Administrator, Author at GetMCQs

3228. “What is the company’s breakeven point: Selling price – Rs 6 per unit Variable production cost – Rs 1.20 per unit Variable selling cost – Rs 0.40 per unit Fixed production cost – Rs 4 per unit Fixed selling cost – Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units. “

8,000 units

8,333 units

10,000 units

10,909 units

✅ The correct answer is D.

3224. Which of the following statements is incorrect?

Insurance agent should indicate the scale of commission if asked by the customer

Insurance agent should share the commission by way of rebate

Insurance agent should disclose his licence on demand

Insurance agent should indicate the premium to be charged

✅ The correct answer is B.
All the options are correct, except option 3. Sharing commission with a client is illegal.

3229. All labour is

Homogeneous

Heterogeneous

Lazy

Intelligent

✅ The correct answer is B.
All labour is Heterogeneous.

307. No journal entry is required to be passed when there is

Loss by theft

Normal loss

Loss of bad debts

Abnormal loss of business

✅ The correct answer is B.
No journal entry is required to be passed when there is Normal loss. Normal loss increases the cost of production of the usable goods realized.

308. A cash deposit made by business appears on the bank statement as ____ balance

Debit

Credit

Expenses

Liability

✅ The correct answer is B.
A cash deposit made by business appears on the bank statement as Credit balance.

3230. Cost which remains unchanged, in proportion to level total volume of production is classified as

total cost

infeasible cost

fixed cost

variable cost

✅ The correct answer is C.
Cost which remains unchanged, in proportion to level total volume of production is classified as fixed cost. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.

306. Which of the following is/are kind of depreciation expenses?

Amortization

Depletion

Both of them

None of the above

✅ The correct answer is C.
Amortization and Depletion are kind of depreciation expenses. Depreciation, depletion, and amortization (DD&A) are accounting techniques that enable companies to gradually expense resources of economic value.

3199. An earning before interest, taxes, depreciation and amortization are calculated by

subtracting operating cost from net sales

subtracting net sales from operating costs

adding operating cost and net sales

adding interest and taxes

✅ The correct answer is A.
An earning before interest, taxes, depreciation and amortization are calculated by subtracting operating cost from net sales. Earnings before interest and taxes is a measure of a firm’s profit that includes all incomes and expenses except interest expenses and income tax expenses.

3203. If retention rate is 0.68 then payout rate will be

1.47

1.68

0.32

0.68

✅ The correct answer is C.

3205. According to capital asset pricing model assumptions, quantities of all assets are

given and fixed

not given and fixed

not given and variable

given and variable

✅ The correct answer is A.
According to capital asset pricing model assumptions, quantities of all assets are given and fixed. The Capital Asset Pricing Model (CAPM) measures the risk of a security in relation to the portfolio. It considers the required rate of return of a security in the light of its contribution to total portfolio risk.

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