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All questions of Financial Accounting Part - 2 for Commerce Exam
________ the amount which is incurred in acquiring or improving the value of fixed assets- a)Capital expenditure
- b)Capital receipt
- c)Revenue receipt
- d)Revenue Expenditure
Correct answer is option 'A'. Can you explain this answer?
________ the amount which is incurred in acquiring or improving the value of fixed assets
a)
Capital expenditure
b)
Capital receipt
c)
Revenue receipt
d)
Revenue Expenditure
|
Kiran Mehta answered |
An expenditure which results in the acquisition of permanent asset which is intended to be permanently used in the business for the purpose of earning revenue is capital expenditure.
It is the money spent by a business organization on acquiring or maintaining fixed assets such as land, building and equipment.
A nonprofit organization's assets that have been designated by its board of directors for a specific project should be reported on the external financial statements as__________________ net assets.- a)Unrestricted
- b)Temporarily restricted
- c)Permanently restricted
- d)None
Correct answer is option 'A'. Can you explain this answer?
A nonprofit organization's assets that have been designated by its board of directors for a specific project should be reported on the external financial statements as__________________ net assets.
a)
Unrestricted
b)
Temporarily restricted
c)
Permanently restricted
d)
None
|
Shruti Mehta answered |
Explanation:
Nonprofit organizations receive funds from various sources like donors, grants, and fundraising events. These funds can be categorized as restricted or unrestricted based on the donor's intention.
Restricted funds are those that donors or grantors designate for a specific purpose or project. These funds can be further categorized as temporarily or permanently restricted.
- Temporarily restricted funds - These funds are restricted for a specific purpose or project for a limited period of time. Once the purpose or project is completed, the funds become unrestricted.
- Permanently restricted funds - These funds are restricted for a specific purpose or project permanently.
On the other hand, unrestricted funds are not designated for any specific purpose or project, and the nonprofit organization can use these funds for any of its operating expenses or other purposes.
Answer:
When a nonprofit organization's board of directors designates assets for a specific project or purpose, it means that these funds are restricted for that project or purpose, but for a limited period of time. Hence, these assets should be reported as unrestricted net assets on the external financial statements.
Therefore, the correct answer is option 'A'.
Nonprofit organizations receive funds from various sources like donors, grants, and fundraising events. These funds can be categorized as restricted or unrestricted based on the donor's intention.
Restricted funds are those that donors or grantors designate for a specific purpose or project. These funds can be further categorized as temporarily or permanently restricted.
- Temporarily restricted funds - These funds are restricted for a specific purpose or project for a limited period of time. Once the purpose or project is completed, the funds become unrestricted.
- Permanently restricted funds - These funds are restricted for a specific purpose or project permanently.
On the other hand, unrestricted funds are not designated for any specific purpose or project, and the nonprofit organization can use these funds for any of its operating expenses or other purposes.
Answer:
When a nonprofit organization's board of directors designates assets for a specific project or purpose, it means that these funds are restricted for that project or purpose, but for a limited period of time. Hence, these assets should be reported as unrestricted net assets on the external financial statements.
Therefore, the correct answer is option 'A'.
Which form of financing is allowed for a nonprofit organization?- a)Sale of equity securities
- b)None
- c)Debt
- d)Both
Correct answer is option 'C'. Can you explain this answer?
Which form of financing is allowed for a nonprofit organization?
a)
Sale of equity securities
b)
None
c)
Debt
d)
Both
|
Devansh Goyal answered |
Financing for Nonprofit Organizations
Nonprofit organizations are entities that exist to achieve social, charitable, or educational objectives, rather than to generate profits for owners or shareholders. As such, nonprofit organizations are not allowed to issue equity securities, as they have no owners or shareholders to whom they can sell shares. However, nonprofit organizations can obtain financing through debt.
Debt Financing
Debt financing involves borrowing money from a lender, such as a bank or a bondholder, with the promise of paying back the borrowed amount plus interest over a specified period. Nonprofit organizations can obtain debt financing in various forms, including:
1. Bank Loans: Nonprofit organizations can apply for loans from commercial banks or credit unions. These loans may be secured or unsecured, and interest rates vary depending on the creditworthiness of the organization.
2. Bonds: Nonprofit organizations can also issue bonds to raise funds. Bonds are debt securities that pay interest to bondholders over a specified period. The interest rate on bonds is typically higher than that of bank loans, but the issuance process is more complicated.
3. Lines of Credit: Nonprofit organizations can establish lines of credit with commercial banks, which allow them to borrow money as needed up to a predetermined limit.
Benefits of Debt Financing
Debt financing can offer several benefits to nonprofit organizations, including:
1. Control: Nonprofit organizations retain full control over their operations, as they do not have to answer to shareholders or give up ownership stakes.
2. Tax Benefits: Interest payments on debt are tax-deductible, which can help lower the organization's tax liability.
3. Flexibility: Debt financing offers more flexibility than equity financing, as nonprofits can negotiate the terms of the loan or bond issuance.
In conclusion, nonprofit organizations are not allowed to issue equity securities, but they can obtain financing through debt. Debt financing offers several benefits to nonprofit organizations, including control, tax benefits, and flexibility.
Nonprofit organizations are entities that exist to achieve social, charitable, or educational objectives, rather than to generate profits for owners or shareholders. As such, nonprofit organizations are not allowed to issue equity securities, as they have no owners or shareholders to whom they can sell shares. However, nonprofit organizations can obtain financing through debt.
Debt Financing
Debt financing involves borrowing money from a lender, such as a bank or a bondholder, with the promise of paying back the borrowed amount plus interest over a specified period. Nonprofit organizations can obtain debt financing in various forms, including:
1. Bank Loans: Nonprofit organizations can apply for loans from commercial banks or credit unions. These loans may be secured or unsecured, and interest rates vary depending on the creditworthiness of the organization.
2. Bonds: Nonprofit organizations can also issue bonds to raise funds. Bonds are debt securities that pay interest to bondholders over a specified period. The interest rate on bonds is typically higher than that of bank loans, but the issuance process is more complicated.
3. Lines of Credit: Nonprofit organizations can establish lines of credit with commercial banks, which allow them to borrow money as needed up to a predetermined limit.
Benefits of Debt Financing
Debt financing can offer several benefits to nonprofit organizations, including:
1. Control: Nonprofit organizations retain full control over their operations, as they do not have to answer to shareholders or give up ownership stakes.
2. Tax Benefits: Interest payments on debt are tax-deductible, which can help lower the organization's tax liability.
3. Flexibility: Debt financing offers more flexibility than equity financing, as nonprofits can negotiate the terms of the loan or bond issuance.
In conclusion, nonprofit organizations are not allowed to issue equity securities, but they can obtain financing through debt. Debt financing offers several benefits to nonprofit organizations, including control, tax benefits, and flexibility.
To Know the profitability and financial position of a business we prepared at the end__a)Balance sheetb)Profit and loss accountc)Financial statementd)NoneCorrect answer is option 'C'. Can you explain this answer?
|
Poonam Reddy answered |
Financial statements is the final stage in preparing final accounts. It is prepared to know profitability of the business and is prepared at the end so it is called as final accounts.
Types of account shown in the balance sheet are- a)Real and Personal
- b)Nominal and real
- c)Nominal and personal
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
Types of account shown in the balance sheet are
a)
Real and Personal
b)
Nominal and real
c)
Nominal and personal
d)
None of these
|
|
Shruti Mehta answered |
Types of Accounts in Balance Sheet
There are three types of accounts in accounting – Real, Personal, and Nominal accounts. However, in the balance sheet, only two types of accounts are shown, which are as follows:
Real and Personal Accounts
The balance sheet is a statement of assets and liabilities of an organization. It is divided into two main sections – assets and liabilities. The accounts shown in the balance sheet are of two types:
1. Real Accounts: These accounts represent tangible and intangible assets of the organization. They are shown on the asset side of the balance sheet. Examples of real accounts are land, buildings, machinery, patents, trademarks, etc.
