73. Under diminishing balance method, depreciation

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Is constant every year
Increases every year
Decreases every year
None of the above
✅ The correct answer is C.
Under diminishing balance method, depreciation decreases every year. Since the book value reduces every year, hence the amount of depreciation also reduces every year. Under this method, the value of the asset never reduces to zero.

811. Difference between flexible budget amount and corresponding actual result is called

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corresponding variance
resultant variance
flexible budget variance
static budget variance
✅ The correct answer is C.
Difference between flexible budget amount and corresponding actual result is called flexible budget variance. A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The flexible budget is more sophisticated and useful than a static budget.

807. If market interest rates are expected to rise, you would expect___________.

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bond prices to fall more than stock prices
bond prices to rise more than stock prices
stock prices to fall more than bond prices
stock prices to rise and bond prices to fall.
✅ The correct answer is A.
If market interest rates are expected to rise, you would expect bond prices to fall more than stock prices. The prevailing rate of interest offered on cash deposits, determined by demand and supply of deposits and based on the duration (the longer the duration, the higher the rate) and amount (the higher the amount, the higher the rate) of deposits.

806. As part of Outpatient cover, which are the items that could not be covered?

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Dental treatment
Optical services
Health checkups
Surgery
✅ The correct answer is D.
As part of Outpatient cover, Surgery could not be covered. Outpatient treatment is the term that most private medical insurance policies use for treatment which is given at a hospital which does not require you to stay in hospital overnight.

805. The _________ the premium paid by you towards your life insurance, the _________ will be the compensation paid to the beneficiary in the event of your death.

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Higher, higher
Lower, higher
Higher, lower
Faster, slower
✅ The correct answer is A.
The higher the premium paid by you towards your life insurance, the higher will be the compensation paid to the beneficiary in the event of your death.

803. Type of plan of a company, which quantities expectations of cash flows, income and financial position is known as

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budget
batching
complexity
process
✅ The correct answer is A.
Type of plan of a company, which quantities expectations of cash flows, income and financial position is known as budget. A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.

802. New issue market is an integral part of the ___________.

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stock exchange
capital market
stock exchange and capital market
discount houses
✅ The correct answer is B.
New issue market is an integral part of the capital market. The most important type of capital market is the primary market. It is what we call the new issue market. It exclusively deals with the issue of new securities, i.e. securities that are issued to investors for the very first time.