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Q:

Why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings ?

Answer

Capital expenditures are capitalized because of the timing of their estimated benefits – the lemonade stand will benefit the firm for many years. The employees’ work, on the other hand, benefits the period in which the wages are generated only and should be expensed then. This is what differentiates an asset from an expense.


 

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Subject: Accounts Receivable Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

4 2596
Q:

Who among the following is set to become the youngest-ever "Messenger of Peace," for 'United Nations' ?

A) Rashi Anand B) Shikha Patra
C) Bedadyuti Jha D) Malala Yousafzai
 
Answer & Explanation Answer: D) Malala Yousafzai

Explanation:
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Filed Under: Famous Personalities
Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

4 3774
Q:

" One Earth ” is the name of the corporate headquarters of which firm ?

A) Tata Consultancy Services B) Suzlon Energy
C) Power grid Corporation of India Ltd D) Wipro
 
Answer & Explanation Answer: B) Suzlon Energy

Explanation:

Suzlon energy has its corporate headquarter in Pune, Maharashtra with the name of “One Earth”. Spread over 10 acres of land, the structure is completely powered by renewable energy. One Earth has been certified as the LEED (Leadership in Energy and Environment Design) Platinum building. Suzlon is largest wind turbine manufacturer in India and third largest in world.

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Filed Under: General Awareness
Exam Prep: Bank Exams , CAT
Job Role: Bank PO

2 2688
Q:

The First Five Year Plan was based on ___________.

A) Herold Domar Model B) P.C . Mahalanobis Model
C) Both the Above D) None of the above
 
Answer & Explanation Answer: A) Herold Domar Model

Explanation:
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Filed Under: Indian Economy
Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

9 5226
Q:

The concept of Economic planning in India is derived from ________.

A) Russia B) Australia
C) USA D) UK
 
Answer & Explanation Answer: A) Russia

Explanation:
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Filed Under: Indian Economy
Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk

20 9312
Q:

Which day is declared as " International Day of Sport for Development and Peace (IDSDP) " by the UN General Assembly ?

A) 5th April B) 6th April
C) 7th April D) 8th April
 
Answer & Explanation Answer: B) 6th April

Explanation:

6 April was declared as the International Day of Sport for Development and Peace (IDSDP) by the UN General Assembly. On the occasion of the 2017 International Day of Sport for Development and Peace (IDSDP), the United Nations Office on Sport for Development and Peace (UNOSDP) launches the digital campaign #WePlayTogether to encourage organizations and individuals.

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Filed Under: Important Days and Years
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Bank Clerk

7 3250
Q:

" Rani ki Vav " an archaeological attraction is located in which of the following states ?

A) Andhra Pradesh B) Telangana
C) Rajasthan D) Gujarat
 
Answer & Explanation Answer: D) Gujarat

Explanation:

Rani ki Vav meaning the Queen’s Stepwell is an archaeological site in the state of Gujarat. Beauitfully structured, the site has been included in the list of international heritage sites by UNESCO. With the help of the ambitious project, The Scottish Ten, Rani ki Vav is among the five heritage sites that would be recreated digitally for managment and conservation.

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Filed Under: Famous Places
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Bank Clerk

8 4718
Q:

RBI appoints _______ as New Executive Director in 2017 ?

A) Smt. Malvika Sinha B) Smt. Girija Rana
C) Smt. Indira Devi D) CP Rajan
 
Answer & Explanation Answer: A) Smt. Malvika Sinha

Explanation:

The Reserve Bank of India has appointed Smt. Malvika Sinha as Executive Director (ED).

As Executive Director Smt. Sinha will look after Foreign Exchange Department, Department of Government and Bank Accounts and Internal Debt Management Department.

Smt. Malvika Sinha holds a Masters Degree from University of Bombay and has done her Masters in Public Administration. She is also a Certificated Associate of Indian Institute of Bankers.

Smt. Sinha joined Reserve Bank in 1982 and as a career central banker served in the areas of regulation and supervision, foreign exchange and Government and Bank Accounts in the Bank. Prior to being promoted as ED, Smt. Sinha was Principal Chief General Manager, Department of Co-operative Banking Supervision in the Reserve Bank.

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Filed Under: General Awareness
Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

5 2194