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188. Which of the following is a selling expense?

Any tax/freight is paid on purchases
General salaries paid to laborers
Tax & freight paid on sale
Interest on deposits
✅ The correct answer is C.
Tax & freight paid on sale is a selling expense. Selling expense (or sales expense) includes any costs incurred by the sales department.

1987. Markets where assets are bought or sold within a few days or at some future dates are classified as

spot markets
future markets
Both A and B
financial instruments
✅ The correct answer is C.
Markets where assets are bought or sold within a few days or at some future dates are classified as spot markets and future markets. The spot market is where financial instruments, such as commodities, currencies and securities, are traded for immediate delivery. Delivery is the exchange of cash for the financial instrument. A futures contract, on the other hand, is based on the delivery of the underlying asset at a future date.

1989. Political stability is the major factor concerning_______________.

exchange risk
systematic risk
non-systematic risk
country risk
✅ The correct answer is D.
Political stability is the major factor concerning country risk. Political stability in this case refers to the lack of real competition for the governing elite. The ‘politically stable’ system enforces stringent barriers to personal freedoms.

1991. Aspects of accounting for scrap includes

physical tracking
non-inventoriable costing
inventory costing
both a and c
✅ The correct answer is D.
Aspects of accounting for scrap includes physical tracking and inventory costing.

1971. Walters model on dividend policy assumes that.

the firm offers an increasing amount of dividend per share at a given level of price per share
the firm has a finite life
the cost of capital of the firm is variable
equal to current assets plus current liabilities including bank borrowings
✅ The correct answer is D.
Walters model on dividend policy assumes that equal to current assets plus current liabilities including bank borrowings. Walter’s model shows the relevance of dividend policy and its bearing on the value of the share.

1975. ________________ factors lead to activity of stock market.

Money supply
Per capita income
Unemployment rate
Manufacturing and Trade
✅ The correct answer is A.
Money supply factors lead to activity of stock market. The money supply is the entire stock of currency and other liquid instruments circulating in a country’s economy as of a particular time. The money supply can include cash, coins, and balances held in checking and savings accounts, and other near money substitutes.

1976. Success in life insurance agency career depends on

Self-motivation for accepting challenges in the profession with fire in his belly
Positive self-image with high morale
A spirit of entrepreneurial skill
All of the above
✅ The correct answer is D.
Success in life insurance agency career depends on self-motivation for accepting challenges in the profession with fire in his belly, positive self-image with high morale and a spirit of entrepreneurial skill.

1982. As for the cost of production of an individual farmer, the rent paid by him

Enters into the price of his product
Does not enter into price of his product
Is unjustified
None of the above
✅ The correct answer is A.
As for the cost of production of an individual farmer, the rent paid by him enters into the price of his product. The classical political economists found value to be determined in production; since most of the cost of production could be reduced to labor, this approach was refined into the Labor Theory of Value.
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