All India CA Foundation Group

Circular test, an index constructed for the year 'x' on the base year 'y' and for the year 'y' on the base year 'z' should yield the same result as an index constructed for 'x' on base year 'z' i.e. I01 x I12 x I20 equal is:
  • a)
    3
  • b)
    2
  • c)
    1
  • d)
    None of these.
Correct answer is option 'C'. Can you explain this answer?

Arka Kaur answered  •  1 hour ago
Explanation:

Concept:
Circular test in index numbers refers to the property that if an index is constructed for a certain year on a certain base year, and then again for another year on the base year of the first index, the result should be the same as constructing the index directly for the two years on the common base year.

Example:
Let's cons
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?

Sagarika Pillai answered  •  6 hours ago
Effective Rate of Interest Calculation
Effective rate of interest is the actual interest rate earned or paid on an investment or loan, taking into account the effects of compounding over a given period. To calculate the effective rate of interest corresponding to a nominal rate of 3% p.a payable half-yearly, follow these steps:

Step 1: Convert the nominal rate to a period
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Since the nominal rate is 3% p.a payable half-yearly, divide the annual rate by the number of compounding periods per year. In this case, since interest is paid half-yearly, the periodic rate would be 3% / 2 = 1.5% per half-year.

Step 2: Calculate the effective rate of interest
To calculate the effective rate of interest, use the formula:
Effective Rate = (1 + (Nominal Rate / Number of Compounding Periods)) ^ Number of Compounding Periods - 1
= (1 + (0.03 / 2)) ^ 2 - 1
= (1 + 0.015) ^ 2 - 1
= (1.015) ^ 2 - 1
= 1.030225 - 1
= 0.030225 or 3.0225%

Step 3: Interpretation
Therefore, the effective rate of interest corresponding to a nominal rate of 3% p.a payable half-yearly is approximately 3.0225%. This means that if you invest or borrow money at the nominal rate of 3% p.a with half-yearly compounding, you would effectively be earning or paying 3.0225% interest per year.

When a person faces north and walk 25 m and he turn left and walk 20m and ag turns right and walk 25m, and turns right 25m and turns right and walks 40m which direction is he now from his starting point.?

Tejas Chaudhary answered  •  10 hours ago
- **Current Position**
The person started by facing north and walked 25m. Then, he made a series of turns and walks as follows:
1. Turned left and walked 20m
2. Turned right and walked 25m
3. Turned right and walked 25m
4. Turned right and walked 40m
- **Calculating Directions**
To determine the current position of the person from his starting point, we need to c
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For admitting a minor into the benefits of the partnership ,which of the following is required? (a) consent of the minor's guardian (b) consent of the registrar of firms (c) consent of all the partners of the firm (d) all of ... more

Anu Kaur answered  •  15 hours ago
Consent for Admitting a Minor into Partnership
Explanation:
Consent of the Minor's Guardian:
- In order to admit a minor into the benefits of a partnership, the consent of the minor's guardian is essential. Since minors are not considered competent to enter into contracts, the guardian's consent is required to protect the minor's interests a
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An unregistered firm can not claim Set on (a) (b) Set off (c) Set on and set off (d) None of the above?

Anu Kaur answered  •  16 hours ago
Unregistered Firm and Claims
An unregistered firm cannot claim set on or set off under the Goods and Services Tax (GST) law. Let's break down the reasons why:

Set On
- Set on refers to the ability of a registered person to collect tax from the recipient and pass on the credit of the taxes paid on the inputs to the recipient.
- Since an unregistered firm is n
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The doctrine of Caveat Emptor does not apply, when
  • a)
    the goods are bought by sample
  • b)
    the goods are bought by sample as well as description
  • c)
    the goods are purchased under its brand name
  • d)
    all of the above
Correct answer is option 'D'. Can you explain this answer?

Anu Kaur answered  •  16 hours ago
Explanation:

Doctrine of Caveat Emptor:
The doctrine of Caveat Emptor means "let the buyer beware." Under this doctrine, the buyer is responsible for checking the quality and suitability of goods before making a purchase. The seller does not have to disclose any defects unless asked specifically.

