Tag: organisation of commerce and management

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Questions Related to organisation of commerce and management

Multiple choice organisation of commerce and management cash book and bank related transactions objectives and importance of bank reconciliation statement meaning of petty cash book bank balance, bank overdraft, meaning, and bank reconciliation statement

While preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point unpresented cheque are:

  1. Added

  2. Subtracted

  3. Not required to be adjusted

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

Unpresented cheques are cheques issued by the business but not yet presented for payment at the bank. Since the cash book balance was reduced when the cheque was issued, but the bank balance has not yet been reduced, the cash book balance is lower than the bank balance; thus, it must be added.

Multiple choice organisation of commerce and management cash book and bank related transactions objectives and importance of bank reconciliation statement meaning of petty cash book bank balance, bank overdraft, meaning, and bank reconciliation statement

The amount withdrawn by the accountholder from his current account in excess of the balance standing in that account upto specified limit is known as 'Bank Overdraft'.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A bank overdraft is a credit facility that allows an account holder to withdraw more money than is available in their current account, up to a pre-approved limit.

Multiple choice organisation of commerce and management cash book and bank related transactions objectives and importance of bank reconciliation statement meaning of petty cash book bank balance, bank overdraft, meaning, and bank reconciliation statement

Bank Reconciliation statement is prepared by: 

  1. Bank

  2. Customer of bank

  3. Creditors of a business

  4. Neither of the three
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A Bank Reconciliation Statement is a document prepared by the account holder (the business) to reconcile their internal records (Cash Book) with the bank's records (Pass Book).

Multiple choice organisation of commerce and management cash book and bank related transactions objectives and importance of bank reconciliation statement meaning of petty cash book bank balance, bank overdraft, meaning, and bank reconciliation statement

The debit balance of Rs. 112 as on the previous day was brought forward as a credit balance of Rs.121 in a Cash Book. When the balance as per Cash Book is the starting point __________ .

  1. Rs. 112 to be added

  2. Rs. 121 to be added

  3. Rs. 233 to be added

  4. Rs. 233 to be subtracted
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The cash book was supposed to show a debit of 112 but shows a credit of 121. The difference is 112 + 121 = 233. Since the balance was recorded as a credit instead of a debit, the cash book is understated by 233, so it must be added to reconcile.

Multiple choice organisation of commerce and management cash book and bank related transactions objectives and importance of bank reconciliation statement meaning of petty cash book bank balance, bank overdraft, meaning, and bank reconciliation statement

Which of the following items is to be appear in the Bank Reconciliation Statement if the balance as per Amended Cash Book is taken as the starting point:

  1. Bank Charges and Interest charged by Bank

  2. Interest allowed and Direct Payments by Bank

  3. Direct Payment by our Debtors into the bank

  4. A wrong entry in the Pass Book
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When using an Amended Cash Book, all standard timing differences (like bank charges or direct payments) are already adjusted in the cash book. A wrong entry in the Pass Book is an error made by the bank, which must be adjusted in the BRS.

Multiple choice organisation of commerce and management marketing mix meaning and objectives of pricing pricing strategies pricing

Fundamental characteristic(s) of relevant costs:
I. They are future costs
II. They differ between alternatives
III. They are Marginal costs
IV. They are fixed costs.

  1. I and II are correct

  2. III and IV are correct

  3. I and III are correct

  4. All are correct
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Relevant costs for decision-making must be future-oriented and must differ between the alternatives being considered. Past costs (sunk costs) are irrelevant.

Multiple choice organisation of commerce and management marketing mix meaning and objectives of pricing pricing strategies pricing

Internal factors of product pricing includes.

  1. Demand and competition

  2. Cost and demand

  3. Market channels and demand

  4. Cost and objectives
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Internal factors affecting pricing include the company's cost structure and its strategic objectives. External factors include demand, competition, and market conditions.

Multiple choice organisation of commerce and management marketing mix meaning and objectives of pricing pricing strategies pricing

Marginal (minimum) cost occurs at the output where __________.

  1. the total product is at a maximum.

  2. the marginal prefect of the variable factors is at a maximum.

  3. the factors are combined In their best possible proportion.

  4. the average product of the variable factors is at a maximum.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Marginal cost is related to the marginal product of variable factors. When the marginal product of a variable factor is at its maximum, the marginal cost of production is at its minimum.