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1138. An additional cost, incurred for some specific activity to bring processed product on to next production stage is

partial cost
relevant cost
incremental cost
irrelevant cost
✅ The correct answer is C.
An additional cost, incurred for some specific activity to bring processed product on to next production stage is incremental cost. Incremental cost also referred to as marginal cost, is the total change a company experiences within its balance sheet or income statement due to the production and sale of an additional unit of product.

101. Accrued expenses are considered as

Asset
Liability
Gain
Income
✅ The correct answer is B.
Accrued expenses are considered as Liability. Accrued expenses are typically periodic, and are documented on a company’s balance sheet as current liabilities.

1140. Which of the following is used in B2B to pay for purchases?

e‐commerce
financial electronic data interchange
electronic data exchange
electronic checks
✅ The correct answer is B.
Financial electronic data interchange is used in B2B to pay for purchases. Business-to-business is a situation where one business makes a commercial transaction with another.

1141. A portfolio consists of all stocks in a market is classified as

market portfolio
return portfolio
correlated portfolio
diversified portfolio
✅ The correct answer is A.
A portfolio consists of all stocks in a market is classified as market portfolio. A market portfolio is a theoretical bundle of investments that includes every type of asset available in the world financial market, with each asset weighted in proportion to its total presence in the market.

102. The accrual basis of accounting records revenues when they are

Collected
Earned
Contracted
Readily available for use
✅ The correct answer is B.
The accrual basis of accounting records revenues when they are earned. In other words, under the accrual basis of accounting, the receipt of cash and the payment of cash are not the focus of reporting revenues and expenses.

1126. Policy Allocation Charge would be _________ in the initial years.

High
Low
Moderate
None of the three
✅ The correct answer is A.
Policy Allocation Charge would be high in the initial years.
This is deducted from the premium upfront. It is a percentage of the premium appropriated towards charges before allocating the units under the policy. This charge is levied to recover the initial expense incurred towards issuing the policy such as the distributor fee and the cost of underwriting. The balance is the investable amount used to purchase units of the funds chosen by the policyholder. Though the Insurance and Regulatory and Development Authority, or IRDA, has set guidelines that ensure a cap on these charges from the fifth year onwards, the premium allocation charges in the first few years continue to remain significantly high.

1128. A worm is designed to spread _________.

from computer to computer
from file to file on a computer
from Web site to Web site
from Web site to computer
✅ The correct answer is A.
A worm is designed to spread from computer to computer. A computer worm is a standalone malware computer program that replicates itself in order to spread to other computers. Often, it uses a computer network to spread itself, relying on security failures on the target computer to access it.
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