Exceptions to Caveat Emptor:
There are exceptions
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An unregistered firm cannot claim
  • a)
    Set on
  • b)
    Set off
  • c)
    Set on and set off
  • d)
    None of the above
Correct answer is option 'B'. Can you explain this answer?

Anu Kaur answered  •  16 hours ago
Explanation:
Unregistered firms do not have the legal recognition to claim set off. Let's break down each option to understand why a firm cannot claim set off if it is unregistered:

Set on:
- Set on refers to the right of a creditor to appropriate any payment made by the debtor towards a particular debt.
- An unregistered firm can exercise this right as it
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 Doctrine of Caveat Emptor requires the buyer :
  • a)
    To be careful while making a purchase.
  • b)
    To depend on representation made by seller.
  • c)
    To warn a seller not to sell any fake goods.
  • d)
    Not to make any advance payment.
Correct answer is option 'A'. Can you explain this answer?

Anu Kaur answered  •  16 hours ago
Explanation:

Doctrine of Caveat Emptor:
Caveat Emptor is a Latin term that means "let the buyer beware." It is a legal principle that places the responsibility on the buyer to be cautious and diligent when making a purchase.

Buyer's Responsibility:
- The Doctrine of Caveat Emptor requires the buyer to be careful while making a purchase.
- T
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Tally marks are used find
  • a)
    class interval
  • b)
    range
  • c)
    frequency
  • d)
    upper limit
Correct answer is option 'C'. Can you explain this answer?

Amrutha Goyal answered  •  22 hours ago
Frequency Calculation using Tally Marks
Tally marks are a quick and efficient way to count frequencies of data. Each tally mark represents a count of one. When counting data, tally marks are commonly used to keep track of the number of times a particular value occurs.

Process of using Tally Marks to find Frequency:
- In a dataset, each time a specific value appea
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What is the remainder when x4+3x2-20 is divided by (x-2)?
  • a)
    25
  • b)
    -40
  • c)
    20
  • d)
    -45
Correct answer is option 'C'. Can you explain this answer?

Amrutha Goyal answered  •  22 hours ago
Dividing x^4 + 3x^2 - 20 by (x-2):
To find the remainder when x^4 + 3x^2 - 20 is divided by (x-2), we will use polynomial long division.

Step 1: Divide x^4 by x
- x^4 / x = x^3

Step 2: Multiply x-2 by x^3
- (x-2) * x^3 = x^4 - 2x^3

Step 3: Subtract the result from x^4 + 3x^2 - 20
- (x^4 + 3x^2 - 20) - (x^4 - 2x^3) = 3
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The minimum price below which the auctioneer will not sell the goods. 
  • a)
    Stock price 
  • b)
    Reserve price 
  • c)
    Upset Price 
  • d)
    Either  (b) or (c) 
Correct answer is option 'D'. Can you explain this answer?

Niharika Joshi answered  •  23 hours ago
Reserve Price vs Upset Price:
The correct answer to the question is option D, which states that the minimum price below which the auctioneer will not sell the goods is either the reserve price or the upset price. Let's understand the difference between these two terms:

Reserve Price:
- The reserve price is the minimum price set by the seller before the auction st
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Unpaid seller can sell the goods if:
  • a)
    They are of perishable nature
  • b)
    They are of durable nature 
  • c)
    When he gives notice to buyer 
  • d)
    Both (a) and 
Correct answer is option 'D'. Can you explain this answer?

Ameya Menon answered  •  23 hours ago
Explanation:

Perishable Nature of Goods:
- An unpaid seller can sell the goods if they are of perishable nature because these goods are likely to lose their value quickly if not sold promptly.
- Examples of perishable goods include fresh produce, dairy products, and flowers.

Durable Nature of Goods:
- On the other hand, if the goods are of
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The nth term of the series 16,8,4,.in 1/2^17 . The value of n is?

