Tag: commercial applications

Quizzes (170) Questions (1551)

Questions Related to commercial applications

Multiple choice 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

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

  1. Sole proprietor

  2. Corporate body

  3. Both

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

Multiple choice 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

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

  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
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

Multiple choice 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

Surplus revealed by Income and expenditure account ___________.

  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
Reveal answer Fill a bubble to check yourself
B Correct answer
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. '

Multiple choice 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

Income and Expenditure Account is prepared on ____________.

  1. Cash basis

  2. Accrual basis

  3. Hybrid basis

  4. Either (A) or (B)
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

Multiple choice 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

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. 

  1. Receipt & Expenditure A/c

  2. Income & Payment A/c

  3. Profit & Loss A/c

  4. Any of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
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".

Multiple choice 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

Income and Expenditure Account is equivalent to ____________.

  1. Profit and Loss Account

  2. Receipts and Payments Account

  3. Balance Sheet

  4. Receipts and Expenditure Account
Reveal answer Fill a bubble to check yourself
A Correct answer
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".

Multiple choice 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

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

  1. Asset = Capital + Liabilities

  2. Capital + Liabilities = Assets

  3. Accumulated fund + Liabilities = Assets

  4. Liabilities = Asset + Accumulated fund
Reveal answer Fill a bubble to check yourself
C Correct answer
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.
$Accumulated\quad fund+Liabilities=Assets$.

Multiple choice 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

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

  1. Equity

  2. Accumulated fund/Capital fund

  3. Cash fund

  4. Financial reserve
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

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

  1. Publicity

  2. Public relations

  3. Advertising

  4. Sales promotion
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Public relations involves building good relations with the public and maintaining a positive image, which is a strategic form of persuasion used in sales promotion and marketing.

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

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.

  1. $1$
  2. $2$
  3. $3$

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