770. Direct labour and salary outlays direct material purchases, which are classified as

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price disbursements
cash disbursements
budget disbursements
goods disbursements
✅ The correct answer is B.
Direct labour and salary outlays direct material purchases, which are classified as cash disbursements. Cash disbursements, also called cash payments, in accounting refer to payments made by a company during a specified period, such as quarter or year.

769. Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as

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rework point
inspection point
spoilage point
scrap point
✅ The correct answer is B.
Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as inspection point. An inspection point is an identifiable record of inspection results that is assigned to a work or inspection operation.

763. Negative minimum risk portfolio of any security shows that market security sold

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less than original price
greater than original price
equal to original price
equal to sum of stocks
✅ The correct answer is A.
Negative minimum risk portfolio of any security shows that market security sold less than original price. Assets that have a negative correlation with each other produce negative portfolio variance. Variance is one measure of the volatility of an asset. An asset with higher variance also carries greater risk.

761. Continuous stock taking is a part of ________.

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annual stock taking
perpetual inventory
ABC analysis
VED analysis
✅ The correct answer is B.
Continuous stock taking is a part of perpetual inventory. Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

774. State the incorrect statement of the following ones.

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In a term insurance the benefits are fixed throughout the duration
In an MRI the insurance benefit on account of cover will decrease year after year
There is no material difference between a term insurance policy and an MRI as far as benefits are concerned
MRI is suitable for a loan sought from a bank as a mortgage cover
✅ The correct answer is C.
There is material difference between a term insurance policy and an MRI as far as benefits are concerned.

742. Who stated explicitly for the first time, the Law of Comparative Costs?

by
David Ricardo
Adam Smith
James Mill
Thomas Mun
✅ The correct answer is A.
David Ricardo stated explicitly for the first time, the Law of Comparative Costs. Absolute advantage refers to the uncontested superiority of a country to produce a particular good better. Comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.