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2731. Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as

discounted payback period

discounted rate of return

discounted cash flows

discounted project cost

✅ The correct answer is A.
Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as discounted payback period.

2732. Total utility is maximum when

Marginal utility is zero

Marginal utility is at its highest point

Marginal utility is equal to average

Average utility is maximum

✅ The correct answer is A.
Total utility is maximum when Marginal utility is zero. It is based in the law of diminishing marginal utility which says ‘as more and more units of a good are consumed, MU i.e level of satisfaction derived from each successive unit goes on falling because desire for that commodity tend to fall.

254. _____ will be credited if goods are given as charity

Cash

Charity

Purchases

Sales

✅ The correct answer is C.
Purchases will be credited if goods are given as charity. When accounting for goods given as charity, purchases are reduced with the exact cost of goods contributed. The amount is reduced from purchases in the trading account. It is shown as an expense on the debit side of the income statement.

2734. Which of the following is not a tangible good?

Life Insurance

A television set

Iphone

A farmhouse

✅ The correct answer is A.
Life Insurance is not a tangible good. Because life insurance is not a tangible asset, it cannot be counted against you for things such as food stamps or other assistance programs.

2736. Bonds issue by corporations which are more risky than preferred stocks are classified as

leases

preferred stocks

common stocks

corporate stocks

✅ The correct answer is C.
Common stock is a form of corporate equity ownership, a type of security.

2738. In assumptions of specific analysis, normality of residuals is satisfied with use of

real price data

real cost data

multiplier data

divisional data

✅ The correct answer is B.
In assumptions of specific analysis, normality of residuals is satisfied with use of real cost data.

2720. Contango charge is paid by __________.

bull speculator to bear speculator

bear speculator to bull speculator

lame duck to bull speculator

stag to under writer

✅ The correct answer is A.
Contango charge is paid by bull speculator to bear speculator. When the spot price is higher than the futures price, the market is said to be in backwardation. It is often called ‘normal backwardation’ as the futures buyer is rewarded for risk he takes off the producer. If the spot price is lower than the futures price, the market is in contango”.

2722. Individual variable coefficient’s multicollinearity leads to

decrease in variance

increase in variance error

increase in standard error

decrease in standard error

✅ The correct answer is C.
Individual variable coefficient’s multicollinearity leads to increase in standard error.

2708. Better administration of budget in budgeting plans require

intelligent interpretations

participation

persuasion

all of above

✅ The correct answer is D.
Better administration of budget in budgeting plans require intelligent interpretations, participation and persuasion.

2710. In activity based costing system, description of activity can be classified as

activity list

activity dictionary

active purpose

both a and b

✅ The correct answer is D.
In activity based costing system, description of activity can be classified as activity list and activity dictionary.

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