Administrator

297. Land on lease should be shown in Blance sheet contrary to the fact that the company does not own that piece of land is the implementation of which accounting concept?

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Matchig concept
Accrual concept
Prudence concept
Substance over form concept
✅ The correct answer is D.
Land on lease should be shown in Blance sheet contrary to the fact that the company does not own that piece of land is the implementation of Substance over form concept.

3141. Beta coefficient is used to measure market risk which is an index of

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coefficient risk volatility
market risk volatility
stock market volatility
portfolio market portfolio
✅ The correct answer is C.
Beta coefficient is used to measure market risk which is an index of stock market volatility. In the securities markets, volatility is often associated with big swings in either direction. For example, when the stock market rises and falls more than one percent over a sustained period of time, it is called a “volatile” market.

3143. The law of consumer surplus is based on

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Indifference curve analysis
Revealed preference theory
Law of substitution
The law of diminishing marginal utility
✅ The correct answer is D.
The law of consumer surplus is based on the law of diminishing marginal utility. The concept of consumer surplus is derived from the law of diminishing marginal utility. As per the law, as we purchase more of a commodity, its marginal utility reduces. Since the price is fixed, for all units of the goods we purchase, we get extra utility. This extra utility is consumer surplus.

3146. A firm which outsources its works requires ___________.

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more employees
less employees
skilled employees
semi-skilled employees
✅ The correct answer is B.
A firm which outsources its works requires less employees. Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company’s own employees and staff.

3147. Collection of cost data, according to accounting system in an organized way is classified as

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system accumulation
accumulated data
cost accumulation
organized accumulation
✅ The correct answer is C.
Collection of cost data, according to accounting system in an organized way is classified as cost accumulation. Cost accumulation involves the use of a formal cost accounting system to collect cost information.

3135. With regards to valuation of assets by insurance companies, _________ is the value at which the life insurer has purchased or acquired its assets.

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Discounted future value
Discounted present value
Market value
Book value
✅ The correct answer is D.
With regards to valuation of assets by insurance companies, Book value is the value at which the life insurer has purchased or acquired its assets.