Author name: Administrator

120. Prepaid expenses are considered as

Asset
Liability
Loss
Capital
✅ The correct answer is A.
Prepaid expenses are considered as Asset. Prepaid expenses are future expenses that have been paid in advance. You can think of prepaid expenses as costs that have been paid but have not yet been used up or have not yet expired. The amount of prepaid expenses that have not yet expired are reported on a company’s balance sheet as an asset.

1367. Method of matching orders by posting orders of buying and selling is classified as

electronic communication network
electronic dealer network
electronic stock network
electronic order network
✅ The correct answer is A.
Method of matching orders by posting orders of buying and selling is classified as electronic communication network. An electronic communication network (ECN) is a computerized system that automatically matches buy and sell orders for securities in the market.

1368. An efficient market hypothesis states in which all public or private information is reflected in current market prices is classified as

market efficiency
semi strong efficiency
weak form efficiency
strong form efficiency
✅ The correct answer is D.
An efficient market hypothesis states in which all public or private information is reflected in current market prices is classified as strong form efficiency. Strong-form efficiency is a component of the random walk theory and states that market and securities prices are not random and are influenced by past events. Strong-form efficiency is the opposite of weak form efficiency.

1369. Net working capital refers to.

total assets minus fixed assets
current assets minus current liabilities
current assets minus inventories
current assets.
✅ The correct answer is B.
Net working capital refers to current assets minus current liabilities. Working capital, also known as net working capital (NWC), is the difference between a company’s current assets, such as cash, accounts receivable (customers’ unpaid bills) and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable.

1370. Supply of a commodity is a

Stock concept
Flow concept
Both stock and flow concept
None of the above
✅ The correct answer is B.
Supply of a commodity is a flow concept. the commodity which the sellers or producers are able and willing to offer for sale at a particular price, during a certain period of time.

1371. In cost terms, direct manufacturing labour cost is included in

manufacturing costs
prime costs
conversion costs
both B and C
✅ The correct answer is D.
In cost terms, direct manufacturing labour cost is included in prime costs and conversion costs. Direct labor cost is the total cost of employing workers that work directly on a manufacturing product.
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