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 business forecasts a growth rate of 10% per year. If its current revenue is $500,000, what will its revenue be in 2 years?
A.
$550,000
B.
$605,000
C.
$610,000
D.
$620,000
Solution
Future revenue can be calculated using the formula: future value = present value * (1 + growth rate)^number of years. Thus, $500,000 * (1 + 0.10)^2 = $500,000 * 1.21 = $605,000.
Q. A business has a current ratio of 2:1. If its current liabilities are $50,000, what are its current assets?
A.
$100,000
B.
$150,000
C.
$200,000
D.
$250,000
Solution
Current ratio is calculated as current assets divided by current liabilities. If the current ratio is 2:1 and current liabilities are $50,000, then current assets = 2 * $50,000 = $100,000.
Q. A business has fixed costs of $20,000 and variable costs of $5 per unit. If the selling price is $15 per unit, how many units must be sold to break even?
Q. A company budgeted for 5,000 hours of labor at a rate of $20 per hour. If the actual labor cost was $110,000 for 6,000 hours, what is the labor efficiency variance?
Q. A company has 100 units of inventory purchased at $5 each and 50 units purchased at $8 each. If it sells 80 units using FIFO, what is the ending inventory value?
A.
$200
B.
$240
C.
$280
D.
$400
Solution
Under FIFO, the first 80 units sold are from the $5 batch (100 units), leaving 20 units at $5 and 50 units at $8. Ending inventory = (20 * $5) + (50 * $8) = $100 + $400 = $500.
Q. A company has 150 units at $30 and 100 units at $35. If it sells 120 units using FIFO, what is the ending inventory value?
A.
$1,050
B.
$1,200
C.
$1,500
D.
$1,800
Solution
Under FIFO, the first 120 units sold are from the $30 batch (150 units), leaving 30 units at $30 and 100 units at $35. Ending inventory = (30 * $30) + (100 * $35) = $900 + $3,500 = $4,400.
Q. A company has 200 units of inventory at $10 each and 300 units at $15 each. If it sells 250 units using LIFO, what is the ending inventory value?
A.
$1,000
B.
$1,250
C.
$1,500
D.
$1,750
Solution
Under LIFO, the last 250 units sold are from the $15 batch (300 units), leaving 50 units at $15 and 200 units at $10. Ending inventory = (50 * $15) + (200 * $10) = $750 + $2,000 = $2,750.
Q. A company has a budgeted variable cost of $3 per unit for 10,000 units. If the actual variable cost is $4 per unit for 12,000 units, what is the total variable cost variance?
