Tag: commercial applications

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Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Match List-I with List-II and select the correct answer using the codes given the lists.

List-I(Accounting concept) List-II(Principle involved)
I. Consistency (a) Losses are anticipated and accounted for in advance but profits are not accounted for until realised
II. Comparability (b) All the relevant financial information should be summarised and presented in the accounting statements
III. Conservatism (c) According procedures in an entity should be followed uniformly from period to period
IV. Disclosure (d) Accounting statement of different periods of an entity and those of different entities of a period should be based on the same accounting principles and procedures
(e) Personal Judgement of accountants should not influence accounting measurements

  1. I-(d), II-(c), III-(e), IV-(b)

  2. I-(c), II-(d), III-(a), IV-(b)

  3. I-(d), II-(c), III-(a), IV-(e)

  4. I-(c), II-(d), III-(b), IV-(e)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
  1. Consistency: The consistency principle states  that, once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods. Only change an accounting principle or method if the new version in some way improves reported financial results. 
    2. Comparability: It is one of the key qualities which accounting information must possess. Accounting information is comparable when accounting standards and polices are applied consistently from one period to another and from one region to another.
    3. Conservatism: Under the conservatism principle, if there is uncertainty about incurring a loss, you should tend towards recording the loss. Conversely, if there is uncertainty about recording a gain you should not record the gain.
    4. Disclosure: Full disclosure principle requires a company to provide the necessary information so that people who are accustomed to reading financial information can make informed decisions concerning the company. All relevant financial information should be summarised and presented in the accounting statements. 
Multiple choice commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

Consider the following

    1. Pricing objective
    2. Pricing methods
    3. Pricing strategies
    4. Pricing decision
    Arrange them in correct sequence

    1. (1), (3), (2), (4)

    2. (1), (4), (3), (2)

    3. (2), (1), (4), (3)

    4. (4), (2), (3), (1)
    Reveal answer Fill a bubble to check yourself
    A Correct answer
    Explanation

    The logical sequence for pricing starts with defining the objectives, followed by selecting the strategy, determining the specific method, and finally making the pricing decision.

    Multiple choice commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

    Consider the following

      1. Changes in quality
      2. Changes in compositions
      3. Tastes and preferences
      4. Price differences
      Which of the above impose limitations in the use of price indices to measure the terms o

      1. 1 and 2

      2. 2 and 3

      3. 1, 2 and 3

      4. 1, 2 and 4
      Reveal answer Fill a bubble to check yourself
      D Correct answer
      Explanation

      Price indices are limited by changes in product quality, composition, and price differences across regions or time. Tastes and preferences are subjective and generally do not directly invalidate the calculation of a price index.

      Multiple choice commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

      Tender Price means _______________.

      1. Quotation Price

      2. Probable Sale Price

      3. Price informed to the customer

      4. All of the above
      Reveal answer Fill a bubble to check yourself
      D Correct answer
      Explanation

      A tender price refers to the price quoted by a supplier in response to a request for tender. It encompasses the quotation price, the anticipated sale price, and the price communicated to the customer for the contract.

      Multiple choice commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

      Securities with less predictable prices and have longer maturity time is considered as ______________.

      1. cash equivalents

      2. long-term investments

      3. inventories

      4. short-term investments
      Reveal answer Fill a bubble to check yourself
      B Correct answer
      Explanation

      Securities with longer maturity periods and greater price volatility due to market fluctuations are classified as long-term investments. Cash equivalents and short-term investments have high liquidity and short maturities.

      Multiple choice commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

      If actual selling price is 500,actual result is 500,actual result is 250 and actual units sold are 350, then selling price variance will be _____________.

      1. $87, 500
      2. $97, 500
      3. $67, 500
      4. $57, 500
      Reveal answer Fill a bubble to check yourself
      A Correct answer
      Explanation

      Selling Price Variance = (Actual Price - Standard Price) * Actual Quantity. Given the garbled input, if we assume the standard price was 250 and actual price was 500, the variance is (500 - 250) * 350 = 250 * 350 = 87,500.

      Multiple choice commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

      Pricing policies may be classified into.

      1. Target rate of return

      2. Stability in prices

      3. Maximising profit

      4. Minimising cost
      Reveal answer Fill a bubble to check yourself
      D Correct answer
      Explanation

      Pricing policies are often categorized by their objectives, such as maximizing profit, maintaining stability, or minimizing costs. Minimizing cost is a valid strategic objective for pricing policy.

      Multiple choice commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

      Which of the following is not a geographic pricing?

      1. FOB pricing

      2. Zone pricing

      3. Basic point pricing

      4. Dual pricing
      Reveal answer Fill a bubble to check yourself
      D Correct answer
      Explanation

      Geographic pricing involves adjusting prices based on the buyer's location (e.g., FOB, Zone, Base point). Dual pricing refers to charging different prices for the same product in different markets or to different customer segments, which is not inherently geographic.

      Multiple choice commercial applications marketing mix - 4 p's meaning and objectives of pricing pricing strategies pricing

      Price ling is closely related to.

      1. Psychological prices

      2. Customary prices

      3. Prestige prices

      4. Both (A) and (B)
      Reveal answer Fill a bubble to check yourself
      D Correct answer
      Explanation

      Price lining is the practice of selling merchandise at a limited number of predetermined price points. This is closely related to psychological pricing (making prices look more attractive) and customary pricing (prices that consumers expect to pay).