Administrator

2837. Non-systematic risk is also known as_____________.

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riskless
market risk
random risk
company-specific risk
✅ The correct answer is D.
Non-systematic risk is also known as company-specific risk. Specific risk is a risk that affects a minimal number of assets. Specific risk, as its name implies, relates to risks that are very specific to a company or small group of companies. This type of risk is the opposite of overall market risk or systematic risk. Specific risk is also referred to as “unsystematic risk” or “diversifiable risk.”

2844. Projects which are mutually exclusive but different on scale of production or time of completion then the

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external return method
net present value of method
net future value method
internal return method
✅ The correct answer is B.
Projects which are mutually exclusive but different on scale of production or time of completion then the net present value of method. Net Present Value (NPV) is defined as the present value of the future net cash flows from an investment project.

2845. This is a point at which the store keeper should initiate purchase requisition for fresh supply It is ________.

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maximum stock level
minimum stock level
reorder level
average stock level
✅ The correct answer is C.
This is a point at which the store keeper should initiate purchase requisition for fresh supply It is reorder level. Re-order level is a level of material at which the storekeeper should initiate the purchase requisition for fresh supplies. When the stock-in-hand comes down to the re-ordering level, it is an indication that an action should be taken for replenishment or purchase.

2850. Budget, which predicts effect of given level of operations on a cash position is classified as

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market budget
price schedule
planned schedule
cash budget
✅ The correct answer is D.
Budget, which predicts effect of given level of operations on a cash position is classified as cash budget. A cash budget is an estimation of the cash inflows and outflows for a business over a specific period of time. This budget is used to assess whether the entity has sufficient cash to operate.

2852. During the revival of a lapsed policy, which of the below aspect is considered most significant by the insurance company? Choose the most appropriate option.

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Evidence of insurability at revival
Revival of the policy leading to increase in risk for the insurance company
Payment of unpaid premiums with interest
Insured submitting the revival application within a specified time frame
✅ The correct answer is A.
During the revival of a lapsed policy, Evidence of insurability at revival is considered most significant by the insurance company. A lapsed policy means that the benefit of insurance will not be available to protect the financial interest of the dependants in the event of the death of the insured.

2856. Cost of idle time arising due to non availability of raw material is _______.

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charged to costing profit and loss account
charged to financial profit and loss account
charged to factory overhead
recovered by inflating the wage rate
✅ The correct answer is A.
Cost of idle time arising due to non availability of raw material is charged to costing profit and loss account. The cost of idle facilities for reasons such as trade depression, shortage of demand, etc. should be written off to Costing Profit and Loss Account.

2838. An increasing in interest rate leads to decline in value of

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junk bonds
outstanding bonds
standing bonds
premium bonds
✅ The correct answer is B.
An increasing in interest rate leads to decline in value of outstanding bonds. Outstanding Bonds means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior prepayments of Maximum Special Taxes.

2840. The amount of the temporary working capital __________.

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keeps on fluctuating from time to time
remains constant for all times
financed through long term services
none of the above.
✅ The correct answer is A.
The amount of the temporary working capital keeps on fluctuating from time to time. Temporary working capital (TWC) is the temporary fluctuation of networking capital over and above the permanent working capital.