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1911. State the correct statement out of these.

Every pension is a kind of annuity

Every annuity is also a pension

Pension and annuity are one and the same

Every pension is not an annuity

✅ The correct answer is A.
Every pension is a kind of annuity. Annuity is a fixed sum that you get every year to provide for pension.

1913. Universal life policies are kept in force even if premiums are not paid, provided its cash value was sufficient to pay for the following items:-

Policy preparation & stamp charges

Agent commission & policy charges

Mortality charges and expenses

All of the above

✅ The correct answer is C.
Universal life policies are kept in force even if premiums are not paid, provided its cash value was sufficient to pay for Mortality charges and expenses.

1903. At shut down point

Price is equal to AVC

Total revenue is equal to TVC

Total loss of the firm is equal to TFC

All of the above

✅ The correct answer is D.
At shut down point Price is equal to AVC, Total revenue is equal to TVC and Total loss of the firm is equal to TFC.

181. Which of the following financial statements shows the movement of cash and cash equivalents during an accounting period?

Income statement

Balance sheet

Cash flow statement

Statement of changes in equity

✅ The correct answer is C.
Cash flow statement shows the movement of cash and cash equivalents during an accounting period. A cash flow statement, also known as statement of cash flows or funds flow statement, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.

1891. Balance of abnormal gain a/c is transferred to ________.

balance sheet

debit side of profit and loss a/c

credit side of profit and loss a/c

costing profit and loss a/c

✅ The correct answer is D.
Balance of abnormal gain a/c is transferred to costing profit and loss a/c. Abnormal loss is transferred to the costing P&L.

1892. Every factor of production gets rewarded equal to its

Cost

Marginal product

Price

Increasing return

✅ The correct answer is B.
Every factor of production gets rewarded equal to its Marginal product. No single firm can influence the market price of a factor of production. Therefore, in order to get the equilibrium position, a firm will employ labourers up to a point where their respective marginal revenue productivity is equal to their wage rate.

1893. In process and job costing system, normal spoilage cost is considered as

conversion costs

sunk costs

inventoriable costs

non inventoriable costs

✅ The correct answer is C.
In process and job costing system, normal spoilage cost is considered as inventoriable costs. Inventoriable costs are included in the cost of a product

1894. A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as

factorization model

Two factor model

multifactor model

quoted factor model

✅ The correct answer is C.
A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as multifactor model. A multi-factor model is a financial model that employs multiple factors in its calculations to explain market phenomena and/or equilibrium asset prices.

1895. The expansion of EAR is?

equivalent annual rate

equivalent annuity rate

equally applied rate

equal advance rate

✅ The correct answer is A.
The expansion of EAR is equivalent annual rate. The Effective Annual Rate (EAR) is the interest rate that is adjusted for compounding over a given period. Simply put, the effective annual interest rate is the rate of interest that an investor can earn (or pay) in a year after taking into consideration compounding.

1896. Bonds with deferred call have protection which is classified as

provision protection

deferred protection

call protection

✅ The correct answer is D.
Bonds with deferred call have protection which is classified as call protection. A call protection is a protective provision of a callable security prohibiting the issuer from calling back the security for a specified period of time.

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