Economics MCQs For Lectureship CSS PMS And NTS Part II

91 What does trading on equity means?

The use of fixed-interest borrowed funds for getting a higher return on equity

92 Cost of goods sold refers to what?

Sales minus gross profits

93 In the pay-back period method of capital budgeting, investment is divided by what?

Constant annual cash flow

94 What is Break-even-point?

A situation where there is no profit no loss

95 What does under-capitalization means?

A situation where the capital base does not justify the amount of earnings made and needs to be enhanced

96 A scheduled of balances drawn from the ledger is called what?

A trial balance

97 What does goodwill of a firm represents?

Intangible assets

98 A bank account is what type of account?

Personal account

99 Prepaid expenses appearing in a trial balance will figure in which report?

Balance sheet

100 What is called the excess of current assets over current liabilities?

Working capital