53. If an effect of an error is cancelled by the effect of some other error, it is commonly known as

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Error of principle
Compensatory errors
Error of omission
Error of commission
✅ The correct answer is B.
If an effect of an error is cancelled by the effect of some other error, it is commonly known as Compensatory errors. A compensating error is an accounting error that offsets another accounting error. These errors can be difficult to spot when they occur within the same account and in the same reporting period, since the net effect is zero.

618. Subtracted flexible budget amount can form an actual result to calculate

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unstated budget variance
flexible budget variance
constant budget variance
static budget variance
✅ The correct answer is B.
Subtracted flexible budget amount can form an actual result to calculate flexible budget variance. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results. If actual revenues are inserted into a flexible budget model, this means that any variance will arise between budgeted and actual expenses, not revenues.

616. An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating

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original period
investment period
payback period
forecasted period
✅ The correct answer is C.
An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating payback period. The payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, the payback period is the length of time an investment reaches a breakeven point.

613. Under which of the following forms of market structure does a firm have no control over the price of its product?

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Monopoly
Monopolistic competition
Oligopoly
Perfect competition
✅ The correct answer is D.
Under Perfect competition forms of market structure does a firm have no control over the price of its product. All goods in a perfectly competitive market are considered perfect substitutes, and the demand curve is perfectly elastic for each of the small, individual firms that participate in the market. These firms are price takers–if one firm tries to raise its price, there would be no demand for that firm’s product

607. The surplus in an insurance company is a function of –

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How Asset is valued
How liability is valued
How Assets & Liabilities are valued
None of the above
✅ The correct answer is C.
The surplus in an insurance company is a function of how Assets & Liabilities are valued. Surplus is also known as net worth or the difference between the market value of assets and the present value of the liabilities and their relationship.

604. Broad’s average use to assign cost of revenue to cost objects will be classified as

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refined costing system
refined selling system
undefined costing
defined selling system
✅ The correct answer is A.
Broad’s average use to assign cost of revenue to cost objects will be classified as refined costing system. A refined costing system reduces the use of broad averages for assigning the cost of resources to cost objects (such as jobs, products, and services) and provides better measurement of the costs of indirect resources used by different cost objects no matter how differently various cost objects use indirect resources.

601. In Corporation characteristics, losses are subject to funds invested actually is considered as

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limited liability
unlimited liability
general liability
controlled ownership liability
✅ The correct answer is A.
In Corporation characteristics, losses are subject to funds invested actually is considered as limited liability. Limited liability is a type of legal structure for an organization where a corporate loss will not exceed the amount invested in a partnership or limited liability company. In other words, investors’ and owners’ private assets are not at risk if the company fails.