Author name: Administrator

170. The normal balance of capital account is

Credit balance
Debit balance
Cash balance
Neither debit nor credit balance
✅ The correct answer is A.
The normal balance of capital account is Credit balance. Normal balance is the side where the balance of the account is normally found. Asset accounts normally have debit balances, while liabilities and capital normally have credit balances. Income has a normal credit balance since it increases capital .

1828. Situation in which firm limits expenditures on capital is classified as

optimal rationing
capital rationing
marginal rationing
transaction rationing
✅ The correct answer is B.
Situation in which firm limits expenditures on capital is classified as capital rationing. Capital rationing is the process of putting restrictions on the projects that can be undertaken by the company or the capital that can be invested by the company.

171. The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as

Appreciation
Depreciation
Fluctuation
None of the above
✅ The correct answer is B.
The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the as set, is termed as Depreciation. Depreciation is any method of allocating such net cost to those periods in which the organization is expected to benefit from use of the asset. The asset is referred to as a depreciable asset.

1833. Identify the work of Irving Fisher

A Treatese on Money
Policy against Inflation
The Making of Index numbers
Monetary Theory
✅ The correct answer is C.
The Making of Index numbers is the work of Irving Fisher. Index numbers played an important role in his monetary theory, and his book The Making of Index Numbers has remained influential down to the present day. Fisher’s main intellectual rival was the Swedish economist Knut Wicksell.

1835. Stock in small companies, owned by few people but not actively traded is classified as

closely held stock
largely held stock
attributed stock
successful stock
✅ The correct answer is A.
Stock in small companies, owned by few people but not actively traded is classified as closely held stock. A closely-held stock is a circumstance wherein a company’s common shares are predominantly owned by one individual owner or by a small group of controlling stockholders.

172. An entry which is made on both sides of a cash book is called

Cash entry
Contra entry
Payment entry
Compound entry
✅ The correct answer is B.
An entry which is made on both sides of a cash book is called Contra entry. In the dual entry accounting system, a Contra Entry is an entry which is recorded to reverse or offset an entry on the other side of an account. If a debit entry is recorded in an account, it will be recorded on the credit side and vice-versa.

1812. Graph which is plotted for projected net present value and capital rates is called

net loss profile
net gain profile
net future value profile
net present value profile
✅ The correct answer is D.
Graph which is plotted for projected net present value and capital rates is called net present value profile. The net present value mainly measures the net increase in the company’s equity by working on a project. It is essentially the difference between the present value of cash flows and the initial investment based on the discount rate.
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