Question
Which one of the following is NOT a method of handling income ?
The correct answer is
Unequal salary method
Identifying Non-Income Handling Methods
The question asks to identify which of the listed options is NOT a recognized method for handling income. We need to evaluate each option to see if it describes a technique for managing or distributing income.
Analyzing Income Handling Options
- Handout method: This involves giving money or resources directly to someone, which is a way income is handled or distributed.
- Fifty-fifty method: This is a common strategy, especially for shared expenses, where income is divided equally. It's a clear method of handling income.
- Allowance method: This refers to providing a set amount of money regularly, often used within families. It is a structured way income is managed.
- Unequal salary method: This term describes a situation where individuals earn different salaries. It is a descriptor of salary disparity, not a method or strategy for *handling* or distributing income.
Conclusion on Income Handling
Based on the analysis, the 'Handout', 'Fifty-fifty', and 'Allowance' methods are all established ways to manage or distribute income. The 'Unequal salary method' simply describes a factual difference in earnings and is not a technique for handling income.
Therefore, the correct option is the one that is not a method of handling income.
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Important Questions from Financial Management
- The indicator which shows how much a company managed to get out of the capital they had put in the business.
- Arrange the following steps in making a budget in a sequence :
I. Estimate the cost of desired items.
II. List down the commodities and services needed by the family.
III. Check plans to see that they have a reasonable chance of success.
IV. Estimate total expected income.
V. Bring expected income and expenditure into balance.
Codes : - One of the internal constraint in implementation of a project is:
- Operating Leverage and Financial Leverage of a firm are 3 and 2, respectively. If sales increase by 6%, then earnings before tax will rise by :
Match the items of List - I with those of List - II and indicate the correct code :
List - I List - II (a) Net Income Approach (i) Working Capital Management (b) Profitability Index (ii) Over-capitalisation (c) Concentration Banking (iii) Capital Structure Planning (d) Lower Rate of Return (iv) Capital Budgeting Decision
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