Tag: meaning and functions of finance and accounts department

Questions Related to meaning and functions of finance and accounts department

Which of the following is said to be the lifeblood of an organization?

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Debentures

  2. Finance

  3. Material

  4. Goodwill

Show answer
Correct Option: B
Explanation:

Finance is regarded as the lifeblood of a business enterprise. It is the basic foundation of all kinds of economic activities. Finance is the master key that provides access to all the sources for being employed in manufacturing and merchandising activities. The success of an organization largely depends on efficient management of its finances.

Money required for carrying out business activties is called ___________.

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. financial management

  2. business finance

  3. finance

  4. cost management

Show answer
Correct Option: B
Explanation:

Business finance refers to money and credit employed in business. It involves procurement and utilization of funds so that business firms may be able to carry out their operations effectively and efficiently.

Every business enterprise must undertake such business which is_________________.

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Unlawful

  2. Lawful

  3. Illegal

  4. All of above

Show answer
Correct Option: B
Explanation:

Every business enterprise must undertake such business which is lawful. All business organization should adhere to the law of the country to ensure peace and order. Illegal and unlawful business organizations should not be undertaken.

BIFR means.

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Board for Industrial and Financial Reconstruction

  2. Board for International and Financial Reconstruction

  3. Board for Industrial and Forex Reconstruction

  4. Board for International and Forex Revival

Show answer
Correct Option: A
Explanation:

Board for Industrial and Financial Reconstruction $(BIFR)$ is a board setup by the Government of India, in order to tackle the problem of industrial sickness, under the purview of Sick Industrial Companies (Special Provisions) Act,$1985$ $(SICA)$.

Interest paid by other than financial enterprises is shown in cash flow statement under ________________.

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Operating activities

  2. Investing activities

  3. Financing activities

  4. None of the above

Show answer
Correct Option: C

To guard against the dangers of excess payment arising out of double insurance or over insurance made by the insured, insurance companies provide in their agreement _________________.

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Average clause

  2. Subrogation clause

  3. Risk clause

  4. Indemnity clause

Show answer
Correct Option: D

Interest rate in cash credit is normally ______ bank credit account.

organisation of commerce and management business capital/finance finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

  1. higher than

  2. same

  3. lower than

  4. none of the above

Show answer
Correct Option: C
Explanation:

Interest rate in cash credit is normally lower than bank credit account. Cash credit is a type of borrowing which can be obtained from the bank savings account without having credit balance, whereas bank credit refers to a loan which is issued by the banking company and which are to be repaid by the borrower with a higher interest rate.

Cash credit is normally given on security of stock, debtors etc. whereas bank credit is normally given on security of a fixed asset.

organisation of commerce and management business capital/finance finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Cash credit is normally given on security of stock, debtors etc. whereas bank credit is normally given on security of a fixed asset- this is a rue statement.Cash credit is a type of borrowing which can be obtained from the bank savings account without having credit balance.

Factor(s) to consider before choosing trade credit or bank credit is/are _______.

organisation of commerce and management business capital/finance finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

  1. Rate of interest

  2. Processing fees

  3. Foreclosure charges

  4. All of the above

Show answer
Correct Option: D
Explanation:
 Trade credit is provided by the suppliers whereas bank credit is provided by the banking companies. Factors to consider before choosing trade credit or bank credit are:a) Rate of interest
b) Processing fees
c) Foreclosure charges.

The Headquarters of World Bank is situated at ______________.

organisation of commerce and management business capital/finance finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

  1. London

  2. Washington DC

  3. New York

  4. Geneva

Show answer
Correct Option: B
Explanation:

The World Bank was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF).

 The World Bank and the IMF are both based in Washington, D.C., and work closely with each other.

The World Bank is an international organization dedicated to providing financing, advice and research to developing nations to aid their economic advancement.