Author name: Administrator

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.

658. An insurance agent is typically a representative of

Customer
Insurance company
Government
IRDA
✅ The correct answer is B.
An insurance agent is a representative of insurance company. Such agents are required to be licensed in the states in which they do business as well as with the specific companies they represent. In contrast to an insurance agent, an insurance broker represents a client.

597. Excess working capital results in ________.

Block of cash
Loosing interests
Lack of production
Lack of smooth flow of production
✅ The correct answer is A.
Excess working capital results in Block of cash. Excess working capital overall, though, is bad because it means that the amount of money available within the company is much more than what it needs for its operations.

600. Markets dealing with residential loans, industry real estate loans, agricultural loans and commercial loans are called

residential markets
mortgage markets
agriculture markets
commercial markets
✅ The correct answer is B.
Markets dealing with residential loans, industry real estate loans, agricultural loans and commercial loans are called mortgage markets. The mortgage market can seem complicated to the uninitiated. The fact is that it is not as complicated as it is ever-changing. Most people have no idea how the market works. By understanding this, you will get a better idea about mortgage programs that are offered by certain lenders. Armed with this new information, you can make an informed decision in your quest for the perfect mortgage.
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