118. Method, which allocates cost of support department to operating and support departments is known as

A) indirect method
B) direct method
C) step down method
D) reciprocal method
✅ ANSWER: C
Method, which allocates cost of support department to operating and support departments is known as step down method. The step method (also known as step down method) allocates the cost of a service department to other service departments as well as to operating departments. The cost allocation under step method is a sequential process.

116. Real rate expected cash flows and nominal rate expected cash flows must be

A) accelerated
B) equal
C) different
D) inflated
✅ ANSWER: B
Real rate expected cash flows and nominal rate expected cash flows must be equal. Nominal cash flow is the true dollar amount of future revenues the company expects to receive and expenses it expects to pay out, without any adjustments for inflation. In the short term and under conditions of low inflation, the amounts attributed to nominal and real cash flows are nearly identical.

17. Promissory note is prepared by

A) Drawer
B) Endorsee
C) Drawee
D) All of the above
✅ ANSWER: A
Promissory note is prepared by Drawer. Promissory note is prepared and signed by the a person / organisation ( borrower) while borrowing money from a lender.

106. What is a model of a proposed product, service, or system?

A) Prototyping
B) Prototype
C) Proof‐of‐concept prototype
D) Selling prototype
✅ ANSWER: B
Prototype is a model of a proposed product, service, or system. A prototype is an original model, form or an instance that serves as a basis for other processes.

104. Savings can be considered as a composite of two decisions. Choose them from the list below.

A) Risk retention and reduced consumption
B) Gifting and accumulation
C) Spending and accumulation
D) Postponement of consumption and parting with liquidity
✅ ANSWER: D
Savings can be considered as a composite of Postponement of consumption and parting with liquidity.
Postponement of consumption: an allocation of resources between present and future consumption.
Parting with liquidity (or ready purchasing power) in exchange for less liquid assets. For instance, purchase of a life insurance policy implies exchanging money for a contract which is less liquid.