1507. A type of contract in which contract holder has right to sell an asset at specific period for predetermining price is classified as

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option
written contract
determined contract
featured contract
✅ The correct answer is A.
A type of contract in which contract holder has right to sell an asset at specific period for predetermining price is classified as option. Options are financial instruments that are derivatives or based on underlying securities such as stocks. An options contract offers the buyer the opportunity to buy or sell depending on the type of contract they hold the underlying asset.

1506. What is the standard length of a grace period under a life insurance policy?

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One month not more than 30 days
One month not less than 31 days
One month not more than 31 days
One month not less than 30 days
✅ The correct answer is B.
One month not less than 31 days is the standard length of a grace period under a life insurance policy. The amount of time granted in an insurance grace period is indicated in the insurance policy contract. Paying after the due date may attract a financial penalty from the insurance company.

1502. Cost of capital is the ______ rate of return expected by the investor.

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minimum
maximum
expected
marginal
✅ The correct answer is C.
Cost of capital is the expected rate of return expected by the investor. Cost of capital refers to the opportunity cost of making a specific investment. It is the rate of return that could have been earned by putting the same money into a different investment with equal risk.

1500. Identify the author of “The principles of Political Economy and Taxation”

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Alfred Marshall
J.S.Mill
David Ricardo
Turgot
✅ The correct answer is C.
The Principles of Political Economy and Taxation (19 April 1817) is a book by David Ricardo on economics. Ricardo claims in the preface that Turgot, Stuart, Adam Smith, Jean-Baptiste Say, Sismondi, and others had not written enough “satisfactory information” on the topics of rent, profit, and wages.

1481. Proceeds of company shares of sold stock is recorded in

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preferred stock account
common stock account
due stock account
preceded stock account
✅ The correct answer is B.
Proceeds of company shares of sold stock is recorded in common stock account. The common stock account is a general ledger account in which is recorded the par value of all common stock issued by a corporation.

132. Discount received is recorded on which of the following side of a cash book?

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Receipts
Payments
Income
Expenditure
✅ The correct answer is B.
Discount Received is a column found on the credit side of the Cash Book.
When a creditor is paid and the business receives a discount the discount received and is recorded in the discount received column and the corresponding entry appears as a debit in the creditor’s account.

1478. Which of the below is an example of an endowment assurance plan?

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Mortgage Redemption Plan
Credit Life Insurance Plan
Money Back Plan
Whole Life Plan
✅ The correct answer is C.
Money Back Plan is an example of an endowment assurance plan. In a money back plan, the insured person gets a percentage of sum assured at regular intervals, instead of getting the lump sum amount at the end of the term. It is an endowment plan with the benefit of liquidity.

131. Which of the following would NOT be considered as a component of ‘cost’ of stock?

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Transportation inward costs
Import duties
Salaries of selling staff
Purchase price
✅ The correct answer is C.
Salaries of selling staff would NOT be considered as a component of ‘cost’ of stock. When investors purchase shares of stock, the price paid includes two components: the price of the stock and the fee charged by the brokerage firm, called commission.