Commerce MCQs

Double Entry System was introduced in–
(A) America
(B) Japan
(C) India
(D) Italy
Answer: Italy

The modern double-entry bookkeeping system can be attributed to the 13th and 14th centuries when it started to become widely used by Italian merchants. The first known documentation of the double-entry system was first recorded in 1494 by Luca Pacioli, who is widely known today as the “Father of Accounting” because of the book he published that year detailing the concepts of the double-entry bookkeeping method.

A large amount spent on special advertisement is–
(A) Capital Expenditure
(B) Revenue Expenditure
(C) Revenue Loss
(D) Deferred Revenue Expenditure
Answer: Deferred Revenue Expenditure

Which of the following errors are not disclosed by Trial Balance ?
(A) Compensatory Errors
(B) Errors of Principle
(C) Errors of Omission
(D) All the three
Answer: All the three

A machinery is purchased for Rs. 3,00,000 and Rs. 50,000 is spent on its installation. Rs. 5,000 is spent on fuel. What will be the amount of capital expenditure ?
(A) Rs. 3,00,000
(B) Rs. 3,50,000
(C) Rs. 3,55,000
(D) None of these
Answer: Rs. 3,50,000

Insurable interest must be present at the time of insurance proposal and payment of claims in–
(A) Fire Insurance
(B) Marine Insurance
(C) Life Insurance
(D) Motor Insurance
Answer: Fire Insurance

The minimum number of members required for registration of a cooperative society are–
(A) Two
(B) Seven
(C) Ten
(D) Twenty
Answer: Ten

A public corporation is set up–
(A) By a Special Act of Parliament
(B) By a special order of the Government
(C) Under Indian Companies Act, 1956
(D) By none of the above
Answer: By a Special Act of Parliament

The product range is widest in case of–
(A) Chain store
(B) Departmental store
(C) Speciality shop
(D) One price shop
Answer: Departmental store

An association of cement manufacturers is an example of–
(A) Diagonal combination
(B) Vertical combination
(C) Horizontal combination
(D) Lateral combination
Answer: Horizontal combination

Bad loans in banking terminology are generally known as–
(A) BPOs
(B) Prime Asset
(C) NPAs
(D) CBS
Answer: NPA’s