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1548. In commercial contracts, the principle to be observed is

Caveat Emptor

Indemnity

Proximity

Uberrima Fides

✅ The correct answer is A.
In commercial contracts, the principle to be observed is Caveat Emptor. Caveat emptor is a Latin term that means “let the buyer beware.” Similar to the phrase “sold as is,” this term means that the buyer assumes the risk that a product may fail to meet expectations or have defects.

1550. Stock issued by company have lower rate of return because of

high market to book ratio

low book to market ratio

low market to book ratio

high book to market ratio

✅ The correct answer is B.
Stock issued by company have lower rate of return because of low book to market ratio. The book-to-market ratio is used to find a company’s value by comparing its book value to its market value.

1552. The ability to change the product to better fit the needs of the customer is called ________.

customization

personalization

privacy

accessibility

✅ The correct answer is A.
The ability to change the product to better fit the needs of the customer is called customization. It is the action of modifying something to suit a particular individual or task.

1534. Process of tracing direct costs and allocation of indirect costs is known as

cost assignment

direct assignment

indirect assignment

economic assignment

✅ The correct answer is A.
Process of tracing direct costs and allocation of indirect costs is known as cost assignment. Cost assignment is the allocation of costs to the activities or objects that triggered the incurrence of the costs.

1519. Inter process profits are ________.

credited to each process a/c

debited to respective process a/c

shown only in the finished stock a/c

shown in the balance sheet

✅ The correct answer is B.
Inter process profits are debited to respective process a/c. Inter process profit represents the value added to the output over its cost, while being transferred from one process to another. Since the value addition is without incurring any cost, it would amount to or result in an amount of profit equal to the value addition.

1520. The most widely used encryption standard is ______.

Advanced Encryption Standard (AES)

Data Encryption Standard (DES)

Universal Encryption Standard (UES)

Optimal Encryption Standard (OES)

✅ The correct answer is A.
The most widely used encryption standard is Advanced Encryption Standard (AES). The Advanced Encryption Standard, or AES, is a symmetric block cipher chosen by the U.S. government to protect classified information and is implemented in software and hardware throughout the world to encrypt sensitive data.

1521. Difference between budgeted amounts and actual results is classified as

standard deviation

variances

mean average

weighted average

✅ The correct answer is B.
Difference between budgeted amounts and actual results is classified as variances. Variance is a measurement of the spread between numbers in a data set. The variance measures how far each number in the set is from the mean.

1523. Bonds issued by small companies tend to have

high liquidity premium

high inflation premium

high default premium

high yield premium

✅ The correct answer is A.
Bonds issued by small companies tend to have high liquidity premium. Liquidity premium is a premium demanded by investors when any given security cannot be easily converted into cash for its fair market value. When the liquidity premium is high, the asset is said to be illiquid, and investors demand additional compensation for the added risk of investing their assets over a more extended period since valuations can fluctuate with market effects.

1525. Which of the following is / are assumption(s) underlying the Miller and Modigliani analysis?

Capital markets are perfect

Investors are assumed to be rational and behave accordingly

There is no corporate or personal income tax

All of the above.

✅ The correct answer is D.
Capital markets are perfect, Investors are assumed to be rational and behave accordingly and there is no corporate or personal income tax are the assumptions underlying the Miller and Modigliani analysis.

135. Salaries paid in advance should be shown on

Asset side of the Balance sheet

Liability side of the Balance sheet

Credit side of the Trading account

All of the above

✅ The correct answer is A.
Salaries paid in advance should be shown on Asset side of the Balance sheet. An advance paid is recorded as a current asset in the company’s balance sheet.

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