Ipsita Rane answered  •  yesterday
Finding the Value of n in a Series
The given series is 16, 8, 4, ...

Identifying the Pattern
The series appears to be decreasing by half each time. This is because each term is half of the previous term.

Finding the nth Term
To find the nth term of the series, we can use the formula for the nth term of a geometric sequence:
\[ a_n = a_
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Which of the following is not a function of financial accounting? A keeping systematic recording B meeting legal requirements C forecasting D communicating business r?

Ipsita Rane answered  •  yesterday
Forecasting
Financial accounting primarily focuses on recording, summarizing, and reporting financial transactions of a business. Forecasting, on the other hand, involves predicting future trends and outcomes based on historical data and various assumptions. It is not a direct function of financial accounting but rather a separate analytical process that utilizes financial information.
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A draws a bill on B for Rs 1,00,000. A endorsed the bill to C. The bill return dishonoured.Noting charges Rs 1000. B request A to accept the amount at 2% discount by a single cheque. The cheque amount will be:
  • a)
    98,000
  • b)
    98,980
  • c)
    99,000
  • d)
    99,980
Correct answer is option 'B'. Can you explain this answer?

Ipsita Rane answered  •  yesterday
Calculation of Cheque Amount:
- The bill amount drawn by A on B is Rs 1,00,000.
- A endorses the bill to C.
- The bill is dishonoured, and noting charges of Rs 1000 are incurred.
- B requests A to accept the amount at a 2% discount by a single cheque.

Calculation:
- Amount of the bill = Rs 1,00,000
- Noting charges = Rs 1000
Total amount
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Stagflation means —————.
  • a)
    Inflation with recession
  • b)
    Recession with stagnation
  • c)
    Inflation galloping like a stag
  • d)
    Inflation and increasing output.
Correct answer is option 'A'. Can you explain this answer?

Ipsita Rane answered  •  yesterday
Explanation of the Answer:

Stagflation:
Stagflation is a term used to describe a situation in which an economy experiences both inflation and stagnation. This means that there is a high level of inflation (rising prices) along with a stagnant or slow-growing economy.

Definition:
Stagflation is a combination of stagnant economic growth, high unem
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‘X’ agreed to purchase a ring from ‘S’. X believed that ring was a diamond. S knows that X was under a mistake and did not disclose the fact. Then x can
  • a)
    Cannot cancel the contract
  • b)
    Can cancel the contract
  • c)
    Can cancel the contract under fraud
  • d)
    Can claim for damage
Correct answer is option 'A'. Can you explain this answer?

Ipsita Rane answered  •  yesterday
Mistake as to the nature of the contract:
In this scenario, X made a mistake regarding the nature of the ring being purchased - believing it to be a diamond when it was not. S, the seller, was aware of this mistake but did not disclose this information to X.

Legal implications:
According to contract law, a mistake as to the nature of the contract can render the c
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The modern economy is not characterised by
  • a)
    Capital intensive mode of production
  • b)
    development of money economy
  • c)
    production for market
  • d)
    self-sufficient village system
Correct answer is option 'D'. Can you explain this answer?

Gaurav Chatterjee answered  •  yesterday
Modern Economy Characteristics:

Capital Intensive Mode of Production:
In the modern economy, production is characterized by the use of advanced technology and machinery, leading to a capital-intensive mode of production. This means that businesses rely heavily on machinery, equipment, and technology to produce goods and services efficiently.

Development
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Another characteristic of the modern economy is the development of a money economy. Money serves as a medium of exchange, unit of account, and store of value in the modern economy. It facilitates transactions and enables economic activities to take place smoothly.

Production for Market:
In the modern economy, production is primarily driven by market forces. Businesses produce goods and services for sale in the market, where prices are determined by supply and demand. This is in contrast to a self-sufficient village system where production is mainly for subsistence and barter.

