639. The risk that arises due to change in the purchasing power is called ?

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Financial risk
Interest rate risk
Business risk
Inflation risk
✅ The correct answer is D.
The risk that arises due to change in the purchasing power is called Inflation risk. Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won’t be worth as much in the future because of changes in purchasing power due to inflation.

626. A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of ________.

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bundling
un-bundling
financial engineering
credit enhancement
✅ The correct answer is E.
A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of un-bundling and financial engineering.

624. Which of the following statements best describes an ordinary annuity?

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Equal cash flows at equal time intervals forever
Equal cash flows at equal time intervals for a specific time period
Lumpy cash flows at equal time intervals forever
Lumpy cash flows at equal time intervals for a specific time period
✅ The correct answer is B.
An ordinary annuity is a series of equal payments made at the end of each period for a fixed period of time.

622. Allotment of overhead incurred for a particular cost centre to that specific cost centre is ________.

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allocation
allotment
primary distribution
secondary distribution
✅ The correct answer is A.
Allotment of overhead incurred for a particular cost centre to that specific cost centre is allocation. Allocation and apportionment are accounting methods for attributing cost to certain cost objects for budgeting, planning, and financial reporting.

659. Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called

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partial work costs
transferred-in costs
transferred-out costs
weighted average costs
✅ The correct answer is B.
Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called transferred-in costs. Transferred-in costs are costs accumulated during the upstream production processes within a company. Transferred-in costs are the costs accumulated by the product at any given point in production.