Author name: Administrator

2660. Which of the following techniques of project appraisal does not consider the time value of money?

Benefit cost ratio
Net present value
Internal rate of return
Accounting Rate of Return
✅ The correct answer is D.
Accounting Rate of Return techniques of project appraisal does not consider the time value of money. Under this method, the asset’s expected accounting rate of return (ARR) is computed by dividing the expected incremental net operating income by the initial investment and then compared to the management’s desired rate of return to accept or reject a proposal.

2661. Which is not a component of ERP?

Legacy systems
Bolt on applications
Operational database
Cybersoft
✅ The correct answer is D.
Cybersoft is not a component of ERP. Cybersoft is a leading provider of innovative business software solutions, information technology and consulting services.

2662. Which of the following statements about privacy is true?

It is a moral right to be left alone
Only corporations and government need to be concerned about it
It has only just recently become a concern
It is most easily obtained on the Internet
✅ The correct answer is A.
Privacy is a moral right to be left alone. Privacy is the ability of an individual or group to seclude themselves, or information about themselves, and thereby express themselves selectively. The boundaries and content of what is considered private differ among cultures and individuals.

2668. In the weekly efficient market, the stock price reflects.

the company’s financial performance
the past price of the scrip
the demand for the scrip
the past price and traded volumes
✅ The correct answer is D.
In the weekly efficient market, the stock price reflects the past price and traded volumes. Weak form efficiency claims that past price movements, volume and earnings data do not affect a stock’s price and can’t be used to predict its future direction. Weak form efficiency is one of the three different degrees of efficient market hypothesis (EMH).

247. The main objective of providing depreciation is to

Calculate the true net profit
Compute the actual cash profit
Create funds for replacement of fixed assets
Reduce tax burden
✅ The correct answer is C.
The main objective of providing depreciation is to Create funds for replacement of fixed assets. The main objective of charging depreciation is to accumulate adequate fund to replace old asset with the new one after the useful life. Depreciation is charged to fixed assets which helps to show the current value of the asset.

2655. When a policy is said to lapse?

If premiums are paid within grace period
If premiums are paid after grace period
If premiums are not paid after grace period
If premiums are not paid within grace period
✅ The correct answer is D.
If premiums are not paid within grace period a policy is said to lapse. The typical grace period is 30 days. If the premium is unpaid even after the grace period, the policy would lapse. The process of reviving a policy varies depending on the time lapsed.

2656. The long run is a

Period of three years or longer
Period long enough to allow firms to change plant size and capacity
Period long enough to allow firm to make economic decisions
A period which affects larger than smaller firms
✅ The correct answer is B.
The period is long enough to allow firms to change plant size and capacity. The long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs.

2657. In case of joint products, the main objective of accounting of the cost is to apportion the joint costs incurred up to the split off point. For cost apportionment one company has chosen Physical Quantity Method. Three joint products ‘A’, ‘B’ and ‘C’ are produced in the same process. Up to the point of split off the total production of A, B and C is 60,000 kg, out of which ‘A’ produces 30,000 kg and joint costs are Rs 3,60,000. Joint costs allocated to product A is.

Rs 1,20,000
Rs 60,000
Rs 1,80,000
None of the these
✅ The correct answer is C.
Joint costs allocated to product A is:
360000 × 30000/60000 = Rs. 180000.
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