All MCQs - Page 6346 of 6459 - GetMCQs.com – Competitive Exam MCQs & Quizzes

102. The accrual basis of accounting records revenues when they are

August 24, 2025 by Administrator

Collected

Earned

Contracted

Readily available for use

✅ The correct answer is B.
The accrual basis of accounting records revenues when they are earned. In other words, under the accrual basis of accounting, the receipt of cash and the payment of cash are not the focus of reporting revenues and expenses.

1142. Calculate income elasticity for the household when the income of a household rises by 10% and the demand for Rice rises by 5%.

August 24, 2025 by Administrator

-0.5

0.5

-2

✅ The correct answer is B.
Income elasticity for the household when the income of a household rises by 10% and the demand for Rice rises by 5% is 0.5. Income Elasticity = (% change in quantity demanded) / (% change in income).

1141. A portfolio consists of all stocks in a market is classified as

August 24, 2025 by Administrator

market portfolio

return portfolio

correlated portfolio

diversified portfolio

✅ The correct answer is A.
A portfolio consists of all stocks in a market is classified as market portfolio. A market portfolio is a theoretical bundle of investments that includes every type of asset available in the world financial market, with each asset weighted in proportion to its total presence in the market.

1140. Which of the following is used in B2B to pay for purchases?

August 24, 2025 by Administrator

e‐commerce

financial electronic data interchange

electronic data exchange

electronic checks

✅ The correct answer is B.
Financial electronic data interchange is used in B2B to pay for purchases. Business-to-business is a situation where one business makes a commercial transaction with another.

101. Accrued expenses are considered as

August 24, 2025 by Administrator

Asset

Liability

Gain

Income

✅ The correct answer is B.
Accrued expenses are considered as Liability. Accrued expenses are typically periodic, and are documented on a company’s balance sheet as current liabilities.

1138. An additional cost, incurred for some specific activity to bring processed product on to next production stage is

August 24, 2025 by Administrator

partial cost

relevant cost

incremental cost

irrelevant cost

✅ The correct answer is C.
An additional cost, incurred for some specific activity to bring processed product on to next production stage is incremental cost. Incremental cost also referred to as marginal cost, is the total change a company experiences within its balance sheet or income statement due to the production and sale of an additional unit of product.

1137. The office management simply means to ___________.

August 24, 2025 by Administrator

Eliminate

Withdraw

Control

Decide

✅ The correct answer is C.
The office management simply means to Control. It is the function of the management to organize, guide and control the whole activities of the office personnel for a common aim.

1136. Investment professionals whose jobs may depend on their performance relative to the market are the______________.

August 24, 2025 by Administrator

registered representatives

security analysts

investment bankers

portfolio managers

✅ The correct answer is A.
Investment professionals whose jobs may depend on their performance relative to the market are the registered representatives. There are many types of investment professionals including brokers, investment advisers and financial planners.

1135. Under which of the following approaches cost of equity capital is assumed to be constant with the change in leverage?

August 24, 2025 by Administrator

Net income approach

Modigliani and Miller approach

Net operating income approach

Traditional approach

✅ The correct answer is A.
Net income approach of the following approaches cost of equity capital is assumed to be constant with the change in leverage. Net Income Approach suggests that value of the firm can be increased by decreasing the overall cost of capital (WACC) through higher debt proportion.

1134. Surplus would arise in an insurance company, if

August 24, 2025 by Administrator

The actual experience is worse than what it had assumed

The actual experience is better than what it had assumed

The liabilities are under/over valued

The assets are valued in a conservative manner

✅ The correct answer is B.
When the actual experience of an insurance company is better than what it had assumed, the result would be surplus (profit) for the company.