11th Commerce Question Paper 2018: Questions & Answers

In this article, we have provided a comprehensive list of questions and answers from the 11th Commerce Question Paper 2018. This guide will help students understand the types of questions that were asked and give them a clear approach to studying for exams. Each subject is covered with multiple questions to ensure thorough preparation.

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11th Commerce Question Paper 2018

Question Paper Overview
The 11th Commerce Question Paper 2018 covered a variety of topics from different subjects, including Accountancy, Economics, Business Studies, and Mathematics. These questions are designed to test the understanding and application of concepts. Below are the questions and answers for each subject.

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Accountancy Questions and Answers

Question: What is the meaning of accounting?
Answer: Accounting is the process of recording, summarizing, and analyzing financial transactions of a business to provide information about its financial performance and position.

Question: Explain the term ‘ledger.’
Answer: A ledger is a book or a computer file that contains the accounts of a business. It records all financial transactions, classified into different accounts.

Question: What are the types of accounts in accounting?
Answer: The three types of accounts are personal accounts, real accounts, and nominal accounts. Each type of account serves a different purpose in the accounting process.

Question: What is the meaning of a trial balance?
Answer: A trial balance is a statement that lists the balances of all accounts in the general ledger at a specific point in time. It helps in checking the arithmetic accuracy of the accounts.

Question: Define ‘capital.’
Answer: Capital refers to the financial resources invested by the owner or shareholders in a business. It can be in the form of cash, assets, or investments.

Question: What is the importance of cash flow statement?
Answer: A cash flow statement is important as it shows the inflows and outflows of cash in a business, helping to assess its liquidity and solvency.

Question: What are the major objectives of financial accounting?
Answer: The major objectives are to record financial transactions accurately, prepare financial statements, and provide information for decision-making by users such as owners, creditors, and investors.

Question: Explain ‘depreciation’ in accounting.
Answer: Depreciation is the process of allocating the cost of a fixed asset over its useful life. It represents the reduction in the value of an asset due to wear and tear or obsolescence.

Question: What is ‘bank reconciliation’?
Answer: Bank reconciliation is the process of comparing the company’s cash records with the bank statement to ensure that both records match.

Question: What is the difference between ‘capital expenditure’ and ‘revenue expenditure’?
Answer: Capital expenditure is spent on acquiring or improving long-term assets, while revenue expenditure is spent on day-to-day operations and maintenance.

Question: What is ‘trial balance’ used for?
Answer: A trial balance is used to verify the accuracy of the accounting entries in the general ledger and to ensure that the accounting equation is in balance.

Question: What are the different types of journals in accounting?
Answer: The different types of journals are general journal, cash journal, sales journal, and purchases journal. Each journal records specific types of transactions.

Question: Explain ‘cash book.’
Answer: A cash book is a record of all cash receipts and payments, including bank transactions. It helps in tracking cash flow in a business.

Question: What is ‘profit and loss account’?
Answer: A profit and loss account is a financial statement that shows the company’s revenues, expenses, and profits or losses over a specific period.

Question: Define ‘balancing of accounts.’
Answer: Balancing of accounts refers to the process of calculating the difference between the debit and credit entries in an account and determining whether the account is in balance.

Question: What is the role of a chartered accountant?
Answer: A chartered accountant is responsible for auditing financial records, preparing financial statements, and providing financial advice to businesses and individuals.

Question: Explain ‘revenue recognition principle.’
Answer: The revenue recognition principle states that revenue should be recognized when it is earned, not when cash is received. This ensures that revenue is reported accurately in financial statements.

Question: What is the significance of ‘audit trail’ in accounting?
Answer: An audit trail is a chronological record of all financial transactions. It ensures transparency, accuracy, and accountability in the financial reporting process.

Question: What is meant by ‘debtors’ and ‘creditors’?
Answer: Debtors are individuals or entities that owe money to the business, while creditors are individuals or entities to whom the business owes money.

Question: Explain the term ‘accrual basis of accounting.’
Answer: The accrual basis of accounting records revenues and expenses when they are earned or incurred, regardless of when cash transactions occur.

Question: What are ‘provisions’ in accounting?
Answer: Provisions are amounts set aside from profits to cover potential future liabilities or expenses, such as bad debts or warranty claims.

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Economics Questions and Answers

Question: What is microeconomics?
Answer: Microeconomics is the branch of economics that deals with the behavior of individual consumers, firms, and industries in making decisions about the allocation of resources.

Question: What is the law of demand?
Answer: The law of demand states that as the price of a good or service decreases, the quantity demanded by consumers increases, and vice versa.

Question: Explain the concept of ‘opportunity cost.’
Answer: Opportunity cost is the cost of forgoing the next best alternative when a decision is made. It is the value of the best alternative that is not chosen.

Question: What is inflation?
Answer: Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.

Question: Define ‘GDP.’
Answer: GDP (Gross Domestic Product) is the total value of all goods and services produced within a country during a specific period, usually a year.

Question: What is the difference between ‘nominal GDP’ and ‘real GDP’?
Answer: Nominal GDP measures the value of goods and services at current prices, while real GDP adjusts for inflation, reflecting the true value of goods and services.

Question: What is the role of government in the economy?
Answer: The government plays a key role in regulating the economy, implementing fiscal and monetary policies, and ensuring economic stability and growth.

Question: Explain the term ‘market equilibrium.’
Answer: Market equilibrium occurs when the quantity demanded by consumers equals the quantity supplied by producers at a particular price.

