Administrator

64. Mathematical relationships exist between operating and financing activities that affect master budget are called

by
A) math plan model
B) financial planning models
C) operating plan models
D) master plan models
✅ ANSWER: B
Mathematical relationships exist between operating and financing activities that affect master budget are called financial planning models. A financial planning model uses certain elements to create a future financial plan for a company.

67. Long period of bond maturity leads to

by
A) more price change
B) stable prices
C) standing prices
D) mature prices
✅ ANSWER: A
Long period of bond maturity leads to more price change. With bonds, term to maturity is the time between when the bond is issued and when it matures, known as its maturity date, at which time the issuer must redeem the bond by paying the principal or face value.

70. The set of applications and technologies that allow users to create, edit, and distribute content online is known as______.

by
A) Internet
B) social networking
C) virtual life
D) Web 2.0
✅ ANSWER: D
The set of applications and technologies that allow users to create, edit, and distribute content online is known as Web 2.0. Web 2.0 Websites allow users to do more than just retrieve information.

79. During planning period, a marginal cost for raising a new debt is classified as

by
A) debt cost
B) relevant cost
C) borrowing cost
D) embedded cost
✅ ANSWER: B
During planning period, a marginal cost for raising a new debt is classified as relevant cost. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred when making business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process.

46. Identify the correct statement

by
A) Bonus is not allowed on surrender of a policy
B) In compound reversionary bonus it is a percentage of basic benefit and already attached bonus
C) Terminal bonus and compound bonus are one and the same
D) Persistence bonus is allowed by the insurer at its discretion in certain cases
✅ ANSWER: B
In compound reversionary bonus it is a percentage of basic benefit and already attached bonus. Compound reversionary bonuses are a percentage rate, which apply to the sum assured in respect of the basic policy benefit, and to the reversionary bonuses already attached to the policy. The difference is in the way the bonuses are accrued.

37. Values of assets purchased or liabilities recorded as recorded by bookkeepers are considered as

by
A) appreciated values
B) depreciated values
C) market values
D) book values
✅ ANSWER: D
Values of assets purchased or liabilities recorded as recorded by bookkeepers are considered as book values. Book value is also the net asset value of a company calculated as total assets minus intangible assets (patents, goodwill) and liabilities.

6. The claims against the company not acknowledged as debts are shown as

by
A) Current liabilities
B) Loans and advances
C) Notes to balance sheet
D) Director’s report
✅ ANSWER: C
The claims against the company not acknowledged as debts are shown as notes to balance sheet. All claims which the company does not acknowledge as debts should be disclosed. Claims against the company by the labour union for additional wages, compensation, etc. come under this category.