The 'Fiscal Deficit' is: MCQ with Answer and Explanation

Question
The 'Fiscal Deficit' is:
A. Revenue deficit minus grants
B. Primary deficit plus interest payments
C. Total expenditure minus total receipts (excluding borrowings)
D. Total expenditure minus total revenue
Answer: Option C
Solution (By JKSSB Mock Tests)
Fiscal deficit = Total expenditure - (Revenue receipts + Non-debt capital receipts). It indicates borrowing requirement.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
In Cost-Volume-Profit (CVP) analysis, 'Angle of Incidence' represents:
A. The point of zero profit
B. The percentage of variable cost to sales
C. The angle of the fixed cost line
D. The angle between total sales line and total cost line above the BEP
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Correct Answer: Option D

Explanation:
A wider angle of incidence on a break-even chart indicates a higher rate of profit generation once the break-even point is crossed.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which of the following is a 'period cost'?
A. Direct material
B. Royalty on production
C. Direct labour
D. Rent of office building
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Correct Answer: Option D

Explanation:
Period costs are not tied to production volume and are expensed in the period incurred. Office rent is a period cost.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Section 40A(3)' disallows expenditure in excess of:
A. ₹10,000 paid in cash per day to a person
B. ₹2,000
C. No limit
D. ₹1,00,000
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Correct Answer: Option A

Explanation:
Payment exceeding ₹10,000 in cash for expenses is disallowed, with certain exceptions.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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