Author name: Administrator

91. Trial Balance is prepared to check accuracy of

Ledger account balances
Balance sheet balances
Income statement balances
Cash flow statement balances
✅ The correct answer is A.
A Trial Balance is a statement that shows the total of debit and credit balances of accounts. The total of debit amounts shall be equal to the credit amounts for the trial balance to tally. Hence, it verifies the arithmetical accuracy of the postings in the ledger accounts.

1030. Responsibility Centre can be categorised into:

Cost Centres only
Profit Centres only
Investment Centres only
Cost Centres, Profit Centres and Investment Centres
✅ The correct answer is D.
Responsibility Centre can be categorised into Cost Centres, Profit Centres and Investment Centres. Responsibility centers are often categorized by the degree of authority and responsibility given to the manager.

1032. If book value is greater than market value comparison with investors for future stock are considered as

pessimistic
optimistic
experienced
inexperienced
✅ The correct answer is A.
If book value is greater than market value comparison with investors for future stock are considered as pessimistic. Book value is also the net asset value of a company calculated as total assets minus intangible assets (patents, goodwill) and liabilities. For the initial outlay of an investment, book value may be net or gross of expenses such as trading costs, sales taxes, service charges and so on.

1034. Cost which is changed in proportion to level total volume is

fixed cost
variable cost
total cost
infeasible cost
✅ The correct answer is B.
Cost which is changed in proportion to level total volume is variable cost. Variable costs are costs that change as the quantity of the good or service that a business produces changes.

89. Cost of a fixed asset – Accumulated depreciation expenses of the fixed asset = ?

Book value of a fixed asset
Market value of a fixed asset
Historical cost of a fixed asset
Recoverable amount if a fixed asset
✅ The correct answer is A.
Cost of a fixed asset – Accumulated depreciation expenses of the fixed asset = Book value of a fixed asset. Except for the cost of land, the cost of a fixed asset is spread over its estimated useful life to the business; the amount allocated to each period is called depreciation expense.

1011. Which of the following is not a pre-requisite for launching a complaint with ombudsman?

The complaint must be made by an individual on a ‘Personal Lines’ insurance
The complaint must be lodged within 1 year of the insurer rejecting the complaint
Complainant has to approach a consumer forum prior to ombudsman
The total relief sought must be within an amount of Rs. 20 lakh
✅ The correct answer is C.
A person can directly lodge a complaint with ombudsman. Hence, it is not a pre-requisite that complainant has to approach a consumer forum prior to ombudsman.
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