2. Personal Accounts: These accounts represent persons, firms, or institutions with whom the organization has transactions. They are shown on the liability side of the balance sheet. Examples of personal accounts are accounts payable, loans payable, salaries payable, etc.
Nominal accounts are not shown in the balance sheet because they are related to the income and expenses of the organization, which are shown in the income statement.
Conclusion
In conclusion, the balance sheet shows only two types of accounts, which are real and personal accounts. Real accounts represent assets, and personal accounts represent liabilities. Nominal accounts are not shown in the balance sheet because they are related to the income and expenses of the organization, which are shown in the income statement.
There are three types of accounts in accounting – Real, Personal, and Nominal accounts. However, in the balance sheet, only two types of accounts are shown, which are as follows:
Real and Personal Accounts
The balance sheet is a statement of assets and liabilities of an organization. It is divided into two main sections – assets and liabilities. The accounts shown in the balance sheet are of two types:
1. Real Accounts: These accounts represent tangible and intangible assets of the organization. They are shown on the asset side of the balance sheet. Examples of real accounts are land, buildings, machinery, patents, trademarks, etc.
2. Personal Accounts: These accounts represent persons, firms, or institutions with whom the organization has transactions. They are shown on the liability side of the balance sheet. Examples of personal accounts are accounts payable, loans payable, salaries payable, etc.
Nominal accounts are not shown in the balance sheet because they are related to the income and expenses of the organization, which are shown in the income statement.
Conclusion
In conclusion, the balance sheet shows only two types of accounts, which are real and personal accounts. Real accounts represent assets, and personal accounts represent liabilities. Nominal accounts are not shown in the balance sheet because they are related to the income and expenses of the organization, which are shown in the income statement.
Which of the following is another of EBIT (earning before interest and taxes)?- a)Operating profit
- b)Gross Profit
- c)Net Profit
- d)None
Correct answer is option 'A'. Can you explain this answer?
Which of the following is another of EBIT (earning before interest and taxes)?
a)
Operating profit
b)
Gross Profit
c)
Net Profit
d)
None
|
Rajat Patel answered |
EBIT (earnings before interest and taxes) is a company's net income before income tax expense and interest expenses have been deducted. EBIT is used to analyze the performance of a company's core operations without the costs of the capital structure and tax expenses impacting profit.
The expenditure whose amount is heavy and benefit of the likely to be derived over a number of years called- a)Deferred capital expenditure
- b)Deferred revenue expenditure
- c)Both
- d)None
Correct answer is option 'B'. Can you explain this answer?
The expenditure whose amount is heavy and benefit of the likely to be derived over a number of years called
a)
Deferred capital expenditure
b)
Deferred revenue expenditure
c)
Both
d)
None
|
|
Poonam Reddy answered |
In business, Deferred Revenue Expenditure is an expense which is incurred while accounting period. For example, revenue used for advertisement is deferred revenue expenditure because it will keep showing its benefits over the period of two to three years.
All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss account- a)Credited , Debited
- b)Debited, Credited
- c)Credited , Credited
- d)Debited, Debited
Correct answer is option 'D'. Can you explain this answer?
All direct expenses are ___ to Trading account and all indirect expenses are debited to Profit and Loss account
a)
Credited , Debited
b)
Debited, Credited
c)
Credited , Credited
d)
Debited, Debited
|
Aashi Singh answered |
Direct expense are those... Which are directly helping in the production.. Or manufacturing (eg. Freight, octri, factory rent etc) so they are debited to the trading account... And indirect expense are those which are indirectly helping in production process (eg advertisement expenses, carriage outward, postage etc) so they are debited to profit and loss account
Capital receipts are shown in _____- a)Profit and Loss account
- b)Balance Sheet
- c)Trading account
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Capital receipts are shown in _____
a)
Profit and Loss account
b)
Balance Sheet
c)
Trading account
d)
None of these
|
Vikas Kapoor answered |
► Capital receipts can be found in the balance sheet.
► Revenue receipts can be found in the income statement.
► Capital receipts either reduce the assets of the company or create liability for the company.
All assets and liabilities of Non-profit organisation are reported on its statement of- a)Cash Flow statement
- b)Financial position
- c)Income position
- d)Fund flow statement
Correct answer is option 'B'. Can you explain this answer?
All assets and liabilities of Non-profit organisation are reported on its statement of
a)
Cash Flow statement
b)
Financial position
c)
Income position
d)
Fund flow statement
|
Arun Khanna answered |
The status of the assets, liabilities, and owners' equity (and their interrelationships) of an organization, as reflected in its financial statements. Also called financial condition.
If capital in the beginning is more than at the end then it will be- a)Loss
- b)Neither profit or loss
- c)Profit
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
If capital in the beginning is more than at the end then it will be
a)
Loss
b)
Neither profit or loss
c)
Profit
d)
None of these
|
Kritika Bajaj answered |
**Answer:**
To understand why the correct answer is option 'A' (Loss), let's break down the question and the concepts involved.
**1. Understanding Capital:**
In commerce, capital refers to the total amount of money or assets invested in a business or enterprise. It represents the initial investment made by the owners or shareholders to start or expand the business.
**2. Profit and Loss:**
Profit and loss are the two key outcomes that can occur in a business. They are determined by comparing the revenue generated with the expenses incurred during a specific period.
- Profit: When the revenue earned is higher than the total expenses, a business is said to have made a profit. Profit reflects the positive financial performance of a business and is usually the desired outcome.
- Loss: On the other hand, when the expenses exceed the revenue, a business incurs a loss. Loss represents a negative financial performance and is generally considered unfavorable.
**3. The Given Scenario:**
According to the given scenario, the capital in the beginning is more than at the end. This implies that the initial investment or capital has decreased over time, indicating a reduction in the value of the assets or money invested.
**4. Interpreting the Result:**
When the capital in the beginning is greater than at the end, it suggests that the business has experienced a decrease in its overall value. This reduction can occur due to various factors, such as:
- Operating losses: If the business has incurred significant expenses or faced a decline in revenue, it may result in a decrease in capital.
- Depreciation: If the assets owned by the business have depreciated in value over time, it can contribute to a decrease in capital.
- Liabilities: If the business has accumulated debts or liabilities that exceed its assets, it can lead to a reduction in capital.
Therefore, in the given scenario, where the capital at the beginning is more than at the end, the correct answer is option 'A' (Loss). It indicates that the business has incurred a loss, resulting in a decrease in the initial investment or capital.
To understand why the correct answer is option 'A' (Loss), let's break down the question and the concepts involved.
**1. Understanding Capital:**
In commerce, capital refers to the total amount of money or assets invested in a business or enterprise. It represents the initial investment made by the owners or shareholders to start or expand the business.
**2. Profit and Loss:**
Profit and loss are the two key outcomes that can occur in a business. They are determined by comparing the revenue generated with the expenses incurred during a specific period.
- Profit: When the revenue earned is higher than the total expenses, a business is said to have made a profit. Profit reflects the positive financial performance of a business and is usually the desired outcome.
- Loss: On the other hand, when the expenses exceed the revenue, a business incurs a loss. Loss represents a negative financial performance and is generally considered unfavorable.
**3. The Given Scenario:**
According to the given scenario, the capital in the beginning is more than at the end. This implies that the initial investment or capital has decreased over time, indicating a reduction in the value of the assets or money invested.
**4. Interpreting the Result:**
When the capital in the beginning is greater than at the end, it suggests that the business has experienced a decrease in its overall value. This reduction can occur due to various factors, such as:
- Operating losses: If the business has incurred significant expenses or faced a decline in revenue, it may result in a decrease in capital.
- Depreciation: If the assets owned by the business have depreciated in value over time, it can contribute to a decrease in capital.
