Commerce Exam  >  Commerce Notes  >  Additional Study Material for Commerce  >  Very Short Type Questions - Business Arithmetic, Entrepreneurship, Class 12

Very Short Type Questions - Business Arithmetic, Entrepreneurship, Class 12 | Additional Study Material for Commerce PDF Download

Q1. What is working capital ? (1 mark)
Ans.
Money needed to fund the normal day-to-day operations of a business is known as working capital.

Q2. What is operating cycle or cash conversion cycle ? (TBQ) (2 marks)
Ans.
It is the length of time between a firm’s purchase of inventory and the receipt of cash from accounts receivable.

Q3. What are current assets ? Give examples. (2 marks)
Ans.
Current assets comprise of items that would get converted into cash in the short-run, say within normal operating cycle of the busines, e.g., stock, debtors, etc.

Q4. What are current liabilities ? Give examples. (2 marks)
Ans.
Current liabilities represent short-term source of funds and are expected to fall due or mature for payment in a short period, generally within a year, e.g., trade creditors, outstanding expenses, etc.

Q5. What kinds of items are included in the working capital ? (2 marks)
Ans.
Working capital includes salary & wages, cost of raw materials on utilities like water, electricity, fuel, advertising and publicity, transport, commission, rent, taxes, stationery, sales expenses, etc.

Q6. What do you mean by depreciation ? (1 mark)
Ans.
Depreciation means reducing the balance of fixed assets due to wear and tear over the passage of time.

The document Very Short Type Questions - Business Arithmetic, Entrepreneurship, Class 12 | Additional Study Material for Commerce is a part of the Commerce Course Additional Study Material for Commerce.
All you need of Commerce at this link: Commerce
4 videos|168 docs

Top Courses for Commerce

4 videos|168 docs
Download as PDF
Explore Courses for Commerce exam

Top Courses for Commerce

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Class 12 | Additional Study Material for Commerce

,

video lectures

,

Very Short Type Questions - Business Arithmetic

,

MCQs

,

Very Short Type Questions - Business Arithmetic

,

Entrepreneurship

,

Free

,

Extra Questions

,

Sample Paper

,

ppt

,

Class 12 | Additional Study Material for Commerce

,

past year papers

,

study material

,

Objective type Questions

,

Important questions

,

Exam

,

Very Short Type Questions - Business Arithmetic

,

shortcuts and tricks

,

Entrepreneurship

,

mock tests for examination

,

Viva Questions

,

pdf

,

Class 12 | Additional Study Material for Commerce

,

Previous Year Questions with Solutions

,

Summary

,

Semester Notes

,

practice quizzes

,

Entrepreneurship

;