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1589. The first organized stock exchange was set up in the year __________.

1887

1992

1991

1994

✅ The correct answer is A.
The first organized stock exchange was set up in the year 1887. A number of stock brokers who geared up themselves, set up a voluntary organization in 1887.

1590. Earning Goodwill is _________ for business ethics.

Need

Uses

merits

None

✅ The correct answer is A.
Earning Goodwill is need for business ethics. Business ethics are required to protect the interest of employees, shareholders, competitors, dealers, suppliers, etc. It protects them from exploitation through unfair trade practices.

142. The portion of the acquisition cost of an asset yet to be allocated is known as

Written down value

Accumulated value

Realizable value

Salvage value

✅ The correct answer is A.
The portion of the acquisition cost of an asset yet to be allocated is known as Written down value. Written-down value is the value of an asset after accounting for depreciation or amortization.

1572. The method of evaluating the efficiency of workers is termed as _________.

merit rating

job evaluation

filing

indexing

✅ The correct answer is A.
The method of evaluating the efficiency of workers is termed as merit rating. Merit Rating is also known as performance appraisal or performance evaluation. It is a systematic process for measuring the performance of the employees in terms of job requirements.

143. Outsider’s claim against the assets of the business is called

Liability

Expense

Income

Capital

✅ The correct answer is A.
Outsider’s claim against the assets of the business is called Liability. Liabilities are defined as a company’s legal financial debts or obligations that arise during the course of business operations.

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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