Tag: commercial applications

Questions Related to commercial applications

In _____ forms of business the owners are directly responsible for the debts of the business.

commercial applications 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 proprietor

  2. Corporate body

  3. Both

  4. None of the above

Show answer
Correct Option: A
Explanation:

Sole proprietorship is type of enterprise that is owned and run by one natural person and in which there is no legal distinction between the owner and business entity. The owner is in direct control of all elements and is legally accountable for the finances of such business and this may include debt, loans, loss, etc.

Income -tax of the sole trader paid is shown ___________.

commercial applications 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. Debited to profit and Loss A/c

  2. Debited to Trading A/c

  3. Debited to his Capital A/c

  4. None of the above

Show answer
Correct Option: C
Explanation:

For a Sole Proprietor, income tax is not an expense incurred to generate revenue hence it is not treated as an expense to be paid out of profits. In this case, income tax is treated as a personal expense resulting in drawings from the business concluding to a reduction of capital.

Surplus revealed by Income and expenditure account ___________.

commercial applications financial accounting and reporting balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations accounting procedure for not-for-profit organisations prepration of income and expenditure account and balance sheet income and expenditure account prepration of income and expenditure account accounting treatment for npo's

  1. is shown as deduction in accumulated fund at the balance sheet

  2. is transferred to an account called capital fund

  3. is distrusted among the members of the non-profit organization

  4. must be donated to other non-profit organization

Show answer
Correct Option: B
Explanation:

b'Income and expenditure account can be defined as an account that reveals surplus or deficit of a non-trading concern by matching incomes and expenses of a specified accounting period. The balance of income and expenditure account is transferred to the balance sheet. Surplus balance is added to the capital fund in balance sheet. '

Income and Expenditure Account is prepared on ____________.

commercial applications financial accounting and reporting balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations accounting procedure for not-for-profit organisations prepration of income and expenditure account and balance sheet income and expenditure account prepration of income and expenditure account accounting treatment for npo's

  1. Cash basis

  2. Accrual basis

  3. Hybrid basis

  4. Either (A) or (B)

Show answer
Correct Option: B
Explanation:

Income and expenditure account is prepared on Accrual basis. Accrual basis of accounting is wherein all the expenses that are actually incurred and incomes actually earned are recorded. Its recorded when its realised and not when received.

Professional people like solicitors, doctors, company secretary, cost accountant, chartered accountants etc., prepare for themselves ___________ which is a modified form of Income & Expenditure A/c prepared by non-trading concerns. 

commercial applications financial accounting and reporting balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations accounting procedure for not-for-profit organisations prepration of income and expenditure account and balance sheet income and expenditure account prepration of income and expenditure account accounting treatment for npo's

  1. Receipt & Expenditure A/c

  2. Income & Payment A/c

  3. Profit & Loss A/c

  4. Any of the above

Show answer
Correct Option: C
Explanation:

Income and Expenditure account prepared by non-trading concerns is very much like the profit and loss account prepared by trading concerns. Both accounts show the expenditure incurred and income earned during the year. In the end balance is calculated. In Income and Expenditure account balance is termed surplus or deficit and in Profit and loss account it is termed "Net Profit" or "Net Loss".

Income and Expenditure Account is equivalent to ____________.

commercial applications financial accounting and reporting balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations accounting procedure for not-for-profit organisations prepration of income and expenditure account and balance sheet income and expenditure account prepration of income and expenditure account accounting treatment for npo's

  1. Profit and Loss Account

  2. Receipts and Payments Account

  3. Balance Sheet

  4. Receipts and Expenditure Account

Show answer
Correct Option: A
Explanation:

Income and Expenditure account prepared by non trading concerns is very much like the profit and loss account prepared by trading concerns. Both account shows the expenditure incurred and income earned during the year. In the end balance is calculated. In Income and Expenditure account balance is termed surplus or deficit and in Profit and loss account it is termed "Net Profit" or "Net Loss".

Which of the following is the accounting equation for a non-profit organization ?

commercial applications financial accounting and reporting balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations accounting procedure for not-for-profit organisations prepration of income and expenditure account and balance sheet income and expenditure account prepration of income and expenditure account accounting treatment for npo's

  1. Asset = Capital + Liabilities

  2. Capital + Liabilities = Assets

  3. Accumulated fund + Liabilities = Assets

  4. Liabilities = Asset + Accumulated fund

Show answer
Correct Option: C
Explanation:

Accounting equation is a statement representing a relationship between a company's assets, liabilities and its capital.

The accounting equation for non-profit organisation is the sum of company's liabilities and the accumulated fund or capital fund which equals to the assets possessed by organisation.
$Accumulated\quad fund+Liabilities=Assets$.

The capital of a non-profit organization is generally known as __________.

commercial applications financial accounting and reporting balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations accounting procedure for not-for-profit organisations prepration of income and expenditure account and balance sheet income and expenditure account prepration of income and expenditure account accounting treatment for npo's

  1. Equity

  2. Accumulated fund/Capital fund

  3. Cash fund

  4. Financial reserve

Show answer
Correct Option: B
Explanation:

The capital for a non-profit organisation is not funded by the owner and thus has to be mentioned as capital fund. This is because capital fund is that account which records all those transactions which are related to capital nature.

A recent form persuation that could be adopted profitable in sales promotion is called:

commercial applications public relations meaning, nature, importance and scope of public relations publicity and public relations marketing mix

  1. Publicity

  2. Public relations

  3. Advertising

  4. Sales promotion

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Correct Option: B

The main purposes of an employment interview is/are.
$1$. To find out the suitability of the candidate.
$2$. To seek more information about the candidate.
$3$. To give him an accurate picture of the job with details of terms and conditions and some idea of organization's policies.
Select the correct answer from the options given.

commercial applications public relations meaning, nature, importance and scope of public relations publicity and public relations marketing mix

  1. $1$

  2. $2$

  3. $3$

  4. All of the above

Show answer
Correct Option: D
Explanation:
Employment interview is mainly conducted to ask questions to the selected candidates. The main purposes of an employment interview are.1) To find out the suitability of the candidate
2) To seek more information about the candidate.
3) To give him an accurate picture of the job with details of terms and conditions and some idea of organization's policies..