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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.

742. Who stated explicitly for the first time, the Law of Comparative Costs?

David Ricardo
Adam Smith
James Mill
Thomas Mun
✅ The correct answer is A.
David Ricardo stated explicitly for the first time, the Law of Comparative Costs. Absolute advantage refers to the uncontested superiority of a country to produce a particular good better. Comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.

757. Which of the below statement is correct?

Life insurance is sold, not bought
Life insurance is bought, not sold
Life insurance is neither bought nor sold; it is a necessity and hence should be bought by every individual
None of the above
✅ The correct answer is A.
Is it true Unlike tangible goods which can be seen and experienced before purchase , very few people feel the need for life insurance. Hence, Life insurance is sold, not bought.

731. Function used to measure decline in labour hours per unit as units of production increases is called

fixed curve
learning curve
linear curve
mixed curve
✅ The correct answer is B.
Function used to measure decline in labour hours per unit as units of production increases is called learning curve. A learning curve is a concept that graphically depicts the relationship between the cost and output over a defined period of time, normally to represent the repetitive task of an employee or worker.

733. An annual rate of 16% if quoted by credit card issuer usually a bank is classified as

loan rate of return
local rate of return
annual percentage rate
annual rate of return
✅ The correct answer is C.
An annual rate of 16% if quoted by credit card issuer usually a bank is classified as annual percentage rate. An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan.

735. Higher level of production leads to

higher repair cost
higher setup cost
lower repair cost
higher setup cost
✅ The correct answer is A.
Higher level of production leads to higher repair cost.

737. A discount rate which equals to present value of TV to project cost present value is classified as

negative internal rate of return
modified internal rate of return
existed internal rate of return
relative rate of return
✅ The correct answer is B.
A discount rate which equals to present value of TV to project cost present value is classified as modified internal rate of return. The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
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