- Liabilities: If the business has accumulated debts or liabilities that exceed its assets, it can lead to a reduction in capital.
Therefore, in the given scenario, where the capital at the beginning is more than at the end, the correct answer is option 'A' (Loss). It indicates that the business has incurred a loss, resulting in a decrease in the initial investment or capital.
Entrance fee of Rs.2,000 received by Ram and Shyam Social club is- a)Capital receipt
- b)Revenue receipt
- c)Capital expenditures
- d)Revenue expenditures
Correct answer is option 'A'. Can you explain this answer?
Entrance fee of Rs.2,000 received by Ram and Shyam Social club is
a)
Capital receipt
b)
Revenue receipt
c)
Capital expenditures
d)
Revenue expenditures
|
|
Priya Patel answered |
Capital receipts are a non-recurring incoming cash flow into your business, which leads to the creation of a liability (a debt to be paid in the future) and a decrease in company assets (resources that lead to capital gain).
Which of the following statement is false regarding receipt and payment account- a)Give fair idea of earned position
- b)Based on accrual basis
- c)Records all transactions without distinguishing among current , previous and succeeding accounting periods
- d)An assets account
Correct answer is option 'B'. Can you explain this answer?
Which of the following statement is false regarding receipt and payment account
a)
Give fair idea of earned position
b)
Based on accrual basis
c)
Records all transactions without distinguishing among current , previous and succeeding accounting periods
d)
An assets account
|
|
Aryan Khanna answered |
Because accrual basis means recording items in advance. As it already include prepaid rent, outstanding salary etc.
_____ prepared to ascertain gross profit and net profit / loss during an accounting period.- a)Financial statement
- b)Cash flow statement
- c)Balance sheet
- d)Income statement
Correct answer is option 'D'. Can you explain this answer?
_____ prepared to ascertain gross profit and net profit / loss during an accounting period.
a)
Financial statement
b)
Cash flow statement
c)
Balance sheet
d)
Income statement
|
EduRev Humanities answered |
The Income Statement is one of a company’s core financial statements that shows their profit and loss over a period of time. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non-operating activities.
The income statement is one of three statements used in both corporate finance (including financial modeling) and accounting. The statement displays the company’s revenue, costs, gross profit, selling and administrative expenses, other expenses and income, taxes paid, and net profit, in a coherent and logical manner.
Which of the following is not an restricted fund- a)Annuity fund
- b)Assets fund
- c)Prize fund
- d)General fund
Correct answer is option 'D'. Can you explain this answer?
Which of the following is not an restricted fund
a)
Annuity fund
b)
Assets fund
c)
Prize fund
d)
General fund
|
Bhargavi Chopra answered |
Restricted funds in accounting refer to funds that have specific restrictions on their use. These funds are set aside for a particular purpose and cannot be used for any other purpose. The funds are normally set up by non-profit organizations, charities, or government agencies.
Annuity fund, Assets fund, and Prize fund are examples of restricted funds because they are set aside for a particular purpose. Annuity funds are restricted funds that are set up to provide regular payments to an individual or a group of individuals. Assets funds are set up to purchase or maintain specific assets, such as property or equipment. Prize funds are set up to provide rewards or prizes to individuals or organizations that meet specific criteria.
The General fund, on the other hand, is not a restricted fund. The General fund is an unrestricted fund that is used for general operating expenses of an organization. It is not set aside for any specific purpose and can be used for any general purpose of the organization.
In summary, the correct answer is option 'D', the General fund, because it is not a restricted fund.
Annuity fund, Assets fund, and Prize fund are examples of restricted funds because they are set aside for a particular purpose. Annuity funds are restricted funds that are set up to provide regular payments to an individual or a group of individuals. Assets funds are set up to purchase or maintain specific assets, such as property or equipment. Prize funds are set up to provide rewards or prizes to individuals or organizations that meet specific criteria.
The General fund, on the other hand, is not a restricted fund. The General fund is an unrestricted fund that is used for general operating expenses of an organization. It is not set aside for any specific purpose and can be used for any general purpose of the organization.
In summary, the correct answer is option 'D', the General fund, because it is not a restricted fund.
Amount paid for acquiring goodwill is __________.- a)Revenue expenditure
- b)Capital expenditure
- c)Deferred capital expenditure.
- d)Deferred revenue expenditure
Correct answer is option 'B'. Can you explain this answer?
Amount paid for acquiring goodwill is __________.
a)
Revenue expenditure
b)
Capital expenditure
c)
Deferred capital expenditure.
d)
Deferred revenue expenditure
|
|
Alok Mehta answered |
Therefore, CAPEX is both amortized and depreciated, depending on whether it is tangible or intangible. To quote, "Expenses incurred to acquire intangible assets such as goodwill, patents, etc. are also capital expenditure.
Amount of Rs.5,000 spent as lawyers fee to defend a suit claiming that the firm factory site belonged to the plaintiff land is - a)Capital expenditure
- b)Revenue expenditure
- c)Deferred revenue expenditure
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
Amount of Rs.5,000 spent as lawyers fee to defend a suit claiming that the firm factory site belonged to the plaintiff land is
a)
Capital expenditure
b)
Revenue expenditure
c)
Deferred revenue expenditure
d)
None of the above
|
|
Priya Patel answered |
A revenue expenditure is an amount that is expensed immediately—thereby being matched with revenues of the current accounting period. Routine repairs are revenue expenditures because they are charged directly to an account such as Repairs and Maintenance Expense.
Amount spent on unsuccessful patent right is a : - a)Revenue Expenditure (Even though the amount is large)
- b)Deferred Revenue Expenditure (If the amount is large)
- c)Capital Expenditure
- d)None of theses
Correct answer is option 'A'. Can you explain this answer?
Amount spent on unsuccessful patent right is a :
a)
Revenue Expenditure (Even though the amount is large)
b)
Deferred Revenue Expenditure (If the amount is large)
c)
Capital Expenditure
d)
None of theses
|
|
Rajat Patel answered |
Amount spent on unsuccessful patent right is a revenue expenditure as the entire amount spent is a loss with no signs of any recovery in future through any income. Hence, entire amount should be written off all at one go.
Loss caused by theft of cash by cashier after business hours is a : - a)Revenue loss
- b)Deferred revenue loss
- c)Capital loss
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
Loss caused by theft of cash by cashier after business hours is a :
a)
Revenue loss
b)
Deferred revenue loss
c)
Capital loss
d)
None of the above
|
|
Kavita Joshi answered |
Loss of cash due to theft committed either by the employees or by the outsiders, after business hours, is a capital loss because the loss is outside the trade and not incidental to the business. If the loss had been caused during the business hours it would have been a revenue loss because it is incidental to the business.
Brokerage on the issue of shares and debentures is a _______expenditure : - a)Revenue
- b)Capital
- c)Deferred Revenue
- d)Partly capital partly revenue
Correct answer is option 'C'. Can you explain this answer?
Brokerage on the issue of shares and debentures is a _______expenditure :
a)
Revenue
b)
Capital
c)
Deferred Revenue
d)
Partly capital partly revenue
|
|
Rajat Patel answered |
Brokerage on the issue of shares and debentures is a Deferred Revenue Expenditure. This expenditure is incurred in one period but its benefit extends to a period of 3 to 5 years. Hence this amount is deferred and written off.
Following are the Financial statement excepta) Cash Flow statement
b)Income statementc) Balance sheetd)Audit reportCorrect answer is option 'D'. Can you explain this answer?
a) Cash Flow statement
b)Income statement
c) Balance sheet
d)Audit report
Correct answer is option 'D'. Can you explain this answer?
|
Infinity Academy answered |
Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. Financial statements include:
- Balance sheet
- Income statement
- Cash flow statement.
