Administrator

2646. Which plan is suitable for accumulation of specific sum of money?

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Whole life
Endowment
Money back
Term insurance
✅ The correct answer is B.
An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its ‘maturity’) or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.

2648. What is the legal protection afforded an expression of an idea, such as a song, video game, and some types of proprietary documents?

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Ethics
Intellectual property
Copyright
Fair Use Doctrine
✅ The correct answer is C.
Copyright is the legal protection afforded an expression of an idea, such as a song, video game, and some types of proprietary documents. Copyright refers to the legal right of the owner of intellectual property. In simpler terms, copyright is the right to copy.

2656. The long run is a

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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.

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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.

246. Which of the following is the most common cause of bad debt?

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Debtor refusal to repayment
Debtor left the country
Debtor committed a crime
Debtor declared to be a bankrupt
✅ The correct answer is D.
Debtor declared to be a bankrupt is the most common cause of bad debt. A bad debt is a monetary amount owed to a creditor that is unlikely to be paid and, or which the creditor is not willing to take action to collect for various reasons, often due to the debtor not having the money to pay, for example due to a company going into liquidation or insolvency.