Tag: commercial studies

Questions Related to commercial studies

Who is the Chairman of Bajaj Auto?

commercial studies classification of commercial organisations public, private and joint sector private and public sector sectoral organisation of business departmental undertakings meaning and features of departmental undertaking

  1. Sanjiv Bajaj

  2. Rajiv Bajaj

  3. Jamnalal Bajaj

  4. Rahul Bajaj

Show answer
Correct Option: D
Explanation:

Rahul Bajaj is an Indian billionaire businessman, politician and philanthropist. He is the chairman of Indian conglomerate Bajaj Group and member of parliament. Bajaj comes from the business house started by a Rajasthani Marwadi businessman Jamnalal Bajaj.

Larsen & Toubro Ltd. was founded by _______.

commercial studies classification of commercial organisations public, private and joint sector private and public sector sectoral organisation of business departmental undertakings meaning and features of departmental undertaking

  1. Indians

  2. Americans

  3. Danish

  4. Europeans

Show answer
Correct Option: C
Explanation:

Larsen & Toubro Limited, commonly known as L&T, is one of the largest Indian multi-national firms and leading construction company in India headquartered in Mumbai, Maharashtra, India. It was founded by two Danish engineers taking refuge in India.

ITC was originally named as _______.

commercial studies classification of commercial organisations public, private and joint sector private and public sector sectoral organisation of business departmental undertakings meaning and features of departmental undertaking

  1. Imperial Tobacco company

  2. Indian Tobacco company

  3. Indian Tea company

  4. None of the above

Show answer
Correct Option: A
Explanation:

ITC Limited is an Indian company headquartered in Kolkata, West Bengal. Its five diversified businesses are Fast-Moving Consumer Goods, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology.

Private limited company may appoint ________ number of directors.

commercial studies classification of commercial organisations public, private and joint sector private and public sector sectoral organisation of business departmental undertakings meaning and features of departmental undertaking

  1. 12

  2. 3

  3. 18

  4. 15

Show answer
Correct Option: D
Explanation:

According to section 149(1) of companies act 2013, a private company can appoint minimum 2 directors and maximum 15 directors.

Under single entry system, there is no provision to make adjustments, while under double entry system, adjustments are made at the time of preparing final accounts.

commercial studies single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Preparation of the profit and loss account cannot be prepared through the information assembled through the single entry system. This means that this system cannot help the organization to determine its financial position because there is no provision to make adjustments.

On the other hand, the double entry system of recording financial transactions of the organization is useful in the preparation of trading profit and loss accounts as adjustments are made at the time of preparing final accounts.

_____________ has defined Single Entry System as, 'A system of book keeping in which as a rule only records of cash and personal accounts are maintained, it is always incomplete double entry varying with the circumstances."

commercial studies single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

  1. Kohler

  2. Smith and Ashburne

  3. L.C. Copper

  4. Institute of Charted Accountants of India (ICAI)

Show answer
Correct Option: A

Under double entry system both aspects of transaction are recorded, while Under single entry system, both aspects of transaction are not recorded.

commercial studies single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

In single entry system, incomplete records are maintained while in double entry system complete recording of transactions is there. In single entry system comparison between two accounting periods is very difficult.

Company accounting conforms more to dual aspect concept than to incomplete recording system because.
I. Companies Act insists upon the adoption of double entry systems of book keeping.
II. Balance sheet could not be prepared under sec. $211$ of Company's Act according to the incomplete recording system
III. To show true and fair view of the affairs of the company
IV. To ensure adequate disclosure.
Select the correct answer from the codes given and mark your answer sheet accordingly.

commercial studies single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

  1. I and II

  2. II and III

  3. II, III and IV

  4. I, II and III

Show answer
Correct Option: D
Explanation:

The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting, which is required by all accounting frameworks in order to produce reliable financial statements.

Which of the following are prepared by the organisations keeping only incomplete accounting records?
I. Cash book
II. Customer's Accounts
III. Expenses Accounts
IV. Day Books
Choose the correct answer using the codes given.

commercial studies single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

  1. I, II and III

  2. I, II and IV

  3. I, III and IV

  4. II, III and IV

Show answer
Correct Option: B
Explanation:

A single entry book-keeping system or single-entry accounting system is a method of bookkeeping relying on a one sided accounting entry to maintain financial information.

In single entry system following things are prepared:

1. Cash book - to record all cash transaction

2. Customer's book - to record balances of debtors

3. Day Books - in which all day to day transactions or activities are recorded

4. Statement of profit and loss to arrive at profit or loss.

5. Statement of affairs to arrive at closing capital at the year end.

Single entry system is most popular for ____________.

commercial studies single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs double entry system

  1. Sole trader

  2. Government

  3. Company

  4. All of the above

Show answer
Correct Option: A
Explanation:

Normally Single entry system is maintained by small traders as it do not require special set of book-keeping and expert accounting knowledge. Hence, it becomes hassle free for traders to ascertain their profit of loss earned by the business through single entry system.