Tag: commercial studies

Quizzes (186) Questions (1136)

Questions Related to commercial studies

Multiple choice 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

An accounting system where debit and credit rule is not followed.

  1. Double entry system

  2. Single entry system

  3. Financial accounting

  4. Book keeping accountancy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A system were Profit or loss earned by the business  is based on the difference between its Opening and closing capital. is called Single entry system
In order to find the  capitals , Statement of affairs are prepared which are based on an equation Capital = Assets - Liabilities
Hence, basic accounting aspects of debit and credit are not followed.

Multiple choice commercial studies sources of business finance - 2 public deposits non-institutional sources - medium-term financing lease financing

Public deposits takes care of both _________ and _________-term financial requirements of a business.

  1. Large, medium

  2. Medium, short

  3. Large, short

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Public deposits can take care of both medium and short-term financial requirements of a business. 
The deposits are beneficial to both the depositor as well as to the organisation. While the depositors get higher interest rate than that offered by banks.
Multiple choice commercial studies sources of business finance - 2 public deposits non-institutional sources - medium-term financing lease financing

Companies generally invite public deposits for a period upto ________ years.

  1. One

  2. Two

  3. Three

  4. Four
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
The deposits that are raised by organisations directly from the public are known as public deposits. The organization in return issues a deposit receipt as acknowledgement of the debt. Public deposits can take care of both short-term or medium-term financial requirements. Companies generally invite public deposits for medium-term period upto three years.
Multiple choice commercial studies sources of business finance - 2 public deposits non-institutional sources - medium-term financing lease financing

Cost of public deposits is generally _______ than the cost of borrowings from banks and financial institutions.

  1. Higher

  2. Lower

  3. Equal

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
The deposits that are raised by organisations directly from the public are known as public deposits. Cost of public deposits is generally lower than the cost of borrowings from banks and financial institutions.
Multiple choice commercial studies sources of business finance - 2 public deposits non-institutional sources - medium-term financing lease financing

The deposits that are raised by organisations directly from the public are known as __________.

  1. Lease finance

  2. Public deposits

  3. Commercial paper

  4. Trade credit
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The deposits that are raised by organisations directly from the public are known as public deposits. Cost of public deposits is generally lower than the cost of borrowings from banks and financial institutions. Public deposits are beneficial to both depositor as well as the organization. 

Multiple choice commercial studies sources of business finance - 2 public deposits non-institutional sources - medium-term financing lease financing

Rates of interest offered on public deposits are usually _________ than that offered on bank deposits.

  1. Higher

  2. Lower

  3. Equal

  4. Both a and b
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The deposits that are raised by organisations directly from the public are known as public deposits. Rates of interest offered on public deposits are usually higher than that offered on bank deposits. 

Any person who is interested in depositing money in an organisation can do so by filling up a prescribed form. The organisation in return issues a deposit receipt as acknowledgment of the debt.
Multiple choice commercial studies sources of business finance - 2 public deposits non-institutional sources - medium-term financing lease financing

Collection of public deposits may prove difficult, particularly when the size of deposits required is _________.

  1. Large

  2. Small

  3. Medium

  4. Both a and b
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The deposits that are raised directly from the public are public deposits. Any person who is interested in depositing money in an organisation can do so by filling up a prescribed form. the cost of deposits to the company is less than the cost of borrowings from banks. But Collection of public deposits may prove difficult, particularly when the size of deposits required is large.

Multiple choice commercial studies sources of business finance - 2 public deposits non-institutional sources - medium-term financing lease financing

Public investment in a company is generally in the form of_______________.

  1. Shares, debentures and deposits

  2. Purchase of goods

  3. Money Transfer

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Public investment in a company is generally in the form of shares, debentures and deposits. It means public can invest in a company by purchasing shares, debentures and deposits.

Multiple choice commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

As per section 2(51) of the Companies Act, 2013, "Key Managerial Personnel", in relation to a company, means _______.
(i) Chief Executive officer or managing director or manager
(ii) Company Secretary
(iii) General Manager
(iv) Whole Time Director
(v) Chief Legal Officer 
(vi) Chief Financial Officer
The correct answer is -

  1. (i), (ii), (iv) & (vi)

  2. (i), (iii), (iv), (v) & (vi)

  3. (i), (ii), (v) & (vi)

  4. (i), (iv), (v) & (vi)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to Section 2(51) of the Companies Act, 2013, Key Managerial Personnel includes the CEO/MD/Manager, Company Secretary, Whole-time Director, and CFO.

Multiple choice commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

Which of the following is the external user of financial statements?

  1. Manager of the business

  2. CEO of the business

  3. Creditor of the business

  4. Controller of the business
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

External users are those outside the organization who use financial statements to make decisions. Creditors use these statements to assess the creditworthiness of the business, unlike managers, CEOs, or controllers who are internal.