realizable value of inventory is lower than its original cost, then it should be valued at its net realizable value. On the contrary, inventory should be shown at cost price. This means inventory should be valued at lower of cost or net realizable value.
Question 10
1 / -0

Cost of inventories includes ___________________.

A
Direct Material $$+$$ Direct Expenses

B
Direct Labour $$+$$ Direct Expenses

C
All cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition

D
Direct material only

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Re-Attempt Weekly Quiz Competition

National Income Accounting Test - 11

Result

National Income Accounting Test - 11

Score

-

Rank

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SHARING IS CARING

Question 1

income method

expenditure method

production method

survey method

Question 2

Held for sale in the ordinary course of business

In the production process for such sale

In the form of material or supplied to be consumed in the production process or in the rendering of service

All of the above

Question 3

small enterprises

traders

self employed persons

all the three

Solution

Question 4

Right of private property

Social justice

Profit maximization

Consumer sovereighty

Question 5

$$Rs. 3700$$

$$Rs. 3400$$

$$Rs. 3100$$

$$Rs.3000$$

Question 6

Cost price

Replacement price

Both (a) and (b) whichever is lower

Both (a) or (b) whichever is higher

Solution

Question 7

I, II and III

II and III

I and III

I and II

Solution

Question 8

9%

11.25%

6.75%

8%

Question 9

Materiality

Prudence

Substance over form

Matching

Solution

Question 10

Direct Material $$+$$ Direct Expenses

Direct Labour $$+$$ Direct Expenses

All cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition

Direct material only

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