Author name: Administrator

1220. Utility is more closely related to the term

Useful
Useless
Necessary
Satisfaction
✅ The correct answer is D.
Utility is more closely related to the term Satisfaction. The term was introduced initially as a measure of pleasure or satisfaction within the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill.

1224. An additional desired compensation by investors for assuming an additional risk on investment is classified as

risk premium
investor premium
additional premium
assumed premium
✅ The correct answer is A.
An additional desired compensation by investors for assuming an additional risk on investment is classified as risk premium. A risk premium is the return in excess of the risk-free rate of return an investment is expected to yield; an asset’s risk premium is a form of compensation for investors who tolerate the extra risk, compared to that of a risk-free asset, in a given investment.

1228. A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?

Capital cost of a new collection vehicle
Depreciation of the machinery
Operatives wages
Fuel for the collection Vehicles
✅ The correct answer is B.
A Local Authority is preparing cash Budget for its refuse disposal department. Depreciation of the machinery would not be included in the cash budget. Depreciation is not a cash item and would be excluded from the cash budget.

109. What is the next step to Journalizing in accounting cycle?

Recording
Posting
Balancing
Analyzing
✅ The correct answer is B.
Posting is the next step to Journalizing in accounting cycle. 10 Steps of Accounting Cycle are; Analyzing and Classify Data about an Economic Event. Journalizing the transaction. Posting from the Journals to General Ledger. Preparing the Unadjusted Trial Balance. Recording Adjusting Entries. Preparing the Adjusted Trial Balance. Preparing Financial Statements.

1201. A measure which is not included in Fama French Three-Factor model is

realized risk free rate
rate of return on market
random error
risk premium
✅ The correct answer is D.
A measure which is not included in Fama French Three-Factor model is risk premium. The Fama-French three-factor model is an expansion of the capital asset pricing model (CAPM) CAPM formula shows the return of a security is equal to the risk-free return plus a risk premium, based on the beta of that security. The model is adjusted for outperformance tendencies.
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