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156. Different accounting policies can be adopted in the following area(s)

Valuation of inventories

Valuation of Investments

Calculation of depreciation

All of the above

✅ The correct answer is D.
Different accounting policies can be adopted in the Valuation of inventories, Valuation of Investments and Calculation of depreciation.

1677. Conversion cost includes cost of converting……… into ……

Raw material, WIP

Raw material, Finished goods

WIP, Finished goods

Finished goods, Saleable goods

✅ The correct answer is B.
Conversion cost includes cost of converting Raw material into Finished goods. There are two main components of conversion costs: direct labor and manufacturing overheads.

1678. If overtime is resorted to at the desire of the customer, then the overtime premium:

should be charged to costing profit and loss account;

should not be charged at all

should be charged to the job directly

should be charged to the highest profit making department

✅ The correct answer is C.
If overtime is resorted to at the desire of the customer, then the overtime premium should be charged to the job directly. Overtime premium is paid to the workers for the extra time worked than the normal working hours specified in the Factories Act, 1948 or work agreement with the union.

1680. In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as

under allocated indirect cost

over allocated direct cost

over allocated budget

under allocated budget

✅ The correct answer is A.
In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as under allocated indirect cost because the allocated amount is less than actual amount.

157. Provision for bad debts is made as per the

Conservatism concept

Cost concept

Consistency concept

Going concern concept

✅ The correct answer is A.
Provision for bad debts is made as per the Conservatism concept. The conservatism principle is the general concept of recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received.

1684. Tendency of people to blame failure on bad luck but given tribute of success to themselves is classified as

self-attribution bias

self-success bias

self-failure bias

self-condition bias

✅ The correct answer is A.
Tendency of people to blame failure on bad luck but given tribute of success to themselves is classified as self-attribution bias. Self-attribution bias is a long-standing concept in psychology research and refers to individuals’ tendency to attribute successes to personal skills and failures to factors beyond their control.

1665. “Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information. Miles travelled 636,500 Tonnes carried 2,479 Number of drivers 20 Hours worked by drivers 35,520 Tonnes miles carried 375,200 Cost incurred 562,800”

Rs .88

Rs 1.50

Rs 15.84

Rs28, 140

✅ The correct answer is B.

1666. A coverage that protects businesses engaged in electronic commerce from losses caused by hackers is termed as _________

Hospital Insurance

Hacker Insurance

Identity theft Insurance

✅ The correct answer is C.
A coverage that protects businesses engaged in electronic commerce from losses caused by hackers is termed as Hacker Insurance.

1667. Which principle means flow of resources from many to one?

Mutuality or pooling

Mutuality or cooperation

Pooling or funding

Resourcing or pooling

✅ The correct answer is A.
Mutuality or pooling principle means flow of resources from many to one. Mutuality is the principle of private, commercial insurance; individuals enter the pool for sharing losses, and pay according to the best estimate of the risk they bring with them.

1668. Which of the following is not an element of the life insurance business?

Asset

Risk

Principle of mutuality

Subsidy

✅ The correct answer is D.
Subsidy is not an element of the life insurance business. A subsidy or government incentive is a form of financial aid or support extended to an economic sector generally with the aim of promoting economic and social policy.

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