A:-Joint product
B:-Bye-product
C:-Waste
D:-Scrap
Correct Answer:- Option-B
Question59:-Which of the following entry is applicable in relation to abnormal gain in process account ?
A:-Process A/c is debited and Abnormal Gain A/c is credited
Abnormal Gain A/c is debited and Normal loss A/c is credited
C:-Abnormal gain A/c is debited and Costing Profit and loss A/c is credited
D:-None of the above
Correct Answer:-Question Cancelled
Question60:-Which of the following is added to costing profit to arrive at financial profit ?
A:-Income Tax paid
B:-Under absorption of overheads
C:-Rent received
D:-Interest on debentures paid
Correct Answer:- Option-C
Question61:-Which of the following is not a long term financial decision ?
A:-Dividend decision
nancing decision
C:-Liquidity decision
D:-Investment decision
Correct Answer:- Option-C
Question62:-Contingent investments mean
A:-Choice of one investment necessitates undertaking one or more other investment (s)
B:-Investments made during emergency situations in which no emphasis for profit
C:-Investments made for disposing when a contingency occurs in future
D:-None of the above
Correct Answer:- Option-A
Question63:-Which of the following is not applicable to Mutually Exclusive Investments ?
A:-They serve the same purpose
B:-They compete with each other
C:-If one is undertaken, others will have to be excluded
D:-None of the above
Correct Answer:- Option-D
Question64:-Which of the following is not correct in the case of NPV Method ?
A:-Appropriate discount factor is identified using the opportunity cost of capital
B:-Expected net profit in the whole life of the asset is taken into account for discounting
C:-Annual depreciation to be provided for the asset is ignored for evaluating the project
D:-Salvage value of the asset is discounted for the evaluation
Correct Answer:- Option-B
Question65:-Which of the following method does not consider the time value of money ?
A:-NPV Method
B:-ARR Method
C:-Profitability Index Method
D:-None of the above
Correct Answer:- Option-B
Question66:-Which of the following statement is not correct ?
A:-NPV of a project declines as the discount rate increases
B:-NPV will be negative if discount rate is lower than IRR
C:-Project is rejected if IRR is lower than the opportunity cost of capital
D:-None of the above
Correct Answer:- Option-B
Question67:-When Profitability Index (PI) is zero,
A:-Value of discounted future cash inflows and outflows are same
B:-The firm will be running at BEP and hence no return on investment
C:-Expected total revenues are equal to total variable cost (excluding depreciation)
D:-None of the above
Correct Answer:- Option-A