Tag: commercial studies

Questions Related to commercial studies

Income Receivable Account is _______.

commercial studies accounting procedures - rules of debit and credit golden rules of debit and credit (traditional approach) types of account meaning and classification of accounts

  1. Personal

  2. Real

  3. Nominal

  4. All of the above

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Correct Option: A
Explanation:

Personal accounts are related to individuals, firms, companies, etc. A few examples of personal accounts are debtors, creditors, banks, outstanding.//prepaid expenses, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc. Personal accounts are classified into three subcategories: Artificial, Natural, and Representative.

Representative personal accounts represents a certain person or a group directly or indirectly.
Income Receivable Account is a representative personal account, i.e it represents the income to be received from a group of persons. Hence, it is classified as a personal account.

Import Duty Account is ________ in nature.

commercial studies accounting procedures - rules of debit and credit golden rules of debit and credit (traditional approach) types of account meaning and classification of accounts

  1. Real

  2. Nominal

  3. Personal

  4. None of the above

Show answer
Correct Option: B
Explanation:

Import duty is a tax collected on imports and some exports by a country's customs authorities. It is usually based on the imported goods value. Depending on the context, import duty may also be referred to as customs duty, tariff, import tax or import tariff.

There are mainly three types of accounts: Real, Personal and Nominal accounts.
Accounts which are related to expenses, losses, incomes or gains are called Nominal accounts. The dictionary meaning of the word :nominal" is "existing in name only" and the meaning remains absolutely true in accounting sense too, because nominal accounts do not really exist in physical form, but behind every nominal account money is involved. The final result of all nominal accounts is either profit or loss which is the transferred to the capital account.
Import Duty Accounts is a direct expense of a business and hence, it is classified as a nominal account.

Copyright A/c is_____.

commercial studies accounting procedures - rules of debit and credit golden rules of debit and credit (traditional approach) types of account meaning and classification of accounts

  1. Real

  2. Personal

  3. Nominal

  4. None of the above

Show answer
Correct Option: A
Explanation:

Real accounts are the accounts that refer to the possessions of a business. The possessions may be tangible and intangible. The possessions are assets of the business.

Normally the books of business contains tangible assets that have physical existence. However, there are intangible assets as well that can appear in the books of accounts. For instance, Copyrights, Trademarks, Goodwill, Patents are intangible in nature but a business certainly possess them. 
The balances of these real accounts are not closed a the financial year end but are carried forward as opening balances of the new financial year.
Copyright is an intangible asset, and hence it is classified as real account.

From the list given below, pick the item that is not a natural resource.

commercial studies striving for a better environment unequal distribution of resources protecting our environment rules are for everyone

  1. Soil

  2. Water

  3. Electricity

  4. Air

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Correct Option: C
Explanation:

Electricity can be created/generated and is man-made. Air, water and soil are all natural resources and cannot be created by humans.

Which of the following is the most appropriate definition of a natural resource?

commercial studies striving for a better environment unequal distribution of resources protecting our environment rules are for everyone

  1. It is present only on land.

  2. It is a gift of nature, which is very useful to mankind.

  3. It is a man-made substance placed in nature.

  4. It is available only in the forest.

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Correct Option: B
Explanation:

Natural resources occur naturally in our environment. They cannot be created by man.

Which of the following is not a natural resource?

commercial studies striving for a better environment unequal distribution of resources protecting our environment rules are for everyone

  1. Mango tree

  2. Snake

  3. Wind

  4. Wooden house

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Correct Option: D
Explanation:

Natural resources are the resources made available by the nature to us. The important natural resources are the trees, animals and climatic factors like wind. All of these can be used variously to generate goods and services for our benefit. For example- trees provide us fruits, fresh air, timber etc. All animals and plants are important for the ecological balance on the Earth. Further some animals are of direct economic benefit for mankind. Climatic factors like sunlight and wind power can be harnessed to generate energy.

Waste utilization is helpful in conservation of

commercial studies striving for a better environment unequal distribution of resources protecting our environment rules are for everyone

  1. Deforestation

  2. Eutrophication

  3. Urbanization

  4. Natural Resources

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Correct Option: D

Sources, in which locations cannot be indentified is known as

commercial studies striving for a better environment unequal distribution of resources protecting our environment rules are for everyone

  1. Stationary Sources

  2. Diffused Sources

  3. Point Sources

  4. Line Sources

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Correct Option: B

From the list given below pick the item that is not a natural resource.

commercial studies striving for a better environment unequal distribution of resources protecting our environment rules are for everyone

  1. Soil

  2. Water

  3. Electricity

  4. Sunlight

Show answer
Correct Option: C
Explanation:

A natural resource is anything that people can use which comes from nature. People do not make natural resources, but gather them from the Earth. Examples of natural resources are air, water, wood, oil, wind energy, iron and coal. Refined oil and hydro-electric energy are not natural resources because people make them.

Most important natural source of energy currently being used is

commercial studies striving for a better environment unequal distribution of resources protecting our environment rules are for everyone

  1. Sunlight

  2. Fossil fuel

  3. Biogas

  4. Atomic energy

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Correct Option: A
Explanation:

The resources which are naturally produced in nature are known as natural resources. The important resource which is used currently is the sunlight. The solar energy can be harnessed for the generation of electricity. The solar panels which help in capturing the energy and conversion to electrical energy.

Thus, the correct answer is option A.