Administrator, Author at GetMCQs

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.

2541. Which among the following can be categorised under contingency products?

Bank deposits

Life insurance

Bonds

✅ The correct answer is B.
Life insurance can be categorised under contingency products. If there is no contingency, no payment is made. In life insurance contract, payment is certain because the death or the expiry of term will certainly occur.

2522. Trading place where traders meet one another to communicate is classified as

outcry auction system

outcry system

face to face communication

money communication

✅ The correct answer is A.
Trading place where traders meet one another to communicate is classified as outcry auction system. Open outcry is a method of verbal and hand signal communication used by traders at stock and futures exchanges. Signals and shouts convey trading information, intentions, and acceptance in the trading pits.

2523. Goods directly involved in the production process are known as _________.

MRO goods

procured goods

indirect goods

direct goods

✅ The correct answer is D.
Goods directly involved in the production process are known as direct goods. Direct goods and services are purchases that are directly related to the production of the particular good or service that is being offered.

2510. Assignee can do another _ but cannot do _

Nomination, Assignment

Nomination, Surrender

Assignment, Foreclosure

Assignment, Nomination

✅ The correct answer is D.
Assignee can do another Assignment but cannot do Nomination.

2511. An internal rate of return in capital budgeting can be modified to make it representative of

relative outflow

relative inflow

relative cost

relative profitability

✅ The correct answer is D.
An internal rate of return in capital budgeting can be modified to make it representative of relative profitability.

2512. Which type of adding machine provides a printed record?

Listing machine

Non-listing machine

Numbering machine

Stamping matching

✅ The correct answer is A.
Listing machine type of adding machine provides a printed record. Under this machine, the grand total of all entries is printed on a sheet of paper after the recording of all entries are over. Thus it gives a printed record of the items and its total.

239. A recovery of bad debt

increases net income

decreases net income

increases gross profit

increases gross profit and net income

✅ The correct answer is A.
A recovery of bad debt increases net income. Bad debt recovery is a payment received for a debt that was written off and considered uncollectible. The receivable may come in the form of a loan, credit line, or any other accounts receivable. Because it generally generates a loss when it is written off, bad debt recovery usually produces income.

2516. Pick out the incorrect sentence.

Underwriting is risk assessment in a proposal on the life of the proposer for offering him life cover

Prevention of selection against the insurer is the purpose of underwriting

Underwriting is a needless exercise in today’s environment of inadequate coverage of population for life insurance

Underwriting process defines and determines the premium chargeable on the proposal for covering risk

✅ The correct answer is C.
Underwriting is a needed exercise in today’s environment of inadequate coverage of population for life insurance.

2518. Which bank has started as a private shareholders bank, mostly by European shareholders?

Bank of India

Bank of Baroda

Dena Bank

Imperial Bank of India

✅ The correct answer is D.
Imperial Bank of India has started as a private shareholders bank, mostly by European shareholders.

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