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1599. In weighted average cost of capital, a company can affect its capital cost through

policy of capital structure

policy of dividends

policy of investment

all of above

✅ The correct answer is D.
In weighted average cost of capital, a company can affect its capital cost through policy of capital structure, policy of dividends and policy of investment

1601. ___________ is the value of economic resources used as a result of producing or doing the thing costed.

Cost

Inventory

Labour

overhead

✅ The correct answer is A.
Cost is the value of economic resources used as a result of producing or doing the thing costed. Cost is ascertained by cost centres or cost units or by both.

1603. Under Deferred annuity, the premium has to be paid –

In regular instalments

In lumpsum

Both A & B

None of the above

✅ The correct answer is C.
These annuities may be purchased with a single payment or, as is more often the case, with a series of periodic payments.

147. Which of the following is a real account?

Salary account

Cash account

Outstanding rent account

Sundry creditors account

✅ The correct answer is B.
Cash account is a real account. Real accounts show up on a company’s balance sheet, which is the financial statement that lists all the accounts that a company has and their balances.

1607. In respect of Assignment which of the following is correct?

Assignee becomes owner of the policy

Assignee cannot have better rights than assignor

Both A & B

None of the above

✅ The correct answer is C.
In respect of Assignment the following are correct are Assignee becomes owner of the policy and Assignee cannot have better rights than assignor.

144. Capital expenditures are recorded in the

Trading account

Profit & Loss account

Balance sheet

All of the above

✅ The correct answer is C.
Capital expenditures are recorded in the Balance sheet. A capital expenditure is recorded as an asset, rather than charging it immediately to expense. It is classified as a fixed asset, which is then charged to expense over the useful life of the asset, using depreciation.

1576. Case in which average investors risk aversion is greater than slope of line and risk premium respectively is

steeper, greater

steeper, smaller

steeper, zero

Both A and B

✅ The correct answer is A.
Case in which average investors risk aversion is greater than slope of line and risk premium respectively is steeper, greater. Risk aversion means that investors will tend to purchase safe assets like highly rated bonds and CDs. Risk-averse individuals seek capital preservation over growth, which may actually be detrimental for those who are younger.

139. Which one of the following methods of inventory costing produces ending stock cost close to the market value of the inventory?

FIFO

LIFO

AVCO or averrage cost

Answer: Option A

✅ The correct answer is A.
FIFO methods of inventory costing produces ending stock cost close to the market value of the inventory. FIFO (First-in, first-out) method is based on the perception that the first inventories purchased are the first ones to be sold. It is a cost flow assumption for most companies. Since the theory perfectly matches to the actual flow of goods, therefore it is considered as the right way to value inventory.

1579. A bond whose price will rise above its face value is classified as

premium face value

premium bond

premium stock

premium warrants

✅ The correct answer is B.
A bond whose price will rise above its face value is classified as premium bond. A premium bond is a bond trading above its face value or in other words; it costs more than the face amount on the bond.

1581. Under trading means.

Having low amount of working capital

High turnover of working capital

Sales are less compared to assets employed

Low turnover of working capital

✅ The correct answer is D.
Under trading means low turnover of working capital. Under-trading is the reverse of over-trading. It means keeping funds idle and not using them properly. This is due to the under employment of assets of the business, leading to the fall of sales and results in financial crises.

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