When only closing and opening capital is given and closing capital is greater than opening capital it denotes- a)Profit
- b)Profit if there is no introduction of fresh capital
- c)Loss
- d)None
Correct answer is option 'B'. Can you explain this answer?
When only closing and opening capital is given and closing capital is greater than opening capital it denotes
a)
Profit
b)
Profit if there is no introduction of fresh capital
c)
Loss
d)
None
|
Shriyanshu Keshari answered |
Yes b is right answer as new capital not come and increase in capital therefor we r in profit
Which of the following is not an secondary storage devices- a)Impact storage media
- b)Near line storage device
- c)Online storage media
- d)Offline storage media
Correct answer is option 'A'. Can you explain this answer?
Which of the following is not an secondary storage devices
a)
Impact storage media
b)
Near line storage device
c)
Online storage media
d)
Offline storage media
|
Nandini Iyer answered |
Secondary storage refers to any device that can store data, in addition to main memory. Secondary storage devices are non-volatile and are typically high capacity, portable or both. Factors affecting the choice of a secondary storage device include speed.
Three components of CPU are- a)Central unit, memory unit, logical unit
- b)Control unit, memory unit, thinking unit
- c)Control unit, mouse unit, logical unit
- d)Control unit, memory unit, logical unit
Correct answer is option 'D'. Can you explain this answer?
Three components of CPU are
a)
Central unit, memory unit, logical unit
b)
Control unit, memory unit, thinking unit
c)
Control unit, mouse unit, logical unit
d)
Control unit, memory unit, logical unit
|
Arnav Chawla answered |
Components of CPU
There are three main components of a CPU:
1. Control Unit
The Control Unit (CU) is responsible for directing the flow of data between the CPU and other devices. It retrieves instructions from memory and decodes them, determining the action that needs to be taken. The CU also controls the execution of instructions and manages the flow of data between different parts of the CPU.
2. Memory Unit
The Memory Unit (MU) is responsible for storing data and instructions that are currently being used by the CPU. The memory unit has two types of memory, primary memory or Random Access Memory (RAM) and secondary memory or Read Only Memory (ROM).
3. Arithmetic and Logic Unit
The Arithmetic and Logic Unit (ALU) is responsible for performing arithmetic and logic operations. It performs basic arithmetic operations such as addition, subtraction, multiplication, and division. It also performs logical operations such as AND, OR, and NOT.
The correct answer to the given question is option 'D' - Control unit, memory unit, logical unit. These are the three main components of a CPU that work together to execute instructions and perform operations.
There are three main components of a CPU:
1. Control Unit
The Control Unit (CU) is responsible for directing the flow of data between the CPU and other devices. It retrieves instructions from memory and decodes them, determining the action that needs to be taken. The CU also controls the execution of instructions and manages the flow of data between different parts of the CPU.
2. Memory Unit
The Memory Unit (MU) is responsible for storing data and instructions that are currently being used by the CPU. The memory unit has two types of memory, primary memory or Random Access Memory (RAM) and secondary memory or Read Only Memory (ROM).
3. Arithmetic and Logic Unit
The Arithmetic and Logic Unit (ALU) is responsible for performing arithmetic and logic operations. It performs basic arithmetic operations such as addition, subtraction, multiplication, and division. It also performs logical operations such as AND, OR, and NOT.
The correct answer to the given question is option 'D' - Control unit, memory unit, logical unit. These are the three main components of a CPU that work together to execute instructions and perform operations.
Which of the following is generally considered as a non profit oriented organization?- a)Audit firm
- b)Corporation
- c)Charitable organization
- d)Insurance companies
Correct answer is option 'C'. Can you explain this answer?
Which of the following is generally considered as a non profit oriented organization?
a)
Audit firm
b)
Corporation
c)
Charitable organization
d)
Insurance companies
|
Sankar Chakraborty answered |
Non-Profit Oriented Organization
A non-profit organization (NPO) is an organization that is formed to pursue a specific purpose and does not operate for profit. Instead, any revenue generated is used to further the organization's mission. Non-profit organizations may include charities, religious organizations, and educational institutions. Non-profit organizations are established to serve the public interest, and their resources are used to achieve their goals and objectives.
Charitable Organization
A charitable organization is a specific type of non-profit organization that is formed for the purpose of providing assistance and support to those in need. Charitable organizations typically focus on providing services to disadvantaged individuals, such as the homeless, children, and the elderly. They may also provide support for medical research, education, and other philanthropic causes. Charitable organizations rely on donations from individuals and corporations to support their mission.
Examples of Charitable Organizations
Some examples of charitable organizations include:
- The Red Cross: Provides disaster relief, blood donation services, and other emergency services.
- UNICEF: Provides humanitarian aid and support for children in developing countries.
- The Salvation Army: Provides social services, disaster relief, and support for the homeless population.
- Habitat for Humanity: Builds affordable housing for low-income families.
- Make-A-Wish Foundation: Grants the wishes of children with life-threatening illnesses.
- St. Jude Children's Research Hospital: Provides treatment and research for childhood cancer and other life-threatening diseases.
Conclusion
In conclusion, charitable organizations are a type of non-profit organization that is formed to provide assistance and support to those in need. Charitable organizations rely on donations from individuals and corporations to support their mission. Examples of charitable organizations include The Red Cross, UNICEF, The Salvation Army, Habitat for Humanity, Make-A-Wish Foundation, and St. Jude Children's Research Hospital.
A non-profit organization (NPO) is an organization that is formed to pursue a specific purpose and does not operate for profit. Instead, any revenue generated is used to further the organization's mission. Non-profit organizations may include charities, religious organizations, and educational institutions. Non-profit organizations are established to serve the public interest, and their resources are used to achieve their goals and objectives.
Charitable Organization
A charitable organization is a specific type of non-profit organization that is formed for the purpose of providing assistance and support to those in need. Charitable organizations typically focus on providing services to disadvantaged individuals, such as the homeless, children, and the elderly. They may also provide support for medical research, education, and other philanthropic causes. Charitable organizations rely on donations from individuals and corporations to support their mission.
Examples of Charitable Organizations
Some examples of charitable organizations include:
- The Red Cross: Provides disaster relief, blood donation services, and other emergency services.
- UNICEF: Provides humanitarian aid and support for children in developing countries.
- The Salvation Army: Provides social services, disaster relief, and support for the homeless population.
- Habitat for Humanity: Builds affordable housing for low-income families.
- Make-A-Wish Foundation: Grants the wishes of children with life-threatening illnesses.
- St. Jude Children's Research Hospital: Provides treatment and research for childhood cancer and other life-threatening diseases.
Conclusion
In conclusion, charitable organizations are a type of non-profit organization that is formed to provide assistance and support to those in need. Charitable organizations rely on donations from individuals and corporations to support their mission. Examples of charitable organizations include The Red Cross, UNICEF, The Salvation Army, Habitat for Humanity, Make-A-Wish Foundation, and St. Jude Children's Research Hospital.
Computer of a firm should be classified as- a)Fictitious
- b)Liquid assets
- c)Fixed assets
- d)Current assets
Correct answer is option 'C'. Can you explain this answer?
Computer of a firm should be classified as
a)
Fictitious
b)
Liquid assets
c)
Fixed assets
d)
Current assets
|
|
Vikas Kapoor answered |
Fixed assets can include buildings, computer equipment, software, furniture, land, machinery, and vehicles. For example, if a company sells produce, the delivery trucks it owns and uses are fixed assets.
Capital Receipts are represented in : - a)Balance Sheet
- b)Trading account
- c)Profit & Loss A/c
- d)Manufacturing A/c
Correct answer is option 'A'. Can you explain this answer?
Capital Receipts are represented in :
a)
Balance Sheet
b)
Trading account
c)
Profit & Loss A/c
d)
Manufacturing A/c
|
|
Rajat Patel answered |
Capital receipts are represented in Balance Sheet of the liability side. A reasonable portion out of it is transferred to Profit and Loss Account of each year i.e. it is recognized as income.
