SEBI Grade A 2022 : Commerce & Accountancy Practice Question | Set-1

Correct Answer –C. Current liabilities

Explanation: The debts which are to be repaid within a short period (year or less) are known as Current liabilities. Current liabilities are a company’s debts or obligations that are due within one year or within a normal operating cycle.

Correct Answer –A. Intanible Assests

Explanation: Patents, Copyrights and Trademarks are Intangible assets. An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets.

Correct Answer –D. Current Assests

Explanation: The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as Current assets. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.

Correct Answer – A. Intanible Assests

Explanation: The long term assets that have no physical existence but are rights that have value is known as Intangible assets. An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets.

Correct Answer – D. All of the above

Explanation: Accounting provides information on Cost and income for managers, Company’s tax liability for a particular year and Financial conditions of an institutions.

 Correct Answer – D. Same day

Explanation: In Journal, the business transaction is recorded Same day. A journal, which is also known as a book of original entry, is the first place that a transaction is written in accounting records.

Correct Answer – B. Dealings in commodities

Explanation: Real account records Dealings in commodities.

Correct Answer – A. Nominal account

Explanation: The account that records expenses, gains and losses is Nominal account. A nominal account is an account in which accounting transactions are stored for one fiscal year.

Correct Answer –A. Voucher

Explanation: Any written evidence in support of a business transaction is called Voucher. Vouchers are the primary evidence of business transactions having taken place.

Correct Answer – B. Turnover

Explanation: The sales income (Credit and Cash) of a business during a given period is called Turnover. In the investment industry, turnover is defined as the percentage of a portfolio that is sold in a particular month or year.