TN TRB PG Assistant Commerce Mock Test - 1 - TN TET MCQ

Answer: a) Availability of raw materials and labor

Availability of raw materials and labour is a crucial factor when deciding the location of a business. Here are the key considerations:

• Raw Materials: Proximity to essential materials reduces transportation costs and ensures timely supply.
• Labour Supply: Access to a skilled workforce is vital for efficient operations.
• Infrastructure: Availability of transportation, communication, and utilities supports smooth business operations.
• Market Access: Being close to customers can enhance sales and reduce delivery times.
• Regulatory Environment: Local laws and regulations can impact operational costs and business viability.

Choosing the right location can significantly affect production costs and overall success.

• Double-entry booking provides a more accurate look at a company’s financial position than single-entry bookkeeping.
• One reason for this is because double-entry bookkeeping implements the matching principle.
• The matching principle uses accrual accounting rules to record revenue and the expenses related to revenue.
• Recording both revenue and expenses provides an accurate calculation of profits and losses.
• Profits and losses are represented on the income statement, which includes accounts calculated directly from the entries made in double-entry bookkeeping.

In case of partnership type of ownership in a business, partner current account is prepared when capital is fixed. Transactions such as drawings, salary, and interest on capital and drawings are recorded. The balance of this account fluctuates every year. The balance can be both credit or debit.

Operating Activities include cash inflows from the company’s primary revenue-generating activities, such as sales, services, or rent received if it is part of the core business operations\

.Rent received is typically classified under operating activities because it represents income from the normal operations of a business (e.g., a company leasing out property as part of its regular activities). In the indirect method of preparing the cash flow statement, rent received is added to net profit under cash flow from operating activities when adjusting for non-cash and non-operating items.

Investing Activities include cash flows from the acquisition or sale of long-term assets (e.g., property, plant, equipment) or investments, not routine income like rent.

Therefore, the correct classification is D) Operating Activities.

Under the piece wage system, wages are determined based on the output of a worker, not on the time taken to complete a task. Workers are paid a fixed rate for each unit produced, job completed, or operation performed. This system provides an incentive for workers to increase their output in order to earn higher wages.

Emperor penguins are distinct due to their striking black and white coloration with vibrant orange and yellow accents on the head, neck, and breast. This unique coloration helps them blend into their icy Antarctic habitat. Additionally, they possess two layers of feathers and a thick layer of fat which aids in heat retention, enabling them to survive in the extremely harsh Antarctic conditions.

- Statement 1 is incorrect. The protectionist shift post-2010 resulted in increased import duties, which actually hindered India's export capabilities and slowed down economic growth rather than increasing them.

- Statement 2 is correct. The period from 2000 to 2010, often referred to as the "Golden Decade," was characterized by lower import tariffs and saw significant improvements in India's global exports and GDP growth.

- Statement 3 is correct. Recent trends have shown that India's integration with global financial markets, especially in equities, has been stronger compared to its trade integration. This indicates a one-sided integration favoring financial markets over trade.

Therefore, only statements 2 and 3 are correct, which aligns with Option C: 2 and 3 Only.