Commercial Studies Multiple Choice Questions

Which of the following is an example of Off-the-Job Training?

• Job rotation

• Mentoring

• Apprenticeship

• Classroom training

Rishav prepared a detailed plan of operations for a specific future period. Identify the process.

• Forecasting

• Marketing

• Budgeting

• Selecting

Sharma and Company is planning to spend ₹5,00,000 on advertising. Under which type of expense can it be classified?

• Capital expenditure

• Revenue expenditure

• Capital receipts

• Deferred Revenue expenditure

Assertion (A): Preference shares are a hybrid form of financing. Reason (R): Preference shares have characteristics of both equity shares and debentures.

• Both (A) and (R) are true and (R) is the correct explanation of (A)

• Both (A) and (R) are true but (R) is not the correct explanation of (A)

• (A) is true and (R) is false

• Both (A) and (R) are false

Which of the following is Not true with reference to the Reserve Bank of India?

• It is the sole custodian of foreign exchange reserves.

• It extends loans to the general public.

• It makes and receives payment on behalf of the government.

• It has the monopoly of issuing currency notes.

Which type of selection test helps to measure an applicant’s level of knowledge and skill in a particular occupation?

• Aptitude test

• Interest test

• Trade test

• Dexterity test

Which of the following are true for a Trading Account?

• I and II are true

• II and III are true

• III and IV are true

• II and IV are true

Marketing aims to build the reputation of the enterprise over time.

• True

• False

Expenses incurred by the firm to purchase a second-hand machine and make it ready for use are treated as:

• Capital Expenditure

• Revenue Expenditure

• Capital Receipts

• Revenue Receipts

Expenses incurred for construction of a building are classified as:

• Revenue Expenditure

• Capital Expenditure

• Deferred Revenue Expenditure

• Miscellaneous Expenditure