Author name: Administrator

672. Which is not provided in a Prospectus?

Terms & conditions
Scope of benefits
Documents required for claim
Entitlements
✅ The correct answer is C.
Documents required for claim is not provided in a Prospectus.

673. Which is true of Current Money method of dividend payment?

Returns depend on when the investment was made
Different investment blocks get different returns
It is also called segmented or investment block method
All of the above
✅ The correct answer is D.
All the above are true regarding current money method of dividend payment.
Returns depend on when the investment was made, Different investment blocks get different returns and It is also called segmented or investment block method.

674. Expenditure over and above prime cost is known as ________.

overhead
factory cost
cost of sales
cost of production
✅ The correct answer is A.
Expenditure over and above prime cost is known as overhead. Overhead is those costs required to run a business, but which cannot be directly attributed to any specific business activity, product, or service.

64. Difference of total of debit and credit side of the trial balance is transferred to

Suspense A/c
Difference A/c
P & L A/c
Trading A/c
✅ The correct answer is A.
Difference of total of debit and credit side of the trial balance is transferred to Suspense A/c. Suspense accounts are used when your trial balance is out of balance or when you have an unidentified transaction. The suspense account is a general ledger account that acts as a holding account until the error is discovered or the unknown transaction is identified.

678. Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as

incremental costing system
split off costing system
inventoriable costing system
operation costing system
✅ The correct answer is D.
Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as operation costing system. Operation costing, also known as service costing, is a costing method that combines process costing and job costing.

662. Discretionary income is not maximised by

Debt restructuring
Transfer of loans
Restructuring of investment
Purchase of insurance policy
✅ The correct answer is D.
Discretionary income is not maximised by purchase of insurance policy. Some people use credit cards to purchase discretionary goods, but increasing personal debt is not the same as having discretionary income.
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