Classify the following expenditures and receipts as capital or revenue:Q.Entrance fee of Rs. 2,000 received by Ram and Shyam Social Club.- a)Capital receipt
- b)Revenue receipt
- c)Capital expenditures
- d)Revenue expenditures
Correct answer is option 'A'. Can you explain this answer?
Classify the following expenditures and receipts as capital or revenue:
Q.Entrance fee of Rs. 2,000 received by Ram and Shyam Social Club.
a)
Capital receipt
b)
Revenue receipt
c)
Capital expenditures
d)
Revenue expenditures
|
|
Poonam Reddy answered |
Entrance fee of Rs. 2000 received by social club is an example of capital receipt. This is the income flow from one of the following sources.
1. Cash from the sale of fixed assets
2. Cash from the sale of shares in the business
3. Cash from the issuance of a debt instrument which includes loans and bonds.
This should result either the reduction in government assets (sale of share, disinvestment) or increase in some liability (government borrowings).
A new machine was purchased in Delhi and brought to Jaipur factory site for installation. The machine was damaged during transit and repair expenses were incurred amounting to Rs. 20,000. Such repair will be treated as:
- a)Revenue expenses
- b)Capital expenditure
- c)Deferred revenue expenditure
- d)Reserve
Correct answer is option 'B'. Can you explain this answer?
A new machine was purchased in Delhi and brought to Jaipur factory site for installation. The machine was damaged during transit and repair expenses were incurred amounting to Rs. 20,000. Such repair will be treated as:
a)
Revenue expenses
b)
Capital expenditure
c)
Deferred revenue expenditure
d)
Reserve
|
Jayant Mishra answered |
Explanation: Capital expenditure is the amount spent on acquiring or improving long-term assets such as equipment, buildings or land. This type of expenditure is made with the aim of enhancing the productive life, capacity or efficiency of the asset. In this case, the machine was brought for installation in the factory, which implies that it was meant for long-term use for production purposes. The cost incurred for its repair due to damage during transit is therefore a capital expenditure because it is a once-off cost that will benefit the business in the long term.
Which of the following account is affected from the Drawings of cash in sole- proprietorship business?- a) Capital account
- b) Shareholder account
- c) Liability account
- d) Expense account
Correct answer is option 'A'. Can you explain this answer?
Which of the following account is affected from the Drawings of cash in sole- proprietorship business?
a)
Capital account
b)
Shareholder account
c)
Liability account
d)
Expense account
|
Riya Goswami answered |
Capital account bcoz due to drawing cash account will be affected which in turn also affect the capital account
Share Premium is a :- a)Capital Receipt
- b)Revenue Receipt
- c)Deferred Revenue Receipt
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
Share Premium is a :
a)
Capital Receipt
b)
Revenue Receipt
c)
Deferred Revenue Receipt
d)
None of these
|
|
Jayant Mishra answered |
Share premium is a capital receipt as it is received occasionally when shares are issued and its usage is also restricted. It is shown on the liability side of the balance sheet. It is not in the nature of a regular income and hence its not a revenue receipt
‘A’ purchased a Car on 1.06.2010 for Rs. 5,60,000 and incurred Rs. 25,000 for repairs, etc. He paid Rs. 10,000 as insurance, Rs. 1,500 for petrol. What amount should be debited to Car A/c?- a)Rs. 5,60,000
- b)Rs. 5,96,500
- c)Rs. 5,95,000
- d)Rs. 5,85,000
Correct answer is 'B'. Can you explain this answer?
‘A’ purchased a Car on 1.06.2010 for Rs. 5,60,000 and incurred Rs. 25,000 for repairs, etc. He paid Rs. 10,000 as insurance, Rs. 1,500 for petrol. What amount should be debited to Car A/c?
a)
Rs. 5,60,000
b)
Rs. 5,96,500
c)
Rs. 5,95,000
d)
Rs. 5,85,000
|
|
Priya Patel answered |
All expenses incurred at the time of purchase of a capital asset or to bring the new capital asset in the working condition should be capitalised. The following expenses were incurred at the time of purchase of car:Cost of car Rs. 5,60,000Repairs Rs. 25,000 Insurance Rs. 10,000 Petrol Rs.1,500 Amount debited to Car A/c Rs. 5,96,500
Non-profit organizations prepare all of the following accounts except the- a)Balance sheet
- b)Income statement
- c)Income and expenditure account
- d)Receipt and payment account
Correct answer is option 'B'. Can you explain this answer?
Non-profit organizations prepare all of the following accounts except the
a)
Balance sheet
b)
Income statement
c)
Income and expenditure account
d)
Receipt and payment account
|
Ábhí Ãbhíshék answered |
Becase Not-profit organisation is established for welfare and services for society and the member.they do not operate with objective of earning profit..so that income statement is not prepared in this organisation.
Contribution received by a Non-profit organisation is shown in the statement of activities under the caption- a)Capital
- b)Revenue
- c)Both
- d)None
Correct answer is option 'B'. Can you explain this answer?
Contribution received by a Non-profit organisation is shown in the statement of activities under the caption
a)
Capital
b)
Revenue
c)
Both
d)
None
|
Jatin Sharma answered |
Statement of Activities and Non-profit Organizations
A non-profit organization is a non-commercial entity that operates for a charitable, religious, educational, or social purpose. They are exempt from paying taxes because they do not operate for profit. Non-profit organizations rely on donations, grants, and contributions from individuals, corporations, and foundations to fund their operations.
Statement of Activities
The statement of activities is a financial statement that shows the revenues, expenses, and changes in net assets of a non-profit organization. It is similar to the income statement of a for-profit organization. The statement of activities shows the financial performance of the organization for a specific period, usually a fiscal year.
Revenue
Revenue is the income that a non-profit organization receives from its activities, such as donations, grants, and contributions. Revenue is recognized when it is earned, which means when the organization has fulfilled its obligations to the donor or grantor. Revenue is shown in the statement of activities under the caption of revenue.
Capital
Capital is the assets that a non-profit organization has accumulated over time, such as investments, property, and equipment. Capital is not shown in the statement of activities because it is not related to the financial performance of the organization for a specific period.
Conclusion
In conclusion, the correct answer is option B, revenue. Contributions received by a non-profit organization are shown in the statement of activities under the caption of revenue because they represent the income earned by the organization from its activities. Capital, on the other hand, is not shown in the statement of activities because it is not related to the financial performance of the organization for a specific period.
A non-profit organization is a non-commercial entity that operates for a charitable, religious, educational, or social purpose. They are exempt from paying taxes because they do not operate for profit. Non-profit organizations rely on donations, grants, and contributions from individuals, corporations, and foundations to fund their operations.
Statement of Activities
The statement of activities is a financial statement that shows the revenues, expenses, and changes in net assets of a non-profit organization. It is similar to the income statement of a for-profit organization. The statement of activities shows the financial performance of the organization for a specific period, usually a fiscal year.
Revenue
Revenue is the income that a non-profit organization receives from its activities, such as donations, grants, and contributions. Revenue is recognized when it is earned, which means when the organization has fulfilled its obligations to the donor or grantor. Revenue is shown in the statement of activities under the caption of revenue.
Capital
Capital is the assets that a non-profit organization has accumulated over time, such as investments, property, and equipment. Capital is not shown in the statement of activities because it is not related to the financial performance of the organization for a specific period.
Conclusion
In conclusion, the correct answer is option B, revenue. Contributions received by a non-profit organization are shown in the statement of activities under the caption of revenue because they represent the income earned by the organization from its activities. Capital, on the other hand, is not shown in the statement of activities because it is not related to the financial performance of the organization for a specific period.
Bad-debts written off always affect the:- a)Creditors
- b)Debtors
- c)Cash
- d)None
Correct answer is option 'B'. Can you explain this answer?
