Administrator, Author at GetMCQs

1268. Which of the following material facts need not be disclosed?

Matters of law

Fact which proposer was not aware

Fact which could have been discovered by reasonable diligence

All of the above

✅ The correct answer is D.
Matters of law, Fact which proposer was not aware and Fact which could have been discovered by reasonable diligence material facts need not be disclosed.

1269. If static budget is $208000 and flexible budget amount is $305000, then sales budget variance will be

$67,000

$97,000

$57,000

$47,000

✅ The correct answer is B.
Sales budget variance = Flexible budget – Static budget
= $305000 – $208000 = $97,000

1270. Which of the following is not one of the top three online career service providers?

CareerBuilder

Monster

HotJobs

USAJobs

✅ The correct answer is D.
USAJobs is not one of the top three online career service providers. USAJobs is the United States Government’s website for listing civil service job opportunities with federal agencies.

1272. Demand for final consumption arises in

Household sector only

Government sector only

Both household and government sector

Neither household nor government sector

✅ The correct answer is C.
Demand for final consumption arises in both household and government sector. In the basic two- sector circular flow of income model, the economy consists of two sectors: (1) households and (2) firms.

1274. Spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as

proration approach

appreciation approach

depreciation approach

adjusted approach

✅ The correct answer is A.
Spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as proration approach.

1276. Markets which bring closer institutions needing funds and with surplus funds are classified as

financial markets

corporate institutions

hedge firms

retirement planners

✅ The correct answer is A.
Markets which bring closer institutions needing funds and with surplus funds are classified as financial markets. A financial market is a broad term describing any marketplace where trading of securities including equities, bonds, currencies, and derivatives occur.

1278. Which of the below mentioned insurance plans has the least or no amount of savings element?

Term insurance plan

Endowment plan

Whole life plan

Money back plan

✅ The correct answer is A.
Term insurance plan has the least or no amount of savings element. Term insurance does not have a savings element associated with it.

1248. Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as

diversifiable risk

market risk

stock risk

portfolio risk

✅ The correct answer is B.
Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as market risk. Market risk is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved.

1250. Which of the following statements is incorrect with regards to decreasing term assurance?

Death benefit amount decreases with term of coverage

Premium amount decreases with term of coverage

Premium remains leveled throughout the term

Mortgage redemption plans are an example of decreasing term assurance plans

✅ The correct answer is B.
Premium amount increases with the term of coverage. Hence, option (2) is incorrect.

1252. Company low earning power and high interest cost cause financial changes which have

high return on equity

high return on assets

low return on assets

low return on equity

✅ The correct answer is B.
Company low earning power and high interest cost cause financial changes which have high return on assets. The higher the ROA number, the better, because the company is earning more money on less investment.

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