Author name: Administrator

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.

3201. Portfolio which consists of perfectly positive correlated assets having no effect of

negativity
positivity
correlation
diversification
✅ The correct answer is D.
Portfolio which consists of perfectly positive correlated assets having no effect of diversification. Diversification reduces the variability when the prices of individual assets are not perfectly correlated. In other words, investors can reduce their exposure to individual assets by holding a diversified portfolio of assets. As a result, diversification will allow for the same portfolio return with reduced risk.

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.

3207. All inputs can be varied in

Short run
Long run
Both periods
None of the period
✅ The correct answer is B.
All inputs can be varied in Long run. The long run is defined as a period in which all INPUTS are variable. Because of that all costs are variable too. You’re right that in the short run your rent and the cost of the machines you’ve already bought are fixed costs. But in the long term they aren’t.

3176. Relationship between independent variable and dependent variable must be

general ledger
non-achievable
non measureable
economically plausible
✅ The correct answer is D.
Relationship between independent variable and dependent variable must be economically plausible. The cost function shows a positive economically plausible relationship between machine-hours and maintenance costs.

3177. In respect of nomination, which of the following statements are correct?

More than one person can be nominated
Nomination can be done either at the time of commencement or later
Nomination can be changed by making an endorsement
All of the above
✅ The correct answer is D.
All the above statements regarding nomination are true.
More than one person can be nominated, Nomination can be done either at the time of commencement or later and Nomination can be changed by making an endorsement.

3179. Which of the following funds provides for predominant investment in equities?

Equity fund
Debt fund
Balanced fund
Money market fund
✅ The correct answer is A.
Equity fund provides for predominant investment in equities. An equity fund is a fund that invests in stocks, also called equity securities. Equity funds are practical investments for most people. The attributes that make equity funds most suitable for small individual investors are the reduction of risk.
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