Art Archives

141. Systematic way of linking group of indirect cost to a cost object is classified as

A) linked allocation base

B) direct allocation base

C) indirect allocation base

D) cost allocation base

✅ ANSWER: D
Systematic way of linking group of indirect cost to a cost object is classified as cost allocation base. An allocation base is the basis upon which an entity allocates its overhead costs.

142. The person who transfer rights is called _ and the person who receives the right is called _

A) Nominee, Assignee

B) Appointee, Assignee

C) Assignor, Assignee

D) Lender, Loanee

✅ ANSWER: C
The person who transfer rights is called Assignor and the person who receives the right is called Assignee.

143. Sales budget variance is subtracted from flexible budget amount to calculate

A) static budget amount

B) unstated amount

C) constant amount

D) variable amount

✅ ANSWER: A
Sales budget variance is subtracted from flexible budget amount to calculate static budget amount. A static budget is a type of budget that incorporates anticipated values about inputs and outputs that are conceived before the period in question begins.

144. What is the name of the new anti‐Spam bill?

A) No‐Spam

B) CAN‐Spam

C) Spam‐Away

D) Stop Spam

✅ ANSWER: B
CAN‐Spam is the name of the new anti‐Spam bill. Controlling the Assault of Non-Solicited Pornography And Marketing (CAN-SPAM) is a law that establishes the rules for commercial email and commercial messages, gives recipients the right to have a business stop emailing them, and outlines the penalties incurred for those who violate the law.

145. The supply of a commodity refers to

A) Actual production of the commodity

B) Total existing stock of the commodity

C) Stock available for sale

D) Amount of the commodity offered for sale at a particular price per unit of time

✅ ANSWER: D
The supply of a commodity refers to amount of the commodity offered for sale at a particular price per unit of time. Price of a commodity is determined by the demand for and supply of a commodity.

146. An example of fixed cost ________.

A) property tax

B) rent for building

C) direct material cost

D) direct wages

✅ ANSWER: B
An example of fixed cost rent for building. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

147. What is the due date for payment of tax?

A) Last day of the month to which payment relates

B) Within 10 days of the subsequent month

C) Within 20 days of the subsequent month

D) Within 15 days of the subsequent month

✅ ANSWER: C

148. In the initial years of a ULIP, the value of the benefits would be

A) High

B) Low

C) Moderate

D) None of the three

✅ ANSWER: B
In the initial years of a ULIP, the value of the benefits would be low.

149. An income available for shareholders after deducting expenses and taxes from revenues is classified as

A) net income

B) net earnings

C) net expenses

D) net revenues

✅ ANSWER: A
An income available for shareholders after deducting expenses and taxes from revenues is classified as net income. Net income represents the amount of money remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company’s total revenue.

150. Market in which bonds are traded over-the-counter than in an organized exchange is classified as

A) organized markets

B) trade markets

C) counter markets

D) bond markets

✅ ANSWER: D
Market in which bonds are traded over-the-counter than in an organized exchange is classified as bond markets. The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market.