Self-Sufficient Village System:
Unlike the modern economy, a self-sufficient village system is characterized by production for subsistence. Villagers produce goods and services mainly for their own consumption and rely on barter for exchange. This system is more localized and less reliant on money and market forces.
In conclusion, the modern economy is not characterized by a self-sufficient village system where production is mainly for subsistence and barter. Instead, it is characterized by capital-intensive production, the development of a money economy, and production for the market.

Can i get grace marks for foundation exam?

Lekshmi Mehta answered  •  yesterday
Can I Get Grace Marks for Foundation Exam?
Grace marks in exams are additional marks given to students to help them pass or improve their grades. However, grace marks are usually given in exceptional circumstances, such as when there are errors in the question paper or if there is a discrepancy in the evaluation process.

Factors Considered for Grace Marks:
- Erro
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An amount of Rs. 6,000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to his personal account. The rectification entry is : 
  • a)
    Anshul A/c Dr. Rs. 6,000
    To Suspense A/c   Rs. 6,000
  • b)
    Suspense A/c Dr. Rs. 6,000
    To Bad Debts
    Recovered A/c    Rs. 6,000
  • c)
    No entry will be made
  • d)
    Anshul A/c Dr. Rs. 6,000
    To Bad Debts
    Recovered A/c Rs. 6,000
Correct answer is option 'D'. Can you explain this answer?

Nipun Tuteja answered  •  2 days ago
Correct option is D.
When an amount previously written off as a bad debt is unexpectedly recovered, the rectification entry in the accounting records is as follows:
  1. Bad Debts Recovered A/c Dr. Rs. 6,000: This account is debited to record the recovery of the bad debt. It increases the amount of income or reduction in expense related to bad debts.
  2. Anshul A/c Cr. Rs. 6,000: Anshul's personal account is credited to reinstate the amount that had been previously written off as a bad debt. This reduces the accounts receivable balance from Anshul.
Therefore, the rectification entry would be:
Bad Debts Recovered A/c Dr. 6,000
To Anshul A/c 6,000

Seeta and Geeta are partners sharing profits and losses in the ratio 4:1. Meeta was manager who received the salary of Rs. 4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs. 6,78,000 before charging salary. Find the total remuneration of Meeta.
  • a)
    Rs. 78,000.
  • b)
    Rs. 88,000.
  • c)
    Rs. 87,000.
  • d)
    Rs. 76,000.
Correct answer is option 'A'. Can you explain this answer?

Arka Tiwari answered  •  2 days ago
Calculation of Meeta's Total Remuneration:

Given data:
- Profits before charging Meeta's salary = Rs. 6,78,000
- Seeta and Geeta profit-sharing ratio = 4:1
- Meeta's salary = Rs. 4,000 per month
- Meeta's commission = 5% on net profits after charging her salary

Step 1: Calculate Seeta and Geeta's share of profits
- Seeta's share =
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The method of presentation least used by Statistician is
  • a)
    Textual
  • b)
    Tabulation
  • c)
    Diagrammatic
  • d)
    None of these
Correct answer is option 'A'. Can you explain this answer?

Mihir Banerjee answered  •  3 days ago
Textual Presentation:
Textual presentation involves describing statistical findings in words rather than using numbers or visual aids. Statisticians generally prefer not to rely solely on textual presentation as it can be subjective and open to interpretation.

Tabulation:
Tabulation is a commonly used method by statisticians to organize data in rows and columns,
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Is interest on drawing loss of profit for business?

Sounak Jain answered  •  3 days ago
Is Interest on Drawing Loss of Profit for Business?
Interest on drawing is a concept related to partnerships where partners withdraw funds from the business for personal use. The interest charged on these withdrawals can be seen as a loss of profit for the business. Let's delve into the details:

Understanding Interest on Drawing
- When a partner takes out more mo
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What kind of interest on drawings account is among the following :representative personal account, artificial personal account real account , nominal account.?

Puja Singh answered  •  3 days ago
Interest on Drawings Account
Interest on Drawings Account is a nominal account among the following options.

