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2977. Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate

normal spoilage rates

abnormal spoilage rates

normal scrap rates

abnormal scrap rates

✅ The correct answer is A.
Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate normal spoilage rates. The normal spoilage will be calculated as the total number of spoiled units, divided by the total units produced, and multiplied by 100.

2979. Which of the following country is the first one to implement GST?

USA

France

China

Switzerland

✅ The correct answer is B.
France implemented GST in 1954.

2980. If conversion cost is $25000 and direct manufacturing labour cost is $17000, then manufacturing overhead cost would be

$14,700

$68,000

$8,000

$42,000

✅ The correct answer is C.
Manufacturing overhead cost = Conversion cost – Direct manufacturing labour cost
= $25000 – $17000 = $8,000

285. Which of the following account will be credited when a typewriter is sold that has been used in the office?

Office equipment account

Cash account

Sales account

Purchase account

✅ The correct answer is A.
Office equipment account will be credited when a typewriter is sold that has been used in the office.

286. The trade discount on purchases is recorded

When it is received

When the inventory is purchased

When the inventory is sold

Not at all recorded in the books

✅ The correct answer is D.
The trade discount on purchases are not all recorded in the books. Trade discount is not separately shown in the books of accounts, and all amounts recorded in a purchases or sales book are done in the net amount only.

2983. Most suitable basis for apportioning insurance of machine would be:

Floor Area

Value of Machines

No of Workers

No of Machines

✅ The correct answer is B.
Most suitable basis for apportioning insurance of machine would be Value of Machines.

287. Which of the following is non-profit organization?

Sole proprietorship

Partnership

Limited company

Trust

✅ The correct answer is D.
Trust is non-profit organization. A nonprofit organization is a business that has been granted tax-exempt status by the Internal Revenue Service (IRS) because it furthers a social cause and provides a public benefit.

2986. Difference between actual return on stock and predicted return is considered as

probability error

actual error

prediction error

random error

✅ The correct answer is D.
Difference between actual return on stock and predicted return is considered as random error. Random error causes one measurement to differ slightly from the next. It comes from unpredictable changes during an experiment.

2988. Preferred dividend is divided for required rate of return to calculate

value of number of shares

value of equity

value of preferred stock

value of common stock

✅ The correct answer is C.
Preferred dividend is divided for required rate of return to calculate value of preferred stock. The value of a preferred stock equals the present value of its future dividend payments discounted at the required rate of return of the stock. In most cases the preferred stock is perpetual in nature, hence the price of a share of preferred stock equals the periodic dividend divided by the required rate of return.

2990. Prices of bonds will be increased if interest rates

equals

lump sum declines

rises

declines

✅ The correct answer is D.
Prices of bonds will be increased if interest rates declines. Bond price is the present discounted value of future cash stream generated by a bond. It refers to the sum of the present values of all likely coupon payments plus the present value of the par value at maturity.

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