Tag: business organisation

Questions Related to business organisation

State whether true or false:
In order to verify the accounting transactions, vouchers are considered as a reliable document.

business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

  1. True

  2. False

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Correct Option: A
Explanation:

True. Voucher is a document that acts as an evidence that the payment is made or that a particular transaction has occurred. Vouchers are made for every transactions, they are serially numbered and help to check the authenticity of a particular transaction.

The two types of cash vouchers include debit vouchers and ____________ vouchers.

business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

  1. Credit

  2. Memo

  3. Receipt

  4. Payment

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Correct Option: A
Explanation:

Cash vouchers are of two types viz. debit voucher and credit voucher. A debit voucher is prepared when cash payments are received whereas a credit voucher is prepared when cash payments are made. They are the documentary evidence for payment of cash or for receiving cash.

State whether true or false.
Internal vouchers are prepared by third parties related to the firm.

business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

  1. True

  2. False

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Correct Option: B
Explanation:

False. An internal voucher is prepared by the organisation itself. They can be prepared for the organisation itself or in cases where no documentary evidence is given by the other party. Example:- Counter foils of pay in slip. An external voucher is a voucher that is prepared by the third parties. Example:- A voucher sent by a shopkeeper to the buyer for purchase of goods is an external voucher. 

External vouchers are prepared by the ___________.

business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

  1. Accountant

  2. Third parties

  3. Relatives

  4. Owner

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Correct Option: B
Explanation:

An external voucher is a voucher that is prepared by the third parties. They are like bills or just like any other voucher. Example:- A voucher sent by a shopkeeper to the buyer for purchase of goods is an external voucher. 

Which among the following is an example of a voucher? 

business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

  1. A bill

  2. An Invoice

  3. A Receipt

  4. All of the above

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Correct Option: D
Explanation:

Any documentary evidence supporting the entries recorded in the books of accounts, establishing the arithmetic accuracy of the transaction, may also be referred to as a voucher for example, a bill, invoice, receipt, salary and wages sheet.

REPO is?

business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

  1. Repurchase agreement

  2. Reliance Petroleum

  3. Read and Process

  4. None of the above

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Correct Option: A
Explanation:

A repurchase agreement, or repo for short, is a type of short-term loan much used in the money markets, whereby the seller of a security agrees to buy it back at a specified price and time. The seller pays an interest rate, called the repo rate, when buying back the securities.

The total number of Stock Exchanges in India is:

business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

  1. $21$

  2. $20$

  3. $23$

  4. $22$

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Correct Option: A
Explanation:

There are a total of 21 stock exchanges in India, with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) being the largest. Both offer stocks with volume and opportunity as India and the exchanges continue to grow and attract foreign investment.

The Reserve Bank of India changes the cash reserve ratio from time.

business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

  1. True

  2. False

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Correct Option: A
Explanation:

The Reserve Bank of India changes the cash reserve ratio from time- this is a true statement. Cash reserve ration is one of the quantitative methods of controlling credit creation capacity of the commercial bank. During inflation, Cash reserve ration is raise in order to reduce the money supply in an economy to check inflation and vice-versa.

Paid dividends to common stockholders Rs 67, 600, 000 and common shares outstanding 55, 000, 000 then dividend per share will be _________.

business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

  1. Rs 1.23

  2. Rs 0.81

  3. Rs 2.12

  4. Rs 2.78

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Correct Option: A

A cheque is dishonored by______.

business organisation introduction to financial markets concept of financial market meaning and definition of financial market concepts and functions of financial markets

  1. non payment only.

  2. partial payment.

  3. both a & b.

  4. none of the above.

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Correct Option: C
Explanation:

A cheque is dishonored by both non payment as well as partial payment. A cheque gets dishonored when the bank fails to pay the mentioned amount to payee. When the cheque deposited by anybody for collection or presented for payment gets refused by the bank, it is known as dishonor of cheque.