Author name: Administrator

484. Who among the following is best advised to purchase a term plan?

An individual who needs money at the end of insurance term
An individual who needs insurance and has a high budget
An individual who needs insurance but has a low budget
An individual who needs an insurance product that gives high returns
✅ The correct answer is C.
An individual who needs insurance but has a low budget is advised to purchase a term plan. Term plans are beneficial for those who want higher coverage at low premium rates, providing financial protection for their family in case they are not around.

488. Which of the following item of expenses will not appear in cost accounting.

Direct material cost
Factory overheads
Selling Expenses
Loss on sale of fixed assets
✅ The correct answer is D.
Loss on sale of fixed assets will not appear in cost accounting. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.

490. Which of the below can be attributed to moral hazard?

Increased risky behaviour following the purchase of insurance
Increased risky behaviour prior to the purchase of insurance
Decreased risky behaviour following the purchase of insurance
Engaging in criminal acts post being insured
✅ The correct answer is A.
Increased risky behaviour following the purchase of insurance can be attributed to moral hazard. Moral hazard is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. It arises when both the parties have incomplete information about each other.

492. Protective covenant devised in market to reduce event risk and to control debt cost is classified as

super poison covenant
super poison put
super poison call
super poison redemption
✅ The correct answer is B.
Protective covenant devised in market to reduce event risk and to control debt cost is classified as super poison put. Protective covenant. A part of an indenture or loan agreement that limits certain actions a company may take during the term of the loan to protect the lender’s interests.

494. Cost of previous department is a part of

transferred-in costs
transferred-out costs
FIFO costs
LIFO costs
✅ The correct answer is A.
Cost of previous department is a part of transferred-in costs. Transferred-in costs are costs accumulated during the upstream production processes within a company. Transferred-in costs are the costs accumulated by the product at any given point in production.
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