Nominal Account
- A nominal account is an account that represents income, expenses, losses, or gains.
- It is temporary in nature and is closed at the end of the accounting period to the Income Statement.
- Interest on Drawings Account falls unde
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Fisher’s Ideal Formula dose not satisfy _________ test
  • a)
    Unit test
  • b)
    Circular Test
  • c)
    Time Reversal Test
  • d)
    none
Correct answer is option 'B'. Can you explain this answer?

Sinjini Gupta answered  •  3 days ago
Explanation:

Fisher's Ideal Formula:
- Fisher's Ideal Formula is used to measure the value of money over time by taking into account changes in price levels.

Circular Test:
- The Circular Test is a test of consistency used to check if the formula is internally consistent.
- Fisher's Ideal Formula does not satisfy the Circular Test because i
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Give me equation type of questions for point elasticity?

Malavika Basak answered  •  3 days ago



Equation type questions for point elasticity:


  1. Question 1: Calculate the point elasticity of demand when the price of a good is $10, the quantity demanded is 100 units, and the price elasticity of demand is -2.


  2. Question 2: A company produces a product at a cost of $50 per unit. If the price elastic... more



Explanation:
Point elasticity is a measure of the responsiveness of quantity demanded or supplied to a change in price at a specific point. It is calculated using the formula:

Point Elasticity = (% Change in Quantity / % Change in Price)
This formula helps us understand how sensitive consumers or producers are to changes in price at a specific point.

Answering Equation Type Questions:
When solving equation type questions for point elasticity, it is crucial to first identify the given values such as price, quantity, and elasticity. Then, plug these values into the point elasticity formula to calculate the point elasticity at the specific point in question.

Conclusion:
By practicing equation type questions for point elasticity, you can enhance your understanding of how price changes affect quantity demanded or supplied at a specific point. This skill is valuable for analyzing market behavior and making informed business decisions.

Jyoti Nair asked a question

Each of the 10 persons namely A, Q, R, Z, M, N, P, B, K and L are wearing a shirt. The colour of each shirt is one out of blue, green and red. There are ten chairs placed in a row. The chairs are consecutively numbered 1, 2, 3, 4...9 and 10 from left to right in that order. These ten persons have to sit on the chairs such that there is only one person in each chair. The number of persons wearing a green and a blue shirt is 2 and 3 respectively.
Additional Information:
1. No two persons wearing blue shirts sit on consecutively numbered chairs.
2. Among the persons wearing red shirts, exactly three persons always are sitting together while the remaining two never.
3. A person wearing a blue shirt and a person wearing a green shirt never is sitting on consecutively numbered chairs.
4. A person wearing a green shirt cannot sit on chairs numbered 2 or 9.
5. Persons wearing red shirts are not sitting at extreme ends.
The following table provides information about the six different seating arrangements namely I, II, III, IV, V and VI of the ten persons done by Mr. Crazy. He observed that out of all the seating arrangements done by him, there is one arrangement that is not consistent with the information stated under "Additional Information".
Q. Which of the arrangements done by Mr. Crazy is not consistent with the information stated under "Additional Information"?
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What do you mean by money multiplier?

Pranav Gupta answered  •  4 days ago
Money Multiplier
The money multiplier is a concept used to show the impact of a change in the monetary base on the money supply in an economy. It represents the ratio of the increase in the money supply to the increase in the monetary base.

How it works
- The money multiplier is based on the fractional reserve banking system, where banks are required to hold only
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Under Capitalization basis goodwill is calculated by : 
  • a)
    Average profits x years of purchase 
  • b)
    Super profits x years of purchase 
  • c)
    Total of the discounted value of expected future benefits 
  • d)
    Super profit divided with expected rate of return 
Correct answer is option 'D'. Can you explain this answer?