Question: What are the factors affecting demand?
Answer: Factors affecting demand include the price of the good, consumer income, tastes and preferences, prices of related goods, and consumer expectations.

Question: What is a ‘monopoly’?
Answer: A monopoly is a market structure where a single producer or firm controls the entire supply of a particular product or service, eliminating competition.

Question: What is the difference between ‘short run’ and ‘long run’ in economics?
Answer: The short run refers to a period where at least one factor of production is fixed, while the long run refers to a period where all factors of production can be adjusted.

Question: What is the ‘law of supply’?
Answer: The law of supply states that as the price of a good or service increases, the quantity supplied by producers also increases, and vice versa.

Question: What is ‘elasticity of demand’?
Answer: Elasticity of demand refers to the responsiveness of the quantity demanded of a good to a change in its price.

Question: Define ‘perfect competition.’
Answer: Perfect competition is a market structure where there are many buyers and sellers, and no single firm can influence the market price.

Question: What are ‘externalities’?
Answer: Externalities are the unintended side effects of economic activities that affect third parties, such as pollution or public health risks.

Question: What is ‘fiscal policy’?
Answer: Fiscal policy refers to government actions regarding taxation and public spending to influence the economy, such as controlling inflation or promoting economic growth.

Question: What is ‘monetary policy’?
Answer: Monetary policy is the process by which a country’s central bank controls the supply of money and interest rates to achieve economic goals such as controlling inflation and stabilizing the currency.

Question: What is the difference between ‘microeconomics’ and ‘macroeconomics’?
Answer: Microeconomics studies individual economic units, while macroeconomics looks at the economy as a whole, focusing on aggregate indicators like GDP, inflation, and unemployment.

Question: Define ‘consumer equilibrium.’
Answer: Consumer equilibrium occurs when a consumer allocates their income in such a way that the marginal utility per unit of expenditure is equal across all goods and services.

Question: What are the types of inflation?
Answer: The types of inflation include demand-pull inflation, cost-push inflation, and built-in inflation, each caused by different factors in the economy.

Question: What is the significance of ‘money supply’ in the economy?
Answer: The money supply refers to the total amount of money available in an economy and influences inflation, interest rates, and overall economic activity.

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Business Studies Questions and Answers

Question: What is business?
Answer: Business refers to the activity of producing, buying, or selling goods and services with the aim of making a profit.

Question: Define ‘entrepreneur.’
Answer: An entrepreneur is an individual who starts and operates a business, taking on financial risks in the hope of making a profit.

Question: What is meant by ‘management’?
Answer: Management is the process of planning, organizing, leading, and controlling resources to achieve organizational goals effectively and efficiently.

Question: Explain the ‘functions of management.’
Answer: The main functions of management are planning, organizing, leading, and controlling. These functions help in achieving business objectives.

Question: What is a ‘partnership’?
Answer: A partnership is a business structure in which two or more individuals share ownership and management responsibilities.

Question: Define ‘corporation.’
Answer: A corporation is a legal entity separate from its owners, which has the ability to enter into contracts, own assets, and incur liabilities.

Question: What is ‘marketing’?
Answer: Marketing refers to the activities involved in promoting, selling, and distributing a product or service to the target audience.

Question: Explain ‘advertising.’
Answer: Advertising is a paid form of communication used to promote a product, service, or idea to a target audience through various media channels.

Question: What are ‘the 4 P’s of marketing’?
Answer: The 4 P’s of marketing are Product, Price, Place, and Promotion. These are the key elements used to create and execute a marketing strategy.

Question: What is ‘organizational structure’?
Answer: Organizational structure refers to how a company’s workforce is organized, including the hierarchy, roles, and responsibilities.

Question: Define ‘leadership.’
Answer: Leadership is the ability to influence, motivate, and guide others toward achieving common goals and objectives in a business or organization.

Question: What is ‘business ethics’?
Answer: Business ethics refers to the principles and standards that guide the behavior of individuals and organizations in the business world.

Question: What is ‘decision-making’?
Answer: Decision-making is the process of choosing the best course of action from available alternatives to achieve business goals.

Question: Define ‘financial planning.’
Answer: Financial planning is the process of managing a company’s financial resources to achieve its business objectives and ensure long-term success.

Question: What are the sources of business finance?
Answer: Sources of business finance include equity capital, debt capital, bank loans, venture capital, and retained earnings.

Question: What is ‘human resource management’?
Answer: Human resource management involves recruiting, training, and managing employees to maximize their potential and contribute to the success of the business.

Question: Explain ‘corporate social responsibility.’
Answer: Corporate social responsibility (CSR) refers to a business’s commitment to contribute positively to society and the environment while pursuing profit.

Question: What is ‘strategic management’?
Answer: Strategic management involves setting goals, analyzing the competitive environment, and making decisions to achieve long-term success in a business.

Question: What is a ‘SWOT analysis’?
Answer: SWOT analysis is a strategic planning tool used to identify a company’s Strengths, Weaknesses, Opportunities, and Threats.

Question: What is ‘delegation’ in management?
Answer: Delegation is the process of assigning responsibility and authority to others to perform specific tasks or make decisions.

Question: Define ‘business plan.’
Answer: A business plan is a written document outlining a company’s goals, strategies, and how it plans to achieve them.

Question: What is ‘innovation’?
Answer: Innovation refers to the process of creating new products, services, or methods that improve upon existing ones.

This guide provides an in-depth overview of the questions and answers for the 11th Commerce Question Paper 2018 across multiple subjects. By understanding these key concepts and practicing these questions, students can prepare effectively for their exams and gain a solid understanding of core topics.