Administrator, Author at GetMCQs

2751. Which of the following permits the transmission of a bill, along with payment of that bill, to be conducted over the Internet?

financial cybermediary

electronic check

electronic bill presentment and payment

all of the above

✅ The correct answer is C.
Electronic bill presentment and payment permits the transmission of a bill, along with payment of that bill, to be conducted over the Internet. Electronic Bill Payment & Presentment (EBPP) is a process, which companies use to collect payments via the Internet, direct dial access, Automated Teller Machine (ATM), or other electronic method. Electronic Bill Payment & Presentment is a core component of many financial institutions’ online banking offerings.

2752. A model for optimizing the selection of securities is the ______ model.

Miller-Orr

Black-Sholes

Markowitz

Gordon

✅ The correct answer is C.
A model for optimizing the selection of securities is the Markowitz model. Harry Markowitz model (HM model), also known as Mean-Variance Model because it is based on the expected returns (mean) and the standard deviation (variance) of different portfolios, helps to make the most efficient selection by analyzing various portfolios of the given assets.

2753. The maximum rate prescribed under IGST now is _______.

12%

18%

28%

✅ The correct answer is D.

2754. Variable Life Insurance is a kind of _________ Insurance.

Whole life

Money back

Endowment

Term

✅ The correct answer is A.
Variable Life Insurance is a kind of Whole life Insurance. Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash value account, which is invested in a number of sub-accounts available in the policy. A sub-account acts similar to a mutual fund, except it’s only available within a variable life insurance policy.

2756. A process costing system for J Co used an input of 3,500Kg of materials at Rs20 per Kg and labour hours of 2,750 at Rs 25 per hour. Normal loss is 20% and losses can be sold at a scrap value of Rs5 per Kg. Output was 2,950 Kg. What is the value of the output?

Rs 142,485

Rs 146,183

Rs 149,746

Rs 152,986

✅ The correct answer is A.

2757. Which of the following cost curves is never U-shaped?

Average cost curve

Marginal cost curve

Average variable cost curve

Average fixed cost curve

✅ The correct answer is D.
Average fixed cost curve is never U-shaped. The average fixed costs AFC curve is downward sloping because fixed costs are distributed over a larger volume when the quantity produced increases.

2739. Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as

relevant purchase order costs

relevant inventory carrying costs

irrelevant inventory carrying costs

relevant opportunity cost of capital

✅ The correct answer is D.
Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as relevant opportunity cost of capital.

2740. Which of the following is/are the problem(s) encountered in financial statement analysis?

Development of benchmarks

Window dressing

Interpretation of results

All of the above

✅ The correct answer is D.
Development of benchmarks, Window dressing and Interpretation of results are the problems encountered in financial statement analysis.

255. Gross profit is equal to

Opening stock + purchases – closing stock

Net profit – expenses

Sales – Closing stock + purchases

Sales – Cost of goods sold

✅ The correct answer is D.
Gross profit is equal to Sales – Cost of goods sold.

2744. If static budget amount is $9000, flexible budget amount is $20000, then sales volume variance will be

$29,000

$11,000

$15,000

$10,000

✅ The correct answer is B.
Sales volume variance = Flexible budget – Static budget
= $20000 – $9000 = $11,000

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