Commerce & Accountancy is a vital subject for students aiming to excel in their school exams and competitive assessments. Mastering this field not only enhances your understanding of financial principles but also significantly boosts your exam scores. Practicing MCQs and objective questions is essential, as it helps you identify important questions and reinforces your exam preparation through targeted practice questions.
What You Will Practise Here
Fundamental concepts of accounting and financial statements
Key principles of commerce including trade, marketing, and economics
Important formulas related to profit and loss, balance sheets, and cash flow
Definitions of key terms such as assets, liabilities, and equity
Diagrams illustrating accounting processes and business models
Theory areas covering the role of commerce in the economy
Analysis of case studies relevant to real-world commerce scenarios
Exam Relevance
Commerce & Accountancy is a significant part of the curriculum for CBSE, State Boards, and various competitive exams like NEET and JEE. Questions often focus on practical applications of concepts, requiring students to solve numerical problems and interpret financial data. Common question patterns include multiple-choice questions that test both theoretical knowledge and practical understanding, making it crucial to be well-prepared.
Common Mistakes Students Make
Misunderstanding the difference between assets and liabilities
Confusing terms related to accounting principles
Overlooking the importance of accurate calculations in numerical questions
Neglecting to review the impact of transactions on financial statements
FAQs
Question: What are the key topics I should focus on in Commerce & Accountancy? Answer: Focus on financial statements, accounting principles, and key formulas to excel in this subject.
Question: How can I improve my performance in Commerce & Accountancy exams? Answer: Regular practice of MCQs and understanding the concepts thoroughly will enhance your performance.
Start solving practice MCQs today to test your understanding and boost your confidence in Commerce & Accountancy. Remember, consistent practice is the key to success in your exams!
Q. A company produces a product with a variable cost of $25 and a selling price of $50. If the company wants to achieve a profit of $15,000 with fixed costs of $30,000, how many units must be sold?
A.
1,000
B.
800
C.
600
D.
1,200
Solution
Required units = (Fixed costs + Target profit) / Contribution margin per unit = ($30,000 + $15,000) / ($50 - $25) = 800 units.
Q. A company purchased a machine for $50,000 with a useful life of 5 years and no salvage value. What is the annual depreciation expense using straight-line method?
Q. A company uses the FIFO method for inventory valuation. If it has 100 units at $10 each and purchases 50 units at $12 each, what is the value of 80 units sold?
A.
$1,000
B.
$1,060
C.
$1,080
D.
$1,200
Solution
Value of 80 units sold = (100 units x $10) + (20 units x $12) = $1,000 + $240 = $1,080.
Q. A company uses the FIFO method for inventory valuation. If the oldest inventory costs $10, $12, and $15, and the company sells 2 units, what is the cost of goods sold?
A.
$22
B.
$25
C.
$27
D.
$30
Solution
Under FIFO, the cost of goods sold for the first 2 units sold is $10 + $12 = $22.
Q. A company uses the units of production method for a machine that produces 100,000 units over its life. If the machine costs $40,000 and has a salvage value of $4,000, what is the depreciation per unit?
A.
$0.36
B.
$0.40
C.
$0.44
D.
$0.50
Solution
Depreciation per unit = (Cost - Salvage Value) / Total Units = ($40,000 - $4,000) / 100,000 = $0.36.
Q. A firm has a debt-to-equity ratio of 1.5. If its total equity is $200,000, what is its total debt?
A.
$300,000
B.
$400,000
C.
$500,000
D.
$600,000
Solution
Debt-to-equity ratio is calculated as total debt divided by total equity. If the ratio is 1.5 and equity is $200,000, then total debt = 1.5 * $200,000 = $300,000.
Q. A product has a selling price of $50, variable costs of $30, and fixed costs of $40,000. What is the margin of safety if the break-even sales are $100,000?
A.
$20,000
B.
$30,000
C.
$10,000
D.
$50,000
Solution
Margin of safety = Actual sales - Break-even sales = $120,000 - $100,000 = $20,000.
Q. A product has a selling price of $80 and a variable cost of $50. What is the margin of safety if the break-even sales are $200,000?
A.
$100,000
B.
$80,000
C.
$60,000
D.
$40,000
Solution
Margin of Safety = Actual Sales - Break-even Sales. Actual Sales = Selling Price * Number of Units Sold. If we assume 4,000 units sold, Actual Sales = $80 * 4,000 = $320,000. Margin of Safety = $320,000 - $200,000 = $120,000.