Bad-debts written off always affect the:
a)
Creditors
b)
Debtors
c)
Cash
d)
None
|
Darsheel Gupta answered |
Bad debts written off always affects the debtors as it covers the adjustment which was recorded in the balance sheet as the expense of bad debts and was deducted from the debtors .
Recovery of Bad debt is a : - a)Revenue Receipt
- b)Capital Receipt
- c)Capital Expenditure
- d)Revenue Expenditure
Correct answer is option 'A'. Can you explain this answer?
Recovery of Bad debt is a :
a)
Revenue Receipt
b)
Capital Receipt
c)
Capital Expenditure
d)
Revenue Expenditure
|
Deepika Desai answered |
Recovery of bad debt is a revenue receipt. Let's break down the answer into headings and HTML bullet points:
Revenue receipt:
- Revenue receipts are the income earned by a business by selling goods or services or any other operational activity.
- Recovery of bad debt is a revenue receipt as it is the income earned by the business through the recovery of the amount that was previously written off as bad debt.
Capital receipt:
- Capital receipts are the income earned by a business through non-operational activities such as the sale of long-term assets, raising of capital, etc.
- Recovery of bad debt cannot be considered as a capital receipt as it is earned through an operational activity.
Capital expenditure:
- Capital expenditure refers to the expenses incurred by a business for acquiring long-term assets such as buildings, land, machinery, etc.
- Recovery of bad debt cannot be considered as capital expenditure as it does not involve the acquisition of any long-term assets.
Revenue expenditure:
- Revenue expenditure refers to the expenses incurred by a business for the day-to-day operations such as salaries, rent, utilities, etc.
- Recovery of bad debt cannot be considered as revenue expenditure as it does not involve any expenses incurred by the business.
In conclusion, recovery of bad debt is a revenue receipt as it is the income earned by a business through an operational activity.
Revenue receipt:
- Revenue receipts are the income earned by a business by selling goods or services or any other operational activity.
- Recovery of bad debt is a revenue receipt as it is the income earned by the business through the recovery of the amount that was previously written off as bad debt.
Capital receipt:
- Capital receipts are the income earned by a business through non-operational activities such as the sale of long-term assets, raising of capital, etc.
- Recovery of bad debt cannot be considered as a capital receipt as it is earned through an operational activity.
Capital expenditure:
- Capital expenditure refers to the expenses incurred by a business for acquiring long-term assets such as buildings, land, machinery, etc.
- Recovery of bad debt cannot be considered as capital expenditure as it does not involve the acquisition of any long-term assets.
Revenue expenditure:
- Revenue expenditure refers to the expenses incurred by a business for the day-to-day operations such as salaries, rent, utilities, etc.
- Recovery of bad debt cannot be considered as revenue expenditure as it does not involve any expenses incurred by the business.
In conclusion, recovery of bad debt is a revenue receipt as it is the income earned by a business through an operational activity.
The item discount received will appear on the- a)Credit side of Balance sheet
- b)Debit side of Balance sheet
- c)Debit side of Profit and loss account
- d)Credit side of Profit and loss account
Correct answer is option 'D'. Can you explain this answer?
The item discount received will appear on the
a)
Credit side of Balance sheet
b)
Debit side of Balance sheet
c)
Debit side of Profit and loss account
d)
Credit side of Profit and loss account
|
|
Naina Sharma answered |
Discount received will appear in profit & loss account statement credit side, discount received by the buyer when seller allow discount. Generally discount allowed by the supplier when transaction happened on credit basis, such as trade discount, early payment discounts and high volume purchase discounts.
An old machinery is purchased for Rs. 10,000. Installation charges of Rs. 1,000 were incurred. Repairs to the old machinery = Rs. 7,000 Repairs Account will be debited by: - a)Rs. 7,000
- b)Rs. 8,000
- c)Nil
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
An old machinery is purchased for Rs. 10,000. Installation charges of Rs. 1,000 were incurred. Repairs to the old machinery = Rs. 7,000 Repairs Account will be debited by:
a)
Rs. 7,000
b)
Rs. 8,000
c)
Nil
d)
None of the above
|
|
Stuti Desai answered |
Explanation:
When the old machinery is purchased, the cost of the machinery along with any additional expenses incurred to make it functional are recorded as the cost of the machinery. These expenses include installation charges, freight charges, etc.
In this case, the old machinery was purchased for Rs. 10,000 and installation charges of Rs. 1,000 were incurred. Therefore, the total cost of the machinery would be Rs. 11,000 (10,000 + 1,000).
However, repairs to the old machinery were also done which cost Rs. 7,000. Repairs are not considered as a part of the cost of the machinery. Repairs are expenses incurred to maintain the machinery in working condition. Hence, repairs account will be debited by nil.
Therefore, the correct option is C, i.e., nil.
To summarize:
• The cost of the machinery includes the purchase cost along with any additional expenses incurred to make it functional.
• Repairs to the machinery are not considered as a part of the cost of the machinery.
• Repairs account will be debited by nil.
When the old machinery is purchased, the cost of the machinery along with any additional expenses incurred to make it functional are recorded as the cost of the machinery. These expenses include installation charges, freight charges, etc.
In this case, the old machinery was purchased for Rs. 10,000 and installation charges of Rs. 1,000 were incurred. Therefore, the total cost of the machinery would be Rs. 11,000 (10,000 + 1,000).
However, repairs to the old machinery were also done which cost Rs. 7,000. Repairs are not considered as a part of the cost of the machinery. Repairs are expenses incurred to maintain the machinery in working condition. Hence, repairs account will be debited by nil.
Therefore, the correct option is C, i.e., nil.
To summarize:
• The cost of the machinery includes the purchase cost along with any additional expenses incurred to make it functional.
• Repairs to the machinery are not considered as a part of the cost of the machinery.
• Repairs account will be debited by nil.
All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.- a)Unrestricted
- b)Permanently restricted
- c)Temporarily restricted
- d)None
Correct answer is option 'B'. Can you explain this answer?
All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.
a)
Unrestricted
b)
Permanently restricted
c)
Temporarily restricted
d)
None
|
Nabanita Deshpande answered |
The changes in a non-profit organization's net assets are reported under three categories: unrestricted, temporarily restricted, and permanently restricted.
Unrestricted Net Assets: This category includes all the funds that a non-profit organization has without any restrictions. These funds can be used for any purpose that the organization deems necessary.
Temporarily Restricted Net Assets: These funds are restricted for a specific purpose or time. For example, if a donor donates funds for a specific project, those funds will be considered temporarily restricted until the project is completed.
Permanently Restricted Net Assets: These funds are restricted permanently, meaning they cannot be used for any other purpose than the one specified by the donor. For example, if a donor asks that their funds be used to establish a scholarship fund, those funds will be considered permanently restricted.
In the given question, it is stated that all expenses of a non-profit organization are reported as part of the changes in permanently restricted net assets. This means that if the organization has any expenses, they must be paid from funds that are not permanently restricted. Expenses cannot be paid from funds that are restricted for a specific purpose or time.
Therefore, the correct answer is option 'B', as all expenses are not reported as part of the changes in unrestricted or temporarily restricted net assets.
Unrestricted Net Assets: This category includes all the funds that a non-profit organization has without any restrictions. These funds can be used for any purpose that the organization deems necessary.
Temporarily Restricted Net Assets: These funds are restricted for a specific purpose or time. For example, if a donor donates funds for a specific project, those funds will be considered temporarily restricted until the project is completed.
Permanently Restricted Net Assets: These funds are restricted permanently, meaning they cannot be used for any other purpose than the one specified by the donor. For example, if a donor asks that their funds be used to establish a scholarship fund, those funds will be considered permanently restricted.