Gopal Sen answered  •  4 days ago
Under Capitalization basis goodwill calculation:
Goodwill is calculated under the Capitalization basis by using the concept of super profits. Super profits are the excess profits earned by a business over and above the normal rate of return. The formula for calculating goodwill under the Capitalization basis is:

Goodwill = Super profit / Expected rate of return
<
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Cost of sugar in a month under the heads of raw materials, labour, direct production and other were 12, 20, 35,23 units respectively what is the difference between the central angle for the largest and smallest components of ... more

Stuti Desai answered  •  4 days ago
Calculation of Central Angles:
- Raw materials: 12 units
- Labour: 20 units
- Direct production: 35 units
- Other: 23 units

Central Angle Calculation:
To calculate the central angle for each component, we will use the formula:
Central Angle = (Cost of Component / Total Cost) * 360 degrees
- Central Angle for Raw materials = (12 / 90) * 36
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The value of sametion of r=1 to 10 r. rPr is?

Maheshwar Sharma answered  •  4 days ago
Calculation of rPr for r = 1 to 10
To calculate the value of Σr=1 to 10 r. rPr, we need to first understand the concept of rPr.

Understanding rPr
- rPr represents the product of r consecutive integers starting from r. For example, 5P3 = 5 * 4 * 3 = 60.
- Therefore, rPr is essentially the factorial of r multiplied by (r-1)!, where ! represents the factorial
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If goods are sent on sale or return basis, it will be treated as _____
  • a)
    An ordinary sale and not recorded in the books
  • b)
    An ordinary sale and recorded in the books as normal sale
  • c)
    The goods are approved and no entry is passed in the books
  • d)
    None of these
Correct answer is option 'B'. Can you explain this answer?

Rajveer Jain answered  •  4 days ago
Explanation:

Sale or Return Basis:
Goods sent on sale or return basis refer to a situation where a seller sends goods to a buyer with an agreement that the buyer can either accept the goods and pay for them or return them without any obligation to purchase.

Treatment in Books:
When goods are sent on a sale or return basis, it is considered as an
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If 1 per cent of an airline's flights suffer a minor equipment failure in n aircraft, what is the probability that there will be exactly two such failures in the next 100 such flights?

Sparsh Chauhan answered  •  5 days ago
Probability of Minor Equipment Failure
- The probability of a minor equipment failure in a single flight is 1% or 0.01.
- Let's denote this probability as p = 0.01.

Probability of Two Failures in 100 Flights
- In the next 100 flights, we want to find the probability of exactly two minor equipment failures.
- This situation can be modeled using the binom
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Any amount spent to minimize the working expenses is revenue expenditure. True or False?

M.thirisha answered  •  5 days ago
Expenses incurred on the repairs for the first time on purchases of an old building are capital expenditure true or false

Under inflationary conditions, which of the methods will not show greatest value of COGS?
  • a)
    FIFO
  • b)
    LIFO
  • c)
    HIFO
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?

Rajeev Chaudhary answered  •  5 days ago
Explanation:

FIFO (First-In-First-Out):
- Under inflationary conditions, FIFO will show the greatest value of COGS.
- This is because FIFO assumes that the oldest inventory is sold first, resulting in lower COGS as older, cheaper inventory is used up first.

LIFO (Last-In-First-Out):
- LIFO would not show the greatest value of COGS under inf
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The median and modal profits for the following data
Profit in ‘000 `: below 5 below 10 below 15 below 20 below 25 below 30
No. of firms: 10 25 45 55 62 65?

Siddharth Sen answered  •  5 days ago
Median and Modal Profits Analysis
Understanding the Data:
- The data provided shows the number of firms with profits below certain amounts.
- The profits are categorized into ranges of below 5, below 10, below 15, below 20, below 25, and below 30.

Finding the Median Profit
Calculating the Median:
- The median profit is the middle value when the pro
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Central tendency Set C Q.no. 3?

Simran Pillai answered  •  5 days ago
Central tendency Set C Q.no. 3
Central tendency is a statistical measure that identifies a single value as representative of an entire distribution of data. In Set C Q.no. 3, we are asked to determine the central tendency of a given data set. There are three common measures of central tendency: mean, median, and mode.

Mean
The mean is calculated by adding up all
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