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2766. Net investment in operating capital is Rs 5000 and net operating profit after taxes is Rs 8000 then free cash flow would be

Rs 13,000.00

-Rs 3,000.00

Rs 3,000.00

-Rs 13,000.00

✅ The correct answer is C.
Free cash flow = Operating profit after tax – Net investment in operating capital
= 8000 – 5000 = Rs. 3000.

258. Cash book records

Cash payments

Cash Receipts

Cash payments and cash receipts

Neither cash payments nor cash receipts

✅ The correct answer is C.
Cash book records Cash payments and cash receipts. A Cash Book is a type of subsidiary book where cash (or) bank receipts and cash (or) bank payments made during a period are recorded in a chronological order.

259. Double entry accounting system includes

Accrual accounting only

Cash accounting only

Both cash and accrual accounting

None of the above

✅ The correct answer is C.
Double entry accounting system includes both cash and accrual accounting. Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts.

2758. One characteristic not typical of oligopolistic industry is

Too much importance to non-price competition

Price leadership

Horizontal demand curve

A small number of firms in the industry

✅ The correct answer is C.
One characteristic not typical of oligopolistic industry is Horizontal demand curve. The horizontal demand curve indicates that the elasticity of demand for the good is perfectly elastic. This means that if any individual firm charged a price slightly above market price, it would not sell any products.

2759. In capital budgeting, an internal rate of return of project is classified as its

external rate of return

internal rate of return

positive rate of return

negative rate of return

✅ The correct answer is B.
In capital budgeting, an internal rate of return of project is classified as its internal rate of return. Internal rate of return (IRR) is the interest rate at which the NPV of all the cash flows (both positive and negative) from a project or an investment equals zero.

2760. Intangible assets such as copyrights, trademarks and patents are applicable for

depreciation

amortization

stock amortization

perishable assets

✅ The correct answer is B.
Intangible assets such as copyrights, trademarks and patents are applicable for amortization. Amortization is an accounting technique used to periodically lower the book value of a loan or intangible asset over a set period of time.

2761. A model which regresses return of stock against return of market is classified as

regression model

market model

error model

risk free model

✅ The correct answer is B.
A model which regresses return of stock against return of market is classified as market mode.

2765. When marginal is negative, it must be true that

The average is negative

The average is decreasing

The total is negative

The total is decreasing

✅ The correct answer is D.
When marginal is negative, it must be true that the total is decreasing. Marginal utility may decrease into negative utility, as it may become entirely unfavorable to consume another unit of any product.

2767. Prime cost is $50000 and direct manufacturing labour is $10000, then direct material cost will be

$40,000

$60,000

$52,000

$20,000

✅ The correct answer is A.
Direct material cost = Prime cost – Direct manufacturing labour
= $50000 – $10000 = $40,000

2769. A person employed to act on behalf of another in dealing with a third person is called _________

Lawyer

Broker

Employee

Agent

✅ The correct answer is D.
A person employed to act on behalf of another in dealing with a third person is called Agent. An agent is a person employed to do any act for another, or to represent another in dealings with third persons.

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