Administrator, Author at GetMCQs

3215. The purpose of an office is to furnish essential services to the ___________.

public

management

clerks

creditors

✅ The correct answer is B.
The purpose of an office is to furnish essential services to the management. Office provides information to the management on the basis of which it formulates its policies.

3216. How does investment duration affect returns?

There is no relationship whatsoever

With greater duration of investment returns are larger

If the duration is larger the rate of returns is likely to be smaller

With greater duration of investment larger tax possibility is likely

✅ The correct answer is B.
investment duration affect returns with greater duration of investment returns are larger. Generally, the higher the duration of a bond or a bond fund (meaning the longer you need to wait for the payment of coupons and return of principal), the more its price will drop as interest rates rise.

3218. First step in developing an operating budget is to

identify product

identify problem

identify quartiles

identify percentiles

✅ The correct answer is B.
First step in developing an operating budget is to identify problem. An operating budget is a forecast of the revenues and expenses expected for one or more future periods.

3222. Long-term equity anticipation security is usually classified as

short-term options

long-term options

short money options

yearly call

✅ The correct answer is B.
Long-term equity anticipation security is usually classified as long-term options. Long-term equity anticipation securities (LEAPS) are publicly traded options contracts with expiration dates that are longer than one year.

3223. Quality of a commodity that satisfies some human want or need is called

Service

Demand

Utility

Efficiency

✅ The correct answer is C.
Quality of a commodity that satisfies some human want or need is called Utility. Within economics the concept of utility is used to model worth or value, but its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or satisfaction within the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill.

3226. What-if technique, which examines changes in results if original prediction would not be achieved is called

change analysis

original analysis

sensitivity analysis

predicted analysis

✅ The correct answer is C.
Technique that examines changes in results if original prediction would not be achieved is called sensitivity analysis. A sensitivity analysis determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

3228. “What is the company’s breakeven point: Selling price – Rs 6 per unit Variable production cost – Rs 1.20 per unit Variable selling cost – Rs 0.40 per unit Fixed production cost – Rs 4 per unit Fixed selling cost – Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units. “

8,000 units

8,333 units

10,000 units

10,909 units

✅ The correct answer is D.

3224. Which of the following statements is incorrect?

Insurance agent should indicate the scale of commission if asked by the customer

Insurance agent should share the commission by way of rebate

Insurance agent should disclose his licence on demand

Insurance agent should indicate the premium to be charged

✅ The correct answer is B.
All the options are correct, except option 3. Sharing commission with a client is illegal.

3229. All labour is

Homogeneous

Heterogeneous

Lazy

Intelligent

✅ The correct answer is B.
All labour is Heterogeneous.

307. No journal entry is required to be passed when there is

Loss by theft

Normal loss

Loss of bad debts

Abnormal loss of business

✅ The correct answer is B.
No journal entry is required to be passed when there is Normal loss. Normal loss increases the cost of production of the usable goods realized.

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