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Home Interview Accounting and Finance Comments

  • Question
  • The APC is calculated as


  • Options
  • A. consumption/income
  • B. change in income/change in consumption
  • C. income/consumption
  • D. change in consumption/change in income

  • Correct Answer
  • consumption/income 

    Explanation

    The average propensity to consume (APC) is the ratio of consumption expenditures (C) to disposable income (DI), or APC = C / DI. 

     

    Hence, APC = consumption/income.

  • Tags: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

    Accounting and Finance problems


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    • 1. Unearned revenue is classified as

    • Options
    • A. Liability
    • B. Owner's equity
    • C. Asset
    • D. Income
    • Discuss
    • 2. Depreciation is a process of

    • Options
    • A. Allocation
    • B. Valuation
    • C. Both A & B
    • D. Appropriation
    • Discuss
    • 3. Accounts Receivable financing is based on
    • Discuss
    • 4. Which of the following is not true about enterprise systems?

    • Options
    • A. Enterprise software is expressly built to allow companies to mimic their unique business practices.
    • B. Enterprise software includes analytical tools to evaluate overall organizational performance.
    • C. Enterprise system data have standardized definitions and formats that are accepted by the entire organization.
    • D. Enterprise systems help firms respond rapidly to customer requests for information or products.
    • Discuss
    • 5. Who buys Municipal bonds?
    • Discuss
    • 6. Is accounts receivable an asset or liability?
    • Discuss
    • 7. Which of the following best describes term life insurance?

    • Options
    • A. The insured pays a premium for a specified number of years.
    • B. The insured is covered during his or her entire lifetime.
    • C. The insured pays the premium until his or her death.
    • D. The insured can borrow or collect the cash value of the policy.
    • Discuss
    • 8. The principle of diversification tells us that

    • Options
    • A. spreading an investment across many diverse assets will eliminate some of the total risk
    • B. concentrating an investment in two or three large stocks will eliminate all of the unsystematic risk
    • C. spreading an investment across five diverse companies will not lower the total risk
    • D. concentrating an investment in three companies all within the same industry will greatly reduce the systematic risk
    • Discuss
    • 9. when a purchase on account is made the invoice becomes

    • Options
    • A. debt
    • B. credit
    • C. both A & B
    • D. None of the above
    • Discuss
    • 10. What type of account is accounts receivable?

    • Options
    • A. Asset
    • B. Liability
    • C. Expense
    • D. Equity
    • Discuss


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