200. Health insurance policy premiums qualify for tax relief under Income Tax Act?

by
A) 80C
B) 80D
C) 10(10D)
D) 80E
✅ ANSWER: B
The premium paid towards health insurance policies qualifies for deduction under Section 80D of the Income Tax Act. On the premium paid for self, spouse, children and parents, the maximum deduction that can be availed is Rs 25,000 a year, provided the age of the individual is not above 60.

236. Supply curve is

by
A) Vertical in long run
B) Flatter in long run
C) Same in long and short run
D) Horizontal in both short and long run
✅ ANSWER: B
Supply curve is Flatter in long run. All firms have identical cost conditions. Hence, in the case of a constant cost industry, the long-run supply curve LSC is a horizontal straight line (i.e., perfectly elastic) at the price OP, which is equal to the minimum average cost. This means that whatever the output supplied, the price would remain the same.

227. Limited partners in partnership business have

by
A) no control
B) whole control
C) corporate authority
D) general authority
✅ ANSWER: A
Limited partners in partnership business have no control. Limited partnerships consist of partners who maintain an active role in the management of the business, and those who just invest money and have a very limited role in management. These limited partners are essentially passive investors whose liability is limited to their initial investment. Limited partnerships have more formal requirements than the other two types of partnerships.

224. Which one of the following statements is correct?

by
A) Annuity would stop strictly with the death of the annuitant
B) Annuity could be paid to the surviving spouse in case of joint life annuity
C) Both A & B
D) None of the above
✅ ANSWER: B
Both the statements are correct.
Annuity would stop strictly with the death of the annuitant and Annuity could be paid to the surviving spouse in case of joint life annuity.

221. Method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as

by
A) economic accounting
B) back-flush accounting
C) lean accounting
D) lead accounting
✅ ANSWER: C
Method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as lean accounting. Lean accounting is a financial management approach that supports the streamlined processes of lean manufacturing.

218. Method which allocates cost of support department to only operating departments is called

by
A) indirect method
B) direct method
C) step down method
D) reciprocal method
✅ ANSWER: B
Method which allocates cost of support department to only operating departments is called direct method. The direct allocation method is a technique for charging the cost of service departments to other parts of a business.