Art Archives

131. Which of the following event is subject matter of Accounting?

A) Death of key executive of the business

B) Strike of workers

C) Payment of Rs.1000 to bank in discharge of outstanding loan

D) Marriage of the daughter of the MD of the company

✅ ANSWER: C
Payment of Rs.1000 to bank in discharge of outstanding loan is subject matter of Accounting.

132. Annuity belongs to

A) One where the annuity amount is fixed (guaranteed)

B) One where the annuity amount is variable (linked to investment performance)

C) Both A & B

D) None of the above

✅ ANSWER: C
Annuity belongs to one where the annuity amount is fixed (guaranteed) and one where the annuity amount is variable (linked to investment performance).

133. Financial security which is tax exempted and issues by state governments to individuals is classified as

A) U.S treasury bonds

B) mortgages

C) municipal bonds

D) corporate bonds

✅ ANSWER: C
Financial security which is tax exempted and issues by state governments to individuals is classified as municipal bonds. Municipal bonds are loans investors make to local governments. They are issued by cities, states, counties, or other local governments. For that reason, the interest they pay on the bonds is tax-free.

134. In a joint life annuity, what would happen to annuity payment if the spouse is to predecease the annuitant?

A) Annuity would continue

B) Annuity would cease

C) A & B correct

D) None of the above

✅ ANSWER: B
In a joint life annuity, Annuity would cease if the spouse is to predeceased the annuitant.

135. Which of the following is correct? Statement A – Insurance reduces burdens Statement B – Insurance is a system of mutual support. Statement C – Insurance the only method to manage risks.

A) A is correct

B) B is correct

C) A, B & C correct

D) A & B correct

✅ ANSWER: D
Insurance reduces burdens and Insurance is a system of mutual support. Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.

136. Which of the following is a service department?

A) Refining department

B) Machining department

C) Receiving department

D) Finishing department

✅ ANSWER: C
Receiving department is a service department. A service department is a cost center that provides services to the rest of a company. The manager of a service department is responsible for keeping costs down, or meeting the costs stated in a budget.

137. Which of the below group would not be eligible for a group health insurance policy?

A) Employees of a company

B) Credit card holders of an organisation

C) Professional association members

D) Group of unrelated individuals formed for the purpose of availing group health insurance

✅ ANSWER: D
Group of unrelated individuals formed for the purpose of availing group health insurance would not be eligible for a group health insurance policy.

138. Under GST, Insurance is taxed _______ percent.

A) 0%

B) 5%

C) 12%

D) 18%

✅ ANSWER: D

139. “The following information is available for the W hotel for the latest thirty day period. Number of rooms available per night 40 Percentage occupancy achieved 65% Room servicing cost incurred Rs 3900 The room servicing cost per occupied room-night last period, to the nearest Rs, was:”

A) Rs 3.25

B) Rs 5.00

C) Rs 97.50

D) Rs 150.00

✅ ANSWER: B
Service occupied = 30 × 40 × 65/100 =780

The room servicing cost per occupied room-night last period, to the nearest Rs, was:
= 3900/780 = Rs. 5.00

140. All of the following are determinants of demand except

A) Tastes and preferences

B) Quantity supplied

C) Income

D) Price of related goods

✅ ANSWER: B
All of the following are determinants of demand except Quantity supplied. The Five Determinants of Demand Prices of related goods or services. These are either complementary, those purchased along with a particular good or service, or substitutes, those purchased instead of a certain good or service. Tastes or preferences of consumers. Expectations.