Author name: Administrator

2480. Method uses for an estimation of cost of equity is classified as

market cash flow
future cash flow method
discounted cash flow method
present cash flow method
✅ The correct answer is C.
Method uses for an estimation of cost of equity is classified as discounted cash flow method. Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its future cash flows.

2481. To whom should licence fees be paid?

Controller of Insurance
The Insurer
The IRDA
None of the three
✅ The correct answer is A.
Licence fees should be paid to Controller of Insurance. The operation of the Insurance Broker License in India is regulated by regulations issued by IRDAI.

2483. Which is a type of Occupational pension?

Defined Benefit type
Defined contribution type
Both A & B
None of the above
✅ The correct answer is C.
Defined Benefit type and Defined contribution type is a type of Occupational pension.
A defined benefit pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum (or combination thereof) on retirement that is predetermined by a formula based on the employee’s earnings history, tenure of service and age, rather than depending directly on individual investment returns.
Defined contribution (DC) schemes are occupational pension schemes where your own contributions and your employer’s contributions are both invested and the proceeds used to buy a pension and/or other benefits at retirement.

235. Under cash basis of accounting, revenue is recognized when

Sale is made
Cash is received
Goods are delivered
Services are rendered
✅ The correct answer is B.
Under cash basis of accounting, revenue is recognized when Cash is received. Realizable means it is reasonable to expect that cash will be received in the future.

2482. TC curve

Starts from origin
Does not start from origin
Is parallel to Y-axis
None of the above
✅ The correct answer is B.
TC curve does not start from origin. The shape of the total cost curve is based on short-run production returns, especially the law of diminishing marginal returns. Another observation is that the total cost curve does not go through the origin, but rather begins at a positive value on the vertical axis. This vertical intercept indicates fixed cost.

233. When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called

Contingent liability
Provision
Secured loan
None of the above
✅ The correct answer is A.
When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called Contingent liability. Contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event.
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