Explore topic-wise InterviewSolutions in Current Affairs.

In case of Balanced Balance sheet, the total of Liability should be Equal to Asset side.

(A) Asset side of Balance sheet 

(c) Compound entry

(d) Ledger folio

(a) Trial balance

Answer: (C) Rs. 20,300

(b) Luca Pacioli

1. In every business transaction, there are two aspects. 

2. The two aspects involved are the benefit or value receiving aspect and benefit or value giving aspect. 

3. These two aspects involve minimum two accounts; atleast one debit and atleast one credit. 

4. For every debit, there is a corresponding and equivalent credit. If one account is debited . the other account must be credited.

Correct option: (a) Retention of decision making authority

(c) Unsubscribed capital

Correct option: (a) Forward looking

The main arguments in favor of evolutionism are: paleontological, from the study of similarities among fossils of different periods; of compared anatomy, the existence of structures with same origin and function and of residual organs, like the human appendix, that reveal relationships among species; of compared embryology, similarities of structures and developmental processes among embryos of related species; of molecular biology, larger percentage of similar nucleotide sequences in the DNA of species having common ancestors.

The study of fossils reveals ancient and extinct species having many similar structures to others of the present and of the past. Fossils still allow radioactive dating to estimate the periods during which species lived and to establish a chronological relationship between them. Those evidences strengthen the hypothesis of relationship and common origin among species and that their features have modified gradually until the formation of the current species.

Fixism is the theory about the diversity of life on earth that affirms that the current existent species were identical to species of the past and came out already adapted to the environment without undergoing changes.

Fixism opposes evolutionism since evolutionism is the idea that current species emerged from gradual transformations suffered by ancestral and extinct species. 

The religious version of fixism is called creationism. Many different forms of creationism are found in the mythology of various religions. Modernized religious interpreters teach creationism as metaphorical wisdom and not as opposed to evolutionism.

Furthermore, it is possible to make evolution compatible with creationism by considering that God in His perfection would not create a world so full of imperfections and sufferings like our world. One can maintain the creationist belief thinking that the world God created is another much better world or at least not the one that we see while admitting the imperfection of life that we see has emerged by evolution.

The main theory that opposes the evolution theory on the explanation of how species emerged (phylogenesis) is fixism.

Mukhtar Ahmed Ansari argued against Jinnah's two-nation theory.

The company should offer Initial Public Offer (IPO). 

(a) Retained Earnings: A company generally does not distribute all its earnings amongst the shareholders as dividends but a portion of the net earnings may be retained in the business for use in the future this is known as retained earnings. It is a source of internal financing or self financing or ‘ploughing back of profits’. The profit available for ploughing back in an organisation depends on many factors like net profits, dividend policy and age of the organisation. 

(b) Trade Credit: It is the credit extended by one trader to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organisations as a source of short term financing. It is granted to those customers who have reasonable amount of financial standing and goodwill.

The volume and period of credit extended depends on factors such as reputation of the purchasing firm, financial position of the seller, volume of purchases, past record of payment and degree of competition in the market. Terms of trade credit may vary from one industry to another and from one person to another. A firm may also offer different credit terms to different customers.

An activity of business concerned with the acquisition and conservation of capital fund in meeting the financial needs and overall objective of the business.

1. To purchase fixed assets: Every type of business needs some fixed assets like land and building, furniture, machinery, etc. A large amount of money is required for purchase of these assets. 

2. To meet day-to-day expenses: After establishment of a business, funds are needed to carry out day-to-day operations.

3. To fund business growth: Growth of business may include expansion of existing line of business as well as adding new lines. To finance such growth, one needs more funds. 

4. To bridge the time gap between production and sales: The amount spent on production is realized only when sales are made. Normally, there is a time gap between production and sales and also between sales and realization of cash. Hence during this interval, expenses continue to be incurred, for which funds are required. 

5. To meet contingencies: Funds are always required to meet the ups and downs of business and for some unforeseen problems.

1. To purchase fixed assets: Every type of business needs some fixed assets like land and building, furniture, machinery, etc. A large amount of money is required for purchase of these assets. 

2. To meet day-to-day expenses: After establishment of a business, funds are needed to carry out day-to-day operations. 

3. To fund business growth: Growth of business may include expansion of existing line of business as well as adding new lines. To finance such growth, one needs more funds. 

4. To bridge the time gap between production and sales: The amount spent on production is realized only when sales are made. Normally, there is a time gap between production and sales and also between sales and realization of cash. Hence during this interval, expenses continue to be incurred, for which funds are required.

5. To meet contingencies: Funds are always required to meet the ups and downs of business and for some unforeseen problems.

• To purchase fixed assets: Every type of business needs some fixed assets like land and building, furniture, machinery, etc. A large amount of money is required for purchase of these assets. 
• To meet day-to-day expenses: After establishment of a business, funds are needed to carry out day-to-day operations. 
• To fund business growth: Growth of business may include expansion of existing line of business as well as adding new lines. To finance such growth, one needs more funds. 
• To bridge the time gap between production and sales: The amount spent on production is realised only when sales are made. Normally, there is a time gap between production and sales and also between sales and realisation of cash. Hence during this interval, expenses continue to be incurred, for which funds are required. 
• To meet contingencies: Funds are always required to meet the ups and downs of business and for some unforeseen problems.

Departmental undertakings have certain advantages which are as follows:

1. These undertakings facilitate the Parliament to exercise effective control over their operations. 

2. These ensure a high degree of public accountability.

The limitations of departmental undertaking are:

1. Departmental undertakings fail to provide flexibility, which is essential for the smooth operation of business. 

2. The employees or heads of departments of such undertakings are not allowed to take independent decisions, without the approval of the ministry concerned. This leads to delays, in matters where prompt decisions are required.

