63. Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate

A) cash flow of financing activities
B) cash flow per share
C) cash flow of investment
D) cash flow of operations
✅ ANSWER: B
Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate cash flow per share. Cash flow per share can be calculated by dividing cash flow earned in a given reporting period (usually quarterly or annually) by the total number of shares outstanding during the same term. Because the number of shares outstanding can fluctuate, a weighted average is typically used.

64. Mathematical relationships exist between operating and financing activities that affect master budget are called

A) math plan model
B) financial planning models
C) operating plan models
D) master plan models
✅ ANSWER: B
Mathematical relationships exist between operating and financing activities that affect master budget are called financial planning models. A financial planning model uses certain elements to create a future financial plan for a company.

65. Risk of fall in income due to fall in interest rates in future is classified as

A) income risk
B) investment risk
C) reinvestment risk
D) mature risk
✅ ANSWER: C
Risk of fall in income due to fall in interest rates in future is classified as reinvestment risk. Reinvestment risk is the probability that an investor will be unable to reinvest cash flows (e.g., coupon payments) at a rate comparable to the current investment’s rate of return.

66. Which is not an example of social security schemes of the Government?

A) Rajeev Gandhi Equity Scheme
B) Janata Personal Accident
C) Jan Arogya Scheme
D) Employees State Insurance Corporation
✅ ANSWER: A
Rajeev Gandhi Equity Scheme is not an example of social security schemes of the Government. The scheme is aimed at encouraging the flow of savings of small investors in the domestic capital market, and presents investors with tax benefits provisioned as a new section, 80CCG, in the Income Tax act.

67. Long period of bond maturity leads to

A) more price change
B) stable prices
C) standing prices
D) mature prices
✅ ANSWER: A
Long period of bond maturity leads to more price change. With bonds, term to maturity is the time between when the bond is issued and when it matures, known as its maturity date, at which time the issuer must redeem the bond by paying the principal or face value.

68. Which is not the product of general insurance?

A) Motor insurance
B) Personal accident insurance
C) Medical and health insurance
D) Life insurance
✅ ANSWER: D
Life insurance is not the product of general insurance. General Insurance is a contract of indemnity which promises to make good your losses. In Life Insurance, the sum assured along with benefits is paid either on the event of death of the policy holder or on maturity of the policy.

70. The set of applications and technologies that allow users to create, edit, and distribute content online is known as______.

A) Internet
B) social networking
C) virtual life
D) Web 2.0
✅ ANSWER: D
The set of applications and technologies that allow users to create, edit, and distribute content online is known as Web 2.0. Web 2.0 Websites allow users to do more than just retrieve information.