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d) (iv) (iii) (ii) (i)

Abilling is assumed to be successful as long as itis fulfilling following criteria: 

Timely Billing: End customer's invoice is being generating on time i.e. nominal date. There may be some circumstances when end customer does not get their invoices on time because of some logistic issues. But it is IT's responsibility to generate all the due bills on due date.

Billing Accuracy: This is most important factor for the customer satisfaction and from regulatory obligation point of view. If billing system is not generating accurate bills then it canlead to serious business issue from legality point of view as well as leaving a customer inunhappy state.

(a) Interest on capital – Nil 

(b) Interest on drawing – Nil 

(c) Interest on loan – 6%P.a 

(d) Distribution of Profit or losses – Equally 

(e) Salary to partner – Nil

i) Banks offering wealth management services are exposed to reputational risks on account of miss-selling of products & conflict of interest.

ii) Lack of knowledge and clarity on products.

iii) Front line staff at banks may be more interested in pushing insurance and para banking products instead of promoting core banking products.

iv) Staffs may be untrained to the job and do not take responsibility of the outcome in any manner.

Correct option: a. Point of sale method

Entrepreneurial ability is a special kind of labour that organizes the process of production. 

(b) is an inverse relationship

“Book-building”

A process of inviting subscriptions to a public offer of securities, essentially through a tendering process.

c. Tertiary level- CHC

(c) break-even point

Advantages of life insurance: 

1. Risk cover 

2. Planning life stages needs 

3. Habit of saving 

4. Safety of Investment 

5.Liquidity 

6. Tax Benefit 

If total utility is maximum at a point, then marginal utility is zero.

The value of a commodity expressed in terms of money is known as Price.

Equilibrium is a condition that can change only if some internal factor changes.

The method of calculating the national income by the product method is otherwise known as Net output method.

Advantages of Life insurance: 

1. Risk Cover 

2. Planning Life Stage Needs 

3. Habit of Saving 

4. Safety of Investment

(a) Demand and Supply

According to the classical system, saving is a function of Income.

Both A and B are correct

A. Focusing human efforts for maintaining a healthy body and mind. 

B. Capable of better withstanding stressful situations. 

Security Issues in e-banking: 

1. fraudulent websites 

2. Fake emails 

3. phishing and pharming 

4. Cross-site scripting and key logger

(c) Monopoly

The Health Insurance or Medi Claim Policies, as it is also referred to, are those policies which cover hospitalization expenses for the treatment of illness/ injury as per the terms and conditions of the policy.

Features of Term loan: 

1. Security 

2. Obligation 

3. Interest

4. Restrictive Covenants

Government securities are considered liquid because they are quickly and easily marketable.

(c) Personal disposable income plus miscellaneous receipts of the Government

(b) Goods are sold secretly

(c) Price fixed by Government and Price in open market

(d) Inputs to output

(a) Power and transportation

Devaluation of money means decrease in the external value of money.

(d) Overhead cost

The two systems of book-keeping are: 

1. Single entry system of book-keeping. 

2. Double entry system of book-keeping.

c) Both assertion and reason are correct. 

(c) Normal profit

Capital a/c rule, under American system is: 

“Debit decrease in capital. 

Credit increase in capital”.

The demand for Salt of commodity will not rise in spite of a fall in its price.

The differences between cash and pass book casuse are: 

1. Cheque deposited into bank but not realised 

2. Cheque issued to parties but not presented 

3. Any expenses directly debited by bank book and not in the cash book. 

4. Any income directly received by bank and not recorded by business.

Examples for omission are: 

1. Purchase goods from Murthy not recorded in purchase book. It is a omission of original entry. 

2. Sold goods to Mary recorded in sales book but not posted to ledger. It is a omission of postings.

For knowing the exact financial position and financial result of the concern, final accounts to be prepared.

Voucher entry is a proof of transaction which is also copy of transaction.

The following are the difficulties that are encountered by a trader due to incompleteness of accounting records:

a. Accuracy of accounts: Arithmetical accuracy of accounts cannot be ascertained, since proper records of accounts are not maintained. Consequently, Trial Balance cannot be prepared.

b. Encourages fraud: As the arithmetical accuracy cannot be determined; so, this encourages fraud and provides sufficient scope for bluffing and carelessness.

c. Difficult to ascertain correct profit or loss: Since all expenses and income are not recorded, true profit or loss cannot be correctly ascertained. 

d. Difficult to analyse the true financial position: As profit or loss cannot be ascertained easily, so the balance sheet cannot be easily prepared. Hence, the absence of balance sheet will not reflect the true financial position of the business.

e. Difficulty in comparison: Due to the incomplete records and non-availability of previous years data, comparison is not possible. By the same token, comparisons with other firms are also not possible.

f. Unacceptable to tax authorities: It does not reflect the true and acceptable presentation of expenses and revenues. Hence, these are not acceptable by the tax authorities.

g. Raising funds: Since analysis of solvency, profitability and liquidity of business cannot be done, it is difficult to raise fund from outside.

process of drawing and accepting a new bill by cancelling the old bill is called renewal of a bill. It is a granting of extension of credit to the acceptor. When this is done the acceptor may have to pay interest for the extended period of credit. It is paid in cash or may be included in the amount of the new bill.

The acceptor can pay the amount of the bill before its due date. The process of paying the amount of the bills payable before the due date is called retiring the bill. In such case, the holder usually allows some discount to the acceptor of bill. Such a discount is called “rebate on retired bill”. The amount of rebate depends on the period that the bill has yet to run.

The accrual method records income items when they are earned and records deductions when expenses are incurred. Accrual basis of accounting matches revenue to the time period in which they are earned and matches expenses to the time period in which they are incurred.

While it is more complex than cash basis accounting, it provides much more information about the business. The accrual basis allows matching revenue to the expenses incurred in earning them giving more meaningful financial report.

Accounting provides information regarding the financial status of a business and results of its operations. The following are the important functions of accountant of a firm.

1. Recording transactions by referring source documents.

2. Preparing journal, subdivision of journal.

3. Preparing ledger accounts.

4. Summarising.

5. Making statements of interpretation 0 Reporting to Management.

When a bill of exchange is dishonoured due to nonpayment, it is usual to get it ‘noted’, to establish the matter of dishonour legally. The noting is done by the “Notary public”, who is an officer appointed by  the Government for this purpose. Noting authenticates the facts of dishonour.

For providing this service, a number of fees is charged which is called “Noting charges” Noting charges either paid by the holder or any other parties should be borne by the acceptor in the absence of any agreement.

The important uses/merits of incomplete records are:

1. It is a simple and easy method of book – keeping. 

2. It is less costly, because only few books of accounts are maintained. 

3. Only personal and cash accounts are main trained. 

4. It is suitable for small business concern. 

5. Accounting knowledge is not much required