The various types of industries are:

1. Primary industries: Primary industries refer to industries which are concerned with the production of goods mainly with the help of nature. Mining, agriculture, forestry, fishing, etc. are example for primary industries. Primary industries can be classified as:

(a) Genetic industries: Genetic industries refer to those activities which are undertaken for reproducing or multiplying plants and animals with the object of making profit from their sales. Example: Nurseries raising seedlings and plants, cattle breeding, poultry farming, etc.

(b) Extractive industries: Extractive industries refer to those activities which are concerned with the extraction or production of wealth from soil, air, water or from beneath the surface of the earth. Example: Agriculture, mining, fishing, forestry, hunting, fruit gathering, etc.

2. Secondary industries: Secondary industries refer to industries where human labour plays a more important role than nature. Secondary industries can be classified into:

(a) Manufacturing industries: Manufacturing industries refer to activities concerned with the conversion of raw materials or semifinished goods into finished goods.

Example: Conversion of raw cotton into cotton textiles; conversion of raw jute into jute products; production of sugar from sugarcane,etc. Manufacturing industries may be sub-divided into four types. They are:

(i) Analytical industries: Analytical industries refer to those manufacturing industries which produce many types of product by analysing, i.e. separating, the same basic raw materials into different products. Example: In oil refining, the same crude oil is analysed or separated into different products like petrol, diesel oil, kerosene, lubricating oil, etc. 

(ii) Synthetic industries: Synthetic industries refer to all those manufacturing industries where various materials are combined together in the manufacturing process to manufacture a new product. Example: Cement industry is a synthetic industry, in the sense that cement is produced by combining many materials, such as gypsum, coal, etc.

(iii) Processing industries: Processing industries refer to those manufacturing industries where different component processed through Trent processes into finished product. Paper industry, textile industry, etc. are the example processing industries. 

(iv) Assembling industries: Assembling industries refer to those manufacturing industries where different component parts already manufactured are assembled into final products. Automobile industry is an example for assembling industries.

(b) Construction industries: Construction industries refer to those activities which are concerned with the creation of infrastructure necessary for economic development. In other words, they refer to those which are concerned with the construction of buildings, roads, bridges, railway lines, dams canals, etc.

Tertiary industries: Tertiary industries refer to industries which provide support services to primary and secondary industries and also to activities relating to trade. These days, services also are regarded as industries, and are called tertiary industries. These industries are regarded as part of commerce, i.e. as auxiliaries to trade.

The five e-banking services are: 

1. Electronic fund transfer. 

2. Automated teller machines. 

3. Electronic data Interchange.

4. Credit cards electronic or digital cash. 

5. Tele banking / Mobile banking. 

6. Any where banking (or) core banking.

Departmental undertakings have certain advantages which are as follows:

1. These undertakings facilitate the Parliament to exercise effective control over their operations. 

2. These ensure a high degree of public accountability. 

3. The revenue earned by the enterprise goes directly to the treasury and hence is a source of income for the government. 

4. Where national security is concerned, this form is most suitable since it is under the direct control and supervision of the concerned Ministry.

Correct option: c) Yearly

Phishing is one of the most commonly used forms of cyber-attack.

Correct option: b) Bank for International Settlement (BIS)

ECS Credit is not a paper based ways of transferring money.

Correct option: b) SBI Bank

CORE stands for Centralised On-line Real Time Environment environment.

Anywhere, Anytime

CBS helps in customer convenience through Anywhere, and Anytime.

Correct option: (a) Both assertion and reason are correct

(c) Expert knowledge is not required in analysing the financial statements 

(a) 1 – i, 2 – ii, 3 – iii, 4 – iv

(c) Share capital A/c

A jont stock company is An artificial legal person

Shares can be for forfeited For non payment of call money

Numbering System of ISIN: 

The numbering structure for securities in NSDL is of 12 digit alpha numeric string. The first two characters represent country code i.e. IN (in accordance with ISO 3166). 

The third character represents the Issuer Type. 

The list may be expanded as per need. Maximum issuer types can be 35 (A to Z and 0 to 8. The partly paid up shares are identified by 9). 

The next 4 characters (fourth to seventh character) represent company identity of which first 3 characters are numeric and fourth character is alpha character.

The next two characters (the eight and ninth characters) represent security type for a given issuer. Both the characters are numeric. 

The next two characters (the tenth and eleventh characters) are serially issued for each security of the issuer entering the system. Last digit is check digit. 

• Index derivatives are derivative contracts which have the index as the underlying. 
• The most popular index derivative contracts the world over are index futures and index options.
• Index derivatives offer ease of use for hedging any portfolio irrespective of its composition.
• Stock index, being an average, is much less volatile than individual stock prices. This implies much lower capital adequacy and margin requirements.

Secured loans are the borrowings against the security i.e. against mortgaging some immovable property or hypothecating/pledging some movable property of the company.

Unsecured loans are other short term borrowings without a specific security. They are fixed deposits, loans and advances from promoters, inter-corporate borrowings, and unsecured loans from the banks.

A personal loan to purchase an automobile is known as Auto Loan. Car loan is a secured type of loan as the car is used as collateral. Car finance arose because the price of cars was out of the reach of individual purchasers without borrowing the money.

•  High interest cost
•  Inflated pricing for all consumers 
•  Weakens self-regulation

(d)  Fictitious Asset

(c)  Long-term debt of the business

Equity shareholder are owner of the company.