In the given question, it is stated that all expenses of a non-profit organization are reported as part of the changes in permanently restricted net assets. This means that if the organization has any expenses, they must be paid from funds that are not permanently restricted. Expenses cannot be paid from funds that are restricted for a specific purpose or time.
Therefore, the correct answer is option 'B', as all expenses are not reported as part of the changes in unrestricted or temporarily restricted net assets.
Renewal fee for patent is a:- a)Capital expenditure
- b)Revenue expenditure
- c)Deferred revenue expenditure
- d)Development expenditure
Correct answer is 'B'. Can you explain this answer?
Renewal fee for patent is a:
a)
Capital expenditure
b)
Revenue expenditure
c)
Deferred revenue expenditure
d)
Development expenditure
|
|
Priya Patel answered |
Amount spent on renewal fee for patent right is a revenue expenditure.
Any expenditure incurred in order to reduce the operating expenses is ________.- a)Deferred revenue expenditure
- b)Promotional expenditure
- c)Revenue expenditure
- d)Capital expenditure
Correct answer is option 'D'. Can you explain this answer?
Any expenditure incurred in order to reduce the operating expenses is ________.
a)
Deferred revenue expenditure
b)
Promotional expenditure
c)
Revenue expenditure
d)
Capital expenditure
|
|
Jayant Mishra answered |
An operating expense, operating expenditure, operational expense, operational expenditure or opex is an ongoing cost for running a product, business, or system. Its counterpart, a capital expenditure (capex), is the cost of developing or providing non-consumable parts for the product or system. For example, the purchase of a photocopier involves capex, and the annual paper, toner, power and maintenance costs represents opex.For larger systems like businesses, opex may also include the cost of workers and facility expenses such as rent and utilities.
When cash is received for life membership, which one of the following double entries is passed? - a)Life membership debit and cash credit
- b)Cash debit and capital credit
- c)Investment debit and cash credit
- d)Cash Debit and life membership fund credit
Correct answer is option 'D'. Can you explain this answer?
When cash is received for life membership, which one of the following double entries is passed?
a)
Life membership debit and cash credit
b)
Cash debit and capital credit
c)
Investment debit and cash credit
d)
Cash Debit and life membership fund credit
|
|
Aryan Khanna answered |
Correct Answer :- d
Explanation : Some organisations provide its members an option to pay a lump sum amount to become members for the whole life. The members opting for the life membership are not required to pay a periodic subscription. As this is received only once it is transferred to the Capital fund Account in Balance Sheet. As cash is received, the cash account is debited and it is a liability, so capital/ General fund is credited.
Heavy advertisement expenditure should be treated as :- a)Deferred Revenue Expenditure
- b)Revenue expenditure
- c)Capital Expenditure
- d)None of these.
Correct answer is option 'A'. Can you explain this answer?
Heavy advertisement expenditure should be treated as :
a)
Deferred Revenue Expenditure
b)
Revenue expenditure
c)
Capital Expenditure
d)
None of these.
|
|
Kavita Joshi answered |
Deferred revenue expenditure is that expenditure for which payment has been made or a liability incurred but which is carried forward on the presumption that it will be of benefit over a subsequent period or periods. Heavy advertisement expenditure is the expenditure made in the present which will benefit the organization in the future upcoming years and hence it is a deferred revenue expenditure.
A second hand car is purchased for Rs. 10,000 the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission. The amount debited to car account will be
- a)Rs. 10,000
- b)Rs. 10,500
- c)Rs. 11,500
- d)Rs. 12,700
Correct answer is option 'D'. Can you explain this answer?
A second hand car is purchased for Rs. 10,000 the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission. The amount debited to car account will be
a)
Rs. 10,000
b)
Rs. 10,500
c)
Rs. 11,500
d)
Rs. 12,700
|
Nipun Tuteja answered |
Purchase price of the car: Rs. 10,000
Repair costs: Rs. 1,000
Registration fees: Rs. 500
Dealer's commission: Rs. 1,200
To find the total amount debited to the car account, you would add all these costs together:
Total cost = Purchase price + Repair costs + Registration fees + Dealer's commission
Let's calculate the total cost.
The amount debited to the car account will be Rs. 12,700.
Rs. 1,200 spent on the repairs of machine. - a)Capital expenditure
- b)Revenue expenditure
- c)Deferred revenue expenditure
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
Rs. 1,200 spent on the repairs of machine.
a)
Capital expenditure
b)
Revenue expenditure
c)
Deferred revenue expenditure
d)
None of the above
|
Sanjana Kumar answered |
A revenue expenditure is an amount that is expensed immediately—thereby being matched with revenues of the current accounting period. Routine repairs are revenue expenditures because they are charged directly to an account such as Repairs and Maintenance Expense.
The statement of _______ may be prepared under the direct or indirect method.- a)Cash Flow
- b)Balance sheet
- c)Fund flow
- d)Income statement
Correct answer is option 'A'. Can you explain this answer?
The statement of _______ may be prepared under the direct or indirect method.
a)
Cash Flow
b)
Balance sheet
c)
Fund flow
d)
Income statement
|
Puja Kaur answered |
Statement of Cash Flow and its Preparation Methods
The statement of cash flow is a financial statement that shows the inflows and outflows of cash and cash equivalents during a particular accounting period. This statement is prepared to provide information about the company's ability to generate cash and its use of cash over a specific period. The statement of cash flow can be prepared under two methods, which are the direct method and the indirect method.
Direct Method
The direct method is a method of preparing the statement of cash flow that shows the actual cash inflows and outflows during an accounting period. Under this method, all cash receipts are listed and totaled, and all cash payments are listed and totaled. The difference between the total cash receipts and the total cash payments shows the net increase or decrease in cash during the accounting period. This method is more detailed and provides a better understanding of the company's cash position.
Indirect Method
The indirect method is a method of preparing the statement of cash flow that starts with the net income reported in the income statement and then makes adjustments for non-cash transactions and changes in working capital accounts. Under this method, the net income figure is adjusted for any non-cash expenses, such as depreciation and amortization. Additionally, changes in working capital accounts, such as accounts receivable, accounts payable, and inventory, are adjusted to show their effect on cash flows. The net result of these adjustments is the net increase or decrease in cash during the accounting period.
Conclusion
In conclusion, the statement of cash flow is an important financial statement that shows the cash inflows and outflows of a company during a particular period. The statement of cash flow can be prepared under two methods, which are the direct method and the indirect method. The direct method shows the actual cash inflows and outflows, while the indirect method starts with the net income reported in the income statement and makes adjustments for non-cash transactions and changes in working capital accounts. Both methods provide valuable information about the company's cash position and help stakeholders make informed decisions.
The statement of cash flow is a financial statement that shows the inflows and outflows of cash and cash equivalents during a particular accounting period. This statement is prepared to provide information about the company's ability to generate cash and its use of cash over a specific period. The statement of cash flow can be prepared under two methods, which are the direct method and the indirect method.
Direct Method
The direct method is a method of preparing the statement of cash flow that shows the actual cash inflows and outflows during an accounting period. Under this method, all cash receipts are listed and totaled, and all cash payments are listed and totaled. The difference between the total cash receipts and the total cash payments shows the net increase or decrease in cash during the accounting period. This method is more detailed and provides a better understanding of the company's cash position.
Indirect Method
The indirect method is a method of preparing the statement of cash flow that starts with the net income reported in the income statement and then makes adjustments for non-cash transactions and changes in working capital accounts. Under this method, the net income figure is adjusted for any non-cash expenses, such as depreciation and amortization. Additionally, changes in working capital accounts, such as accounts receivable, accounts payable, and inventory, are adjusted to show their effect on cash flows. The net result of these adjustments is the net increase or decrease in cash during the accounting period.
