Questions in: Corporate/Business Roles

Right Answer:
Marginal cost per unit is Rs 2.00, and fixed cost is Rs 10,000.

Right Answer:
The rate per cent per annum is 10%.

Right Answer:
True.

Right Answer:
Accounting is important in business because it provides a systematic way to record, analyze, and report financial transactions, helping businesses track their performance, make informed decisions, ensure compliance with regulations, and communicate financial health to stakeholders.

Right Answer:
Unredeemed interest refers to the interest that has accrued on a bond or loan but has not yet been paid to the bondholder or lender.

Right Answer:
The four classifications of Bad and Doubtful Debts as per the context of the Bank are:

1. Standard Assets
2. Sub-Standard Assets
3. Doubtful Assets
4. Loss Assets

Right Answer:
A provision is an amount set aside from profits to cover a future liability or expense that is uncertain in timing or amount. The journal entry for creating a provision is:

**Debit:** Expense Account
**Credit:** Provision Account (Liability)

Right Answer:
1. Recording financial transactions
2. Classifying financial data
3. Summarizing financial information
4. Analyzing financial results
5. Reporting financial performance
6. Ensuring compliance with regulations
7. Assisting in budgeting and forecasting
8. Providing information for decision-making

Right Answer:
Accounts primarily focus on recording, classifying, and summarizing financial transactions, while finance involves managing assets, investments, and liabilities to maximize value and ensure financial stability.

Right Answer:
Operative accounts are accounts that are actively used in the day-to-day operations of a business, typically including revenue, expenses, assets, and liabilities that directly impact the financial performance and position of the company.

Right Answer:
B.E.P (Break-Even Point) = Fixed Costs / Contribution Margin per unit.

First, calculate Fixed Costs:
Profit = Sales - Variable Costs - Fixed Costs
20,000 = 1,00,000 - 50,000 - Fixed Costs
Fixed Costs = 1,00,000 - 50,000 - 20,000 = 30,000

Next, calculate Contribution Margin:
Contribution Margin = Sales - Variable Costs = 1,00,000 - 50,000 = 50,000

Now, B.E.P = Fixed Costs / Contribution Margin
B.E.P = 30,000 / (50,000 / 1,00,000) = 30,000 / 0.5 = 60,000

So, the Break-Even Point (B.E.P) is Rs 60,000.

Right Answer:
Back Flash Accounting is a method used to record costs after the production process has occurred, rather than tracking costs in real-time. It simplifies accounting by assigning costs to products based on the final output rather than detailed tracking of each input.

For example, if a company produces 1,000 units of a product, it may calculate the total costs of materials and labor after production is complete and then allocate those costs evenly across the 1,000 units, rather than tracking each individual material and labor cost during the production process.

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Partitioning is the process of dividing a company's financial statements or accounts into separate sections or segments to improve clarity, analysis, and reporting.

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Extraordinary items are significant gains or losses that are both unusual and infrequent in nature, which are reported separately on a company's income statement.

Right Answer:
In accounting, "premises" refers to the physical location or property where a business operates, including buildings and land used for business activities.

VAT adjustment is the process of correcting or modifying the Value Added Tax amounts that a business has reported or paid, often due to changes in transactions, errors, or refunds.

Right Answer:
Wasting assets are natural resources or assets that have a limited lifespan and deplete over time, such as minerals, oil, or timber.

Right Answer:
Interest accrual refers to the process of recognizing and recording interest expense or income that has been incurred or earned but not yet paid or received. It reflects the accumulation of interest over time in financial statements.

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Closures of accounts refer to the process of finalizing financial records for a specific period, ensuring all transactions are recorded and reconciled. Premature closures occur when accounts are closed before all necessary transactions and adjustments are completed, potentially leading to inaccuracies in financial reporting.

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Yes. Cash budgets must be prepared before operating income budgets to ensure that the company has enough cash flow to support its operations and planned expenses.

Right Answer:
Daily accrual refers to the process of recognizing expenses and revenues that have been incurred but not yet recorded in the financial statements on a daily basis. Booking, in this context, means entering these accrued amounts into the accounting system to ensure that the financial records reflect the company's true financial position.