Multiple Choice Questions on Expected average annual income of company is Rs 50 000 and rate of capitalisation is 10 then am........... for Punjab Government (Allied) Exams Preparation

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Multiple Choice Questions

Expected average annual income of company is Rs 50 000 and rate of capitalisation is 10 then am...........

Finance( Revenue Account ) Cost of capital
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    Expected average annual income of company is Rs 50,000 and rate of capitalisation is 10% then amount of capitalisation will be:

     

    Rs. 5,00,000 

     

    Correct Answer

    Rs. 5,000

     

    Incorrect Answer

    Rs. 55,000

     

    Incorrect Answer

    Rs. 50,00,000.

    Incorrect Answer
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    Explanation:

    Amount of capitalization = Annual Income /Capitalisation rate = 50,000/.10 = 5,00,000/-

    By: Vikas Goyal
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