Conclusion
In conclusion, the statement of cash flow is an important financial statement that shows the cash inflows and outflows of a company during a particular period. The statement of cash flow can be prepared under two methods, which are the direct method and the indirect method. The direct method shows the actual cash inflows and outflows, while the indirect method starts with the net income reported in the income statement and makes adjustments for non-cash transactions and changes in working capital accounts. Both methods provide valuable information about the company's cash position and help stakeholders make informed decisions.
The receipts and payments account of a non-profit organization is a - a)Income statement account
- b)Nominal account
- c)Real account
- d)Financial statement
Correct answer is option 'C'. Can you explain this answer?
The receipts and payments account of a non-profit organization is a
a)
Income statement account
b)
Nominal account
c)
Real account
d)
Financial statement
|
Pallavi Chopra answered |
Explanation:
The receipts and payments account of a non-profit organization is a real account.
Real Account:
Real accounts are accounts that represent assets or liabilities that exist in real life. They are tangible and can be touched, felt and seen. They are not affected by the passage of time and do not have a fixed lifespan. Real accounts are also known as permanent accounts.
Receipts and Payments Account:
The receipts and payments account is a real account that records all the cash receipts and payments of a non-profit organization over a given period of time. It is used to summarize the cash transactions of the organization and is usually prepared at the end of the financial year.
Characteristics of Receipts and Payments Account:
- Real Account
- Records only cash transactions
- Prepared at the end of the financial year
- Summarizes cash transactions of the organization
Conclusion:
In conclusion, the receipts and payments account of a non-profit organization is a real account because it represents the cash transactions of the organization that exist in real life.
The receipts and payments account of a non-profit organization is a real account.
Real Account:
Real accounts are accounts that represent assets or liabilities that exist in real life. They are tangible and can be touched, felt and seen. They are not affected by the passage of time and do not have a fixed lifespan. Real accounts are also known as permanent accounts.
Receipts and Payments Account:
The receipts and payments account is a real account that records all the cash receipts and payments of a non-profit organization over a given period of time. It is used to summarize the cash transactions of the organization and is usually prepared at the end of the financial year.
Characteristics of Receipts and Payments Account:
- Real Account
- Records only cash transactions
- Prepared at the end of the financial year
- Summarizes cash transactions of the organization
Conclusion:
In conclusion, the receipts and payments account of a non-profit organization is a real account because it represents the cash transactions of the organization that exist in real life.
AIS stands for- a)Memory Information System
- b)Management Information Software
- c)Accounting Information System
- d)Management Internal System
Correct answer is option 'C'. Can you explain this answer?
AIS stands for
a)
Memory Information System
b)
Management Information Software
c)
Accounting Information System
d)
Management Internal System
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Dhanya Sree answered |
Option C ..Accounting Information System ,it is a system of collecting, storing and processing financial and accounting data that are used by decision makers.
MIS stands for- a)Management Information System
- b)Memory Information System
- c)Management Internal System
- d)Management Information Software
Correct answer is option 'A'. Can you explain this answer?
MIS stands for
a)
Management Information System
b)
Memory Information System
c)
Management Internal System
d)
Management Information Software
|
Harshad Nair answered |
Management Information System (MIS) - Explanation
Introduction:
MIS stands for Management Information System. It is a computer-based system that helps organizations in managing their operations and decision-making processes. MIS provides timely and accurate information to the management to help them make better decisions.
Functions:
MIS performs the following functions:
- Capturing raw data from various sources and converting it into meaningful information.
- Processing the data to generate reports that provide useful information to the management.
- Storing the data securely to ensure its availability when needed.
- Retrieving the data quickly and accurately when required.
- Providing the management with tools to analyze the data and make informed decisions.
Components:
MIS consists of the following components:
- Hardware: The physical devices that make up the system, such as computers, servers, and storage devices.
- Software: The programs that run on the hardware, such as operating systems, database management systems, and applications.
- Data: The raw material that is processed by the system to generate information.
- Procedures: The rules and guidelines that govern the use of the system.
- People: The individuals who operate and manage the system.
Importance:
MIS is important because it enables organizations to:
- Monitor their operations and performance.
- Identify problems and opportunities.
- Make informed decisions based on accurate and timely information.
- Improve their efficiency and effectiveness.
- Gain a competitive edge in the marketplace.
Conclusion:
In conclusion, MIS is a critical component of modern organizations. It helps them manage their operations and make informed decisions based on accurate and timely information. MIS enables organizations to improve their efficiency, effectiveness, and competitiveness.
Introduction:
MIS stands for Management Information System. It is a computer-based system that helps organizations in managing their operations and decision-making processes. MIS provides timely and accurate information to the management to help them make better decisions.
Functions:
MIS performs the following functions:
- Capturing raw data from various sources and converting it into meaningful information.
- Processing the data to generate reports that provide useful information to the management.
- Storing the data securely to ensure its availability when needed.
- Retrieving the data quickly and accurately when required.
- Providing the management with tools to analyze the data and make informed decisions.
Components:
MIS consists of the following components:
- Hardware: The physical devices that make up the system, such as computers, servers, and storage devices.
- Software: The programs that run on the hardware, such as operating systems, database management systems, and applications.
- Data: The raw material that is processed by the system to generate information.
- Procedures: The rules and guidelines that govern the use of the system.
- People: The individuals who operate and manage the system.
Importance:
MIS is important because it enables organizations to:
- Monitor their operations and performance.
- Identify problems and opportunities.
- Make informed decisions based on accurate and timely information.
- Improve their efficiency and effectiveness.
- Gain a competitive edge in the marketplace.
Conclusion:
In conclusion, MIS is a critical component of modern organizations. It helps them manage their operations and make informed decisions based on accurate and timely information. MIS enables organizations to improve their efficiency, effectiveness, and competitiveness.
Normally the principal portion of an endowment will be classified as _________________ net assets.- a)Temporarily restricted
- b)Unrestricted
- c)Permanently restricted
- d)None
Correct answer is option 'C'. Can you explain this answer?
Normally the principal portion of an endowment will be classified as _________________ net assets.
a)
Temporarily restricted
b)
Unrestricted
c)
Permanently restricted
d)
None
|
|
Ræjü Bhåì answered |
Explanation of option. { C {
When accepted, donations are classified as unrestricted, temporarily restricted and permanently restricted. These assets are broken down on a nonprofit organization's Statement of Financial Position, which is equivalent to a balance sheet. Generally, the majority of donations to nonprofit organizations are unrestricted, which allows the organization to freely utilize the money as they see fit. Temporarily restricted assets come with strings attached — that is, they must be earmarked for certain purposes, but only until expiration of the term stipulated by a donor.
The third type, permanently restricted assets, are usually related to a particularly large donation, the donor of which a majority of the time will specify the purpose of the money. The amount will be meaningful and intended to fund designated areas in perpetuity (i.e., "permanently"). A common type of permanently restricted asset is real estate. For example, an individual or organization may donate a large chunk of real estate to a nonprofit entity, such as a public university, with the restriction that the property only be used to house scientific research labs in perpetuity. The property can never be resold by the university for a capital gain.
Thank You..
When accepted, donations are classified as unrestricted, temporarily restricted and permanently restricted. These assets are broken down on a nonprofit organization's Statement of Financial Position, which is equivalent to a balance sheet. Generally, the majority of donations to nonprofit organizations are unrestricted, which allows the organization to freely utilize the money as they see fit. Temporarily restricted assets come with strings attached — that is, they must be earmarked for certain purposes, but only until expiration of the term stipulated by a donor.
The third type, permanently restricted assets, are usually related to a particularly large donation, the donor of which a majority of the time will specify the purpose of the money. The amount will be meaningful and intended to fund designated areas in perpetuity (i.e., "permanently"). A common type of permanently restricted asset is real estate. For example, an individual or organization may donate a large chunk of real estate to a nonprofit entity, such as a public university, with the restriction that the property only be used to house scientific research labs in perpetuity. The property can never be resold by the university for a capital gain.
Thank You..
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