Author name: Administrator

2506. Having defined working capital as current assets, it can be further classified according to __________.

Financing method and time
rate of return and financing method
time and rate of return
components and time
✅ The correct answer is D.
Having defined working capital as current assets, it can be further classified according to components and time. Working capital is a financial metric which represents operating liquidity available to a business, organisation or other entity, including governmental entities.

2507. In proper capital budgeting analysis we evaluate incremental

accounting income
cash flow
earnings
operating profit
✅ The correct answer is B.
In proper capital budgeting analysis we evaluate incremental cash flow. Capital budgeting, and investment appraisal, is the planning process used to determine whether an organization’s long term investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm’s capitalization structure.

2508. Non-economic activities aim at __________.

social service
profit maximization
consumer satisfaction
wealth
✅ The correct answer is A.
Non-economic activities aim at social service. Non-economic activity is an activity performed gladly, with the aim of providing services to others without any regard to monetary gain. Social or psychological, i.e. out of love, affection, etc.

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.
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