Administrator, Author at GetMCQs

952. Fourth step in development of operating budget is to

choose alternatives

evaluate alternatives

efficiency improvements

predicted improvements

✅ The correct answer is A.
Fourth step in development of operating budget is to choose alternatives. An operating budget is a forecast of the revenues and expenses expected for one or more future periods.

953. Balance in electronic credit ledger under CGST can be used against which liability?

CGST Liability only

CGST and IGST liability

CGST, IGST and SGST liability

None of them

✅ The correct answer is B.

954. When an underwriter has to be very careful?

When sum insured is very small

When sum insured is very large

When income is very small

When income is very high

✅ The correct answer is B.
An underwriter is an investment bank that helps companies introduce their new securities to the market. In the insurance business, an underwriter is a company liable for insured losses in return for a fee (premium).

955. If firm’s average cost curve is falling then marginal curve must be

Falling

Rising

Below average cost curve

None of the above

✅ The correct answer is C.
If firm’s average cost curve is falling then marginal curve must be below average cost curve.

937. Which is the correct statement?

Agent is primary underwriter as also field underwriter

Numerical method of underwriting is by far the most objective method

Risk in substandard lives is likely to be higher than standard lives on account of increased mortality risk

All of the above

✅ The correct answer is D.
All the statements are correct.
Agent is primary underwriter as also field underwriter, Numerical method of underwriting is by far the most objective method and Risk in substandard lives is likely to be higher than standard lives on account of increased mortality risk.

938. ‐‐‐‐‐‐‐‐‐ card is read only mode.

Contact smart card

Contactless smart card

Proximity smart card

Both B and C

✅ The correct answer is C.
Proximity smart card is read only mode. A proximity card or prox card is a “contactless” smart card which can be read without inserting it into a reader device, as required by earlier magnetic stripe cards such as credit cards and “contact” type smart cards.

85. Purchase of fixed assets on credit is originally recorded in

Purchases book

Ledger

Cash book

Journal Proper

✅ The correct answer is D.
Purchase of fixed assets on credit is originally recorded in Journal Proper. On the assumption that the asset was purchased on credit, the initial entry is a credit to accounts payable and a debit to the applicable fixed asset account for the cost of the asset.

942. Book value is_______________.

the same as market value

a more accurate valuation technique than the dividend models

the accounting value of the firm as reflected in the financial statements

the same as liquidation value

✅ The correct answer is C.
Book value is the accounting value of the firm as reflected in the financial statements. Book value is also the net asset value of a company calculated as total assets minus intangible assets (patents, goodwill) and liabilities.

944. Type of basic financial statements consist of

balance sheet and income statement

statement of retained earning

statement of cash flows

all of above

✅ The correct answer is D.
Type of basic financial statements consist of balance sheet and income statement, statement of retained earning and statement of cash flows.

946. An estimation of relationship between one independent variable and dependent variable is known as

simple regression

Two way regression

One variable series

multiple regression

✅ The correct answer is A.
An estimation of relationship between one independent variable and dependent variable is known as simple regression. Simple linear regression is a statistical method that allows us to summarize and study relationships between two continuous (quantitative) variables.

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