InterviewSolution
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(a) What are convenience products? Give two examples. (b) What is understood by the Going Concern Concept of Accounting?(e) Mention any four causes of the Greenhouse Effect. (d) What are the advantages of‘Account Payee’ crossing of a cheque? (e) What is a ‘Recurring Deposit Account’? |
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Answer» (a) Convenience Products: The products which customer purchases for personal convenience and are purchased frequently, immediately and with minimum efforts, are known as convenience products. For example, news-paper, cigarettes etc. (b) In going concern concept of accounting, it is assumed that the business will continue to exist for a long time in the future. A firm is said to be a going concern when there is neither the intention nor the necessity to wind up its affairs. This concept also implies that the existing liabilities will be paid at maturity. Unsold stock of goods are taken to the next year. (c) Four causes of greenhouse effect are: Carbon dioxide, Water vapour, Methane and Ozone. (d) Advantage of ‘Account Payee’crossing of a cheque is: 1. To prevent fraudulent encashment. 2. Crossing provides a protection or safeguard against loss to the securing payment through a bank. (e) Recurring Deposit Account: In this account, the account holder is required to deposit a specific amount every month for a specified period of time. After the expiry of the specified period, the depositer gets back his total deposit amount with interest thereon. A pass book is issued to the depositer but no cheque book is issued. |
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