Administrator, Author at GetMCQs

240. Debit balance = Credit balance in a trial balance indicates that

No error in recording transactions

No error in posting entries to ledger accounts

Account balances are correct

Mathematically Capital + Liabilities = Assets

✅ The correct answer is D.
Debit balance = Credit balance in a trial balance indicates that Mathematically Capital + Liabilities = Assets.

2528. Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be

negative

zero

positive

independent

✅ The correct answer is B.
Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be zero.

2529. If flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be

$27,000

$15,000

$39,000

$49,000

✅ The correct answer is C.
Actual result = Flexible budget amount + Flexible budget variance
= $27000 + $12000 = $39,000

2530. Unbundling of life insurance products refers to

Correlation of life insurance with bonds

Correlation of life insurance with equities

Combination of protection with savings element

Separation of protection and savings element

✅ The correct answer is D.
Unbundling of life insurance products refers to Separation of protection and savings element.

241. The persons who sign Articles and Memorandum of the company and contribute in the initial share capital of the company are called

Subscribers

Shareholders

Managers

Directors

✅ The correct answer is A.
The persons who sign Articles and Memorandum of the company and contribute in the initial share capital of the company are called Subscribers. They are called subscribers because, as part of the company formation.

242. Reserve capital means

Part of subscribed uncalled capital

Accumulated profit

Part of Capital Reserve

Part of Capital Redemption Reserve

✅ The correct answer is A.
Reserve capital means Part of subscribed uncalled capital. Reserve Capital is defined as a part of subscribed uncalled capital, which will not be called up until and unless the company goes into liquidation.

2534. According to Black Scholes model, short term seller receives today price which

short term cash proceeds

proceeds in cheques

full cash proceeds

zero proceeds

✅ The correct answer is C.
According to Black Scholes model, short term seller receives today price which full cash proceeds. Proceeds are the cash received from the sale of goods or services and can be discussed as gross or net.

2535. Select the option that best describes a policy document.

It is evidence of the insurance contract

It is evidence of the interest expressed by the insured in buying an insurance policy from Co

It is evidence of the policy (procedures) followed by an insurance company when dealing with channel partners like banks, brokers and other entities

It is an acknowledgement slip issued by the insurance company on payment of the first premium

✅ The correct answer is A.
Policy document is a detailed document and it is the Evidence of the insurance contract which mentions all the terms and conditions of the insurance. The insured buys not the policy contract, but the right to the sum of money and its future delivery.

2537. Complete price transparency in a perfect information marketplace is necessary for ____________ to take effect.

Bertrand’s Law

the Law of Universal Prices

the Law of One Price

the Law of Perfect Commerce

✅ The correct answer is C.
Complete price transparency in a perfect information marketplace is necessary for the Law of One Price to take effect. The law of one price states that in the absence of trade frictions, and under conditions of free competition and price flexibility, identical goods sold in different locations must sell for the same price when prices are expressed in a common currency.

2539. “Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete. If 11,750completed units were transferred out, what was the closing inventory in Process B?”

Rs 6562.50

Rs 12,250.00

Rs 14,437.50

Rs 25,375.00

✅ The correct answer is C.

Author name: Administrator