Administrator, Author at GetMCQs

2943. Survey and inspection of a property is essential

Before acceptance of risk to assess the risk for rating purpose

To find out the true value of asset

To find out how the asset came into the owner’s possession

To know whether any other property in the neighbourhood can be insured

✅ The correct answer is A.
Survey and inspection of a property is essential before the acceptance of risk to assess the risk for rating purpose. A survey is an inspection of a property.

2917. Cost of equity which is raised by reinvesting earnings internally must be higher than the

cost of initial offering

cost of new common equity

cost of preferred equity

cost of floatation

✅ The correct answer is B.
Cost of equity which is raised by reinvesting earnings internally must be higher than the cost of new common equity. The cost of equity is the return a company requires to decide if an investment meets capital return requirements.

2918. Which of the following information is not contained in a Medical Examiner’s Report?

Previous policy particulars

Height, weight, BP of the proponent

Both A & B

None of the above

✅ The correct answer is A.
Previous policy particulars information is not contained in a Medical Examiner’s Report.

274. Which of the following is true about a trial balance?

It lists down the balances of accounts

It lists down the balances of a balance sheet

It is a kind of financial statement

It is not a part of accounting cycle

✅ The correct answer is A.
Trial balance It lists down the balances of accounts. The debit balance values will be listed in the debit column of the trial balance and the credit value balance will be listed in the credit column.

275. Postdated cheques are considered as

Cash

Bank balance

Accounts receivable

Cash reserve

✅ The correct answer is C.
Postdated cheques are considered as Accounts receivable. If the postdated check was received as payment on accounts receivable, the accounts receivable balance is not reduced until the date of the check.

2923. Which of the following are incorrect? 1. Mutuality means funds from various individuals are combined. 2. Diversification means spreading out funds to various destinations.

1 is correct

2 is correct

Both A & B

None of the above is correct

✅ The correct answer is D.
Mutuality means flow of resources from many to one. Diversification is a risk management technique that mixes a wide variety of investments within a portfolio.

2924. The use of preference share capital as against debt finance.

Reduces DFL

Increases DFL

Increases financial risk

Both a and b

✅ The correct answer is A.
The use of preference share capital as against debt finance reduces DFL. A degree of financial leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure.

2925. If the income elasticity is greater than one, the commodity is

Necessity item

Luxury item

Inferior good

None

✅ The correct answer is B.
If the income elasticity is greater than one, the commodity is Luxury item. Luxury goods represent normal goods associated with income elasticities of demand greater than one. Consumers will buy proportionately more of a particular good compared to a percentage change in their income.

2926. According to exercise value and option price, market value of option will be zero when

stock price is maximum

option price is zero

stock price is zero

stock price is minimum

✅ The correct answer is C.
According to exercise value and option price, market value of option will be zero when stock price is zero. The strike price is defined as the price at which the holder of an options can buy (in the case of a call option) or sell (in the case of a put option) the underlying security when the option is exercised. Hence, strike price is also known as exercise price.

2927. _________ Layout based on similarity of work.

Group

Process

Open

Closed

✅ The correct answer is A.
Group Layout based on similarity of work. Group layout is a kind of layout where persons doing similar activities or machines doing similar operations are grouped together.

Author name: Administrator