Tag: commercial studies

Questions Related to commercial studies

Operating and financial leverage are _____________.

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

  1. Independent

  2. Dependent

  3. Interdependent

  4. None of these

Show answer
Correct Option: C

Which of the following is said to be the lifeblood of an organization?

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

  1. Debentures

  2. Finance

  3. Material

  4. Goodwill

Show answer
Correct Option: B
Explanation:

Finance is regarded as the lifeblood of a business enterprise. It is the basic foundation of all kinds of economic activities. Finance is the master key that provides access to all the sources for being employed in manufacturing and merchandising activities. The success of an organization largely depends on efficient management of its finances.

Money required for carrying out business activties is called ___________.

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

  1. financial management

  2. business finance

  3. finance

  4. cost management

Show answer
Correct Option: B
Explanation:

Business finance refers to money and credit employed in business. It involves procurement and utilization of funds so that business firms may be able to carry out their operations effectively and efficiently.

Every business enterprise must undertake such business which is_________________.

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

  1. Unlawful

  2. Lawful

  3. Illegal

  4. All of above

Show answer
Correct Option: B
Explanation:

Every business enterprise must undertake such business which is lawful. All business organization should adhere to the law of the country to ensure peace and order. Illegal and unlawful business organizations should not be undertaken.

BIFR means.

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

  1. Board for Industrial and Financial Reconstruction

  2. Board for International and Financial Reconstruction

  3. Board for Industrial and Forex Reconstruction

  4. Board for International and Forex Revival

Show answer
Correct Option: A
Explanation:

Board for Industrial and Financial Reconstruction $(BIFR)$ is a board setup by the Government of India, in order to tackle the problem of industrial sickness, under the purview of Sick Industrial Companies (Special Provisions) Act,$1985$ $(SICA)$.

Interest paid by other than financial enterprises is shown in cash flow statement under ________________.

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

  1. Operating activities

  2. Investing activities

  3. Financing activities

  4. None of the above

Show answer
Correct Option: C

To guard against the dangers of excess payment arising out of double insurance or over insurance made by the insured, insurance companies provide in their agreement _________________.

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

  1. Average clause

  2. Subrogation clause

  3. Risk clause

  4. Indemnity clause

Show answer
Correct Option: D

The preparation of financial statements pre-supposes the availability of trial balance in ________ system of accounting.

commercial studies computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

  1. computerised

  2. manual

  3. both manual and computerised

  4. None of these

Show answer
Correct Option: B
Explanation:

In a manual system of accounting, the preparation of financial statements pre-supposes the availability of trial balance. However, in computerised accounting, there is no such requirement.

The danger of the system crashing due to hardware failures and the subsequent loss of work is a serious ___________ of computerised accounting system.

commercial studies computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

  1. advantage

  2. limitation

  3. advantage and limitation

  4. None of these

Show answer
Correct Option: B
Explanation:

The danger of the system crashing due to hardware failures and subsequent loss of work is a serious limitation of computerised accounting system. However, providing for back-up arrangements can obviate this limitation.

___________ is a well-defined procedure blended suitably with the operating environment of the organisation.

commercial studies computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

  1. Accounting Framework

  2. Back-end Database

  3. Operating Procedure

  4. Data Processing

Show answer
Correct Option: C
Explanation:

• Operating Procedure : It is a well-defined operating procedure blended. suitably with the operating environment of the organisation. The use of computers in any database oriented application has four basic.