Administrator

2961. Model which refers possibility for management to conduct sensitivity analysis can be categorized under

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investment planning models
financial planning models
cost planning models
revenues forecast models
✅ The correct answer is B.
Model which refers possibility for management to conduct sensitivity analysis can be categorized under financial planning models. A financial planning model uses certain elements to create a future financial plan for a company.

2963. Future value of interest if it is calculated two times a year can be a classified as

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semi-annual discounting
annual discounting
annual compounding
semi-annual compounding
✅ The correct answer is D.
Future value of interest if it is calculated two times a year can be a classified as semi-annual compounding. A semiannual event happens twice a year, typically every six months.

282. A cash book that is used to record the small payments of cash is generally referred to as

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Simple cash book
Two columns cash book
Three columns cash book
Petty cash book
✅ The correct answer is D.
A cash book that is used to record the small payments of cash is generally referred to as Petty cash book. Petty cash book can be expressed as a formal summarization of the petty cash expenditures which refers to the day-to-day normal expenditures of the business which is not related to the direct line of the business.

2967. If beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be

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1800 units
2300 units
10300 units
1500 units
✅ The correct answer is B.
Equivalent units in current period = Beginning work in process equivalent units + Work done in current period equivalent units – Ending work in process equivalent units
= 2500 + 3800 – 4000 = 2300 units

2960. Which of the following statement is correct?

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Endowment assurance has no saving element
Whole Life Plan has no saving element at all
Term Insurance has little or no saving element
Money Back plan has no savings element
✅ The correct answer is C.
Term Insurance has little or no saving element. In term policies if you stop paying the premium the risk cover ceases and the policy ends. Nothing is payable to you as there is no savings element in the policy.

2962. Identify the term of insurance that is depicted in the following scenario. Scenario: patient pays the health provider and is subsequently reimbursed by the health insurance company.

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Service Benefit
Direct Contracting
Indemnity
Casualty
✅ The correct answer is C.
Indemnity insurance protects against claims arising from possible negligence or failure to perform that result in a client’s financial loss or legal entanglement.

2964. What is correct in the following sentences?

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Claim is a demand on the insurer to honour contractual commitment to pay the policy money to the claimant
It s request made to the insurer by the claimant to settle payment
While in some claims, the contract comes to an end with payment in other cases the contract continues
All of the above
✅ The correct answer is D.
All the above statements are correct.
Claim is a demand on the insurer to honour contractual commitment to pay the policy money to the claimant, It s request made to the insurer by the claimant to settle payment and While in some claims, the contract comes to an end with payment in other cases the contract continues.

279. “Treating a revenue expenditure as a capital expenditure” is an example of

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Compensating error
Error of principle
Error of omission
Error of commission
✅ The correct answer is B.
“Treating a revenue expenditure as a capital expenditure” is an example of Error of principle. An error of principle is an accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting. An error of principle is a procedural error, meaning that the value recorded was the correct value but placed incorrectly.