Author name: Administrator

280. The cost of a small calculator is treated as an expense and not shown as an asset in a financial statement of a business entity due to

Materiality concept
Matching concept
Periodicity concept
Conservatism concept
✅ The correct answer is A.
The cost of a small calculator is treated as an expense and not shown as an asset in a financial statement of a business entity due to Materiality concept. The materiality concept refers to a situation where the financial information of a company is considered to be material from the point of view of the preparation of the financial statements if it has the potential to alter the view or opinion of a reasonable person.

2945. One-man-one-vote – is the principle adopted by ________.

Partnership
Joint Stock Companies
Co-operative Societies
Sole proprietorship
✅ The correct answer is C.
One-man-one-vote – is the principle adopted by Co-operative Societies. A cooperative society is formally used by people with limited means. The principle of one man one vote discourages members to invest large amounts in the society.

2948. In a standard insurance policy document, the standard provisions section will have information on which of the following?

Date of commencement, date of maturity and due date of last premium
Name of the nominee
The rights and privileges and other conditions which are applicable under the contract
The signature of the authorized signatory and policy stamp
✅ The correct answer is C.
In a standard insurance policy document, the standard provisions section will have information on the rights and privileges and other conditions which are applicable under the contract.

2950. Under perfect competition

AC=AVC
AR=AC
AR=MC
AR=MR
✅ The correct answer is D.
Under perfect competition AR=MR. If the market price is unaffected by variations in the firm’s output, then the firm’s demand curve, its AR curve and MR curve will coincide in the same horizontal line.

2951. Universal Life Insurance is associated with

Universal Life Insurance is associated with Germany
Universal Life plan was first introduced in the UK
France is the home of universal Life policies
USA is known for introducing such policies
✅ The correct answer is D.
Universal life insurance (often shortened to UL) is a type of cash value life insurance, sold primarily in the United States. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy, which is credited each month with interest.

2955. Which function is basis of control?

Planning
Organizing
Controlling
staffing
✅ The correct answer is A.
Planning is basis of control. Planning and controlling are closely related to each other. After a plan becomes operational, control is necessary to measure progress, to uncover deviations from the targets and to take corrective steps.

277. Accounts payable has ____ balance

Credit
Debit
Unfavorable
Favorable
✅ The correct answer is A.
Accounts payable has Credit balance. Since Accounts Payable is a liability account, it should have a credit balance.
Scroll to Top