Author name: Administrator

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.

59. Which one of the following concepts states that the publication or presentation of financial statements should not be delayed?

Objectivity concept
Timing concept
Timeliness concept
Reliability concept
✅ The correct answer is C.
Timeliness concept states that the publication or presentation of financial statements should not be delayed. Timeliness principle in accounting refers to the need for accounting information to be presented to the users in time to fulfill their decision making needs.

649. In Monopoly at various output levels

AR = MR
AR < MR
AR > MR
None of the above
✅ The correct answer is C.
A firm under monopoly faces a downward sloping demand curve or average revenue curve. In monopoly, since average revenue falls as more units of output are sold, the marginal revenue is less than the average revenue. In other words, under monopoly the MR curve lies below the AR curve.

652. Identify the statement which is not correct. Insurance agent should _________.

Indicate the scale of commission if asked by the customer
Share the commission by way of rebate
Disclose his licence on demand
Indicate the premium to be charged
✅ The correct answer is B.
Insurance agent should not share the commission by way of rebate. This practice is illegal and totally against the laws of Insurance Act and SEBI. The agent can even face cancellation of his license if he is found to share his commission.
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