Author name: Administrator

749. “Calculate the value of closing stock from the following according to LIFO method: 1st January, 20XX: Opening balance: 50 units @ Rs 4 Receipts: 5th January, 20XX: 100 units @ Rs 5 12th January, 20XX: 200 units @ Rs 4.50 Issues: 2nd January, 20XX: 30 units 18th January, 20XX: 150 units”

Rs. 765
Rs. 805
Rs. 786
Rs. 700
✅ The correct answer is B.
Calculation of Closing Stock:
1st January, 20XX: Opening balance: 50 units @ Rs 4 = 50 × 4 = Rs. 200
Issue: 2nd January, 20XX: 30 units = 30 × 4 = Rs. 120
Remaining Stock = (50 – 30) × 4 = Rs. 80
Reciept: 5th January, 20XX: 100 units @ Rs 5 = 100 × 5 = Rs. 500
Reciept: 12th January, 20XX: 200 units @ Rs 4.50 = 200 × 4.5 = Rs. 900
Remaining Stock = Rs. 80 + Rs. 500 + Rs. 900 = Rs. 1480
Issue: 18th January, 20XX: 150 units = (150 × 4.5) = Rs. 675
Remaining Stock = (50 × 4.5) + (100 × 5) + (20 × 4) = Rs. 805.

750. Positive minimum risk portfolio of any security shows that market security sold

equal to original price
equal to sum of stocks
less than original price
greater than original price
✅ The correct answer is D.
Positive minimum risk portfolio of any security shows that market security sold greater than original price. A minimum variance portfolio indicates a well-diversified portfolio that consists of individually risky assets, which are hedged when traded together, resulting in the lowest possible risk for the rate of expected return.

751. Coupon rate of convertible bond is

higher
lower
variable
stable
✅ The correct answer is B.
Coupon rate of convertible bond is lower. Investors will generally accept a lower coupon rate on a convertible bond, compared with the coupon rate on an otherwise identical regular bond, because of its conversion feature.

68. Opening inventory + Net purchases = ?

Ending inventory
Closing stock
Cost of goods manufactured
Cost of goods available for sale
✅ The correct answer is D.
Opening inventory + Net purchases = Cost of goods available for sale.
The cost of goods available for sale equals the beginning value of inventory plus the cost of goods purchased.

755. Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as

financial instruments
capital assets
primary assets
competitive instruments
✅ The correct answer is A.
Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as financial instruments. Financial instruments are assets that can be traded, or they can also be seen as packages of capital that may be traded. Most types of financial instruments provide efficient flow and transfer of capital all throughout the world’s investors.

759. Centers such as revenue, cost, investment and profit all are known as

marketing center
financial center
responsibility center
planning center
✅ The correct answer is C.
Centers such as revenue, cost, investment and profit all are known as responsibility center. A responsibility center is a functional entity within a business that has its own goals and objectives, dedicated staff, policies and procedures, and financial reports.
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