M Com Question Papers with Answers PDF

M Com question papers with answers PDF provide valuable resources for students pursuing a Master’s in Commerce. These questions and answers help in understanding key topics, preparing for exams, and achieving academic success. Covering all subjects, they serve as a comprehensive guide to mastering the concepts and topics of M Com.

Accounting and Financial Management

Question What is the definition of financial accounting?
Answer Financial accounting is the process of recording, summarizing, and reporting financial transactions of an organization to external users.

Question What is the difference between fixed assets and current assets?
Answer Fixed assets are long-term tangible items like buildings, while current assets are short-term items like cash.

Question Explain the term “depreciation.”
Answer Depreciation is the reduction in the value of an asset over time due to wear and tear or obsolescence.

Question What is the accounting equation?
Answer The accounting equation is: Assets = Liabilities + Equity.

Question What is the purpose of a balance sheet?
Answer The balance sheet shows a company’s financial position at a specific point in time.

Question Explain working capital management.
Answer Working capital management involves managing short-term assets and liabilities to ensure operational efficiency.

Question What is the accrual basis of accounting?
Answer Accrual accounting records revenues and expenses when they are earned or incurred, regardless of cash flow.

Question What is a trial balance?
Answer A trial balance is a statement summarizing all ledger balances to check mathematical accuracy.

Question Explain the concept of double-entry bookkeeping.
Answer Double-entry bookkeeping involves recording each transaction in two accounts: debit and credit.

 

Question What is a contingent liability?
Answer A contingent liability is a potential obligation that may arise depending on the outcome of a future event.

Question What are accounting standards?
Answer Accounting standards are guidelines for financial reporting to ensure consistency and transparency.

Question What is goodwill in accounting?
Answer Goodwill is an intangible asset representing the value of a business’s reputation and customer relationships.

Question Explain the term “amortization.”
Answer Amortization is the process of spreading the cost of an intangible asset over its useful life.

Question What is meant by liquidity in finance?
Answer Liquidity refers to the ease with which an asset can be converted into cash without loss of value.

Question What is a cash flow statement?
Answer A cash flow statement summarizes the inflows and outflows of cash in an organization during a period.

Question What is the difference between revenue and profit?
Answer Revenue is the total income generated, while profit is the income remaining after expenses are deducted.

Question What are the types of financial statements?
Answer The main types are the balance sheet, income statement, and cash flow statement.

Question What is variance analysis?
Answer Variance analysis evaluates the difference between planned and actual financial performance.

Question Define the term “ledger.”
Answer A ledger is a book or computer file used to record and summarize transactions.

Corporate Laws and Governance

Question What is corporate governance?
Answer Corporate governance is the system by which companies are directed and controlled to ensure accountability and transparency.

Question What is the purpose of the Companies Act?
Answer The Companies Act regulates the incorporation, management, and dissolution of companies.

Question What is a director’s role in a company?
Answer Directors are responsible for managing the company and ensuring it complies with laws and regulations.

Question What is the Memorandum of Association?
Answer The Memorandum of Association is a document outlining a company’s objectives and scope.

Question What is insider trading?
Answer Insider trading involves buying or selling a company’s securities based on confidential information.

Question What are shareholders’ rights?
Answer Shareholders have rights such as voting, receiving dividends, and inspecting company records.

Question Explain the term “corporate social responsibility.”
Answer Corporate social responsibility involves businesses contributing positively to society and the environment.

Question What is a Board of Directors?
Answer The Board of Directors is a group of individuals elected to oversee the activities of a company.

Question What is a quorum in corporate meetings?
Answer A quorum is the minimum number of members required to hold a valid meeting.

Question Define the term “proxy” in company law.
Answer A proxy is a person authorized to act on behalf of a shareholder at a meeting.

Question What is the purpose of an annual general meeting (AGM)?
Answer An AGM allows shareholders to discuss company performance and make decisions.

Question What is the concept of limited liability?
Answer Limited liability means shareholders are only responsible for the company’s debts to the extent of their investment.

Question What is a resolution in a corporate meeting?
Answer A resolution is a formal decision passed by a company’s board or shareholders.

 

Question Explain the term “winding up.”
Answer Winding up refers to the process of dissolving a company and distributing its assets.

Question What is a special resolution?
Answer A special resolution is a decision requiring a higher majority than an ordinary resolution.

Question What is the difference between equity shares and preference shares?
Answer Equity shares represent ownership, while preference shares give fixed dividends without ownership rights.

Question What is corporate fraud?
Answer Corporate fraud involves illegal activities committed by a company or its employees for financial gain.

Question What is an audit committee?
Answer An audit committee oversees the company’s financial reporting and audit process.

Question What are the duties of a company secretary?
Answer A company secretary ensures compliance with corporate laws and manages board meetings.

Economics for Business Decisions

Question What is the law of demand?
Answer The law of demand states that the quantity demanded decreases as price increases, and vice versa.

Question What is elasticity of demand?
Answer Elasticity of demand measures how demand responds to price changes.

Question What is the meaning of opportunity cost?
Answer Opportunity cost is the value of the next best alternative foregone.

Question Define macroeconomics.
Answer Macroeconomics studies the economy as a whole, focusing on aggregate indicators like GDP.

Question What is the difference between monopolistic and perfect competition?
Answer Monopolistic competition has many sellers with differentiated products, while perfect competition has identical products.

Question What is Gross Domestic Product (GDP)?
Answer GDP is the total value of goods and services produced in a country during a period.

Question What is fiscal policy?
Answer Fiscal policy involves government spending and taxation to influence the economy.

Question What is monetary policy?
Answer Monetary policy is the process of controlling money supply and interest rates by the central bank.

Question What is the difference between microeconomics and macroeconomics?
Answer Microeconomics studies individual economic units, while macroeconomics looks at the overall economy.

Question What are economies of scale?
Answer Economies of scale refer to cost advantages gained as production increases.

Question What is inflation?
Answer Inflation is the sustained rise in the general price level of goods and services.

Question What is the meaning of supply?
Answer Supply refers to the quantity of a good or service available for sale at various prices.

Question What is the Phillips Curve?
Answer The Phillips Curve shows the inverse relationship between unemployment and inflation.

Question What is meant by aggregate demand?
Answer Aggregate demand is the total demand for goods and services in an economy.

Question What are the types of market structures?
Answer The main types are perfect competition, monopoly, monopolistic competition, and oligopoly.

Question What is the concept of consumer surplus?
Answer Consumer surplus is the difference between what consumers are willing to pay and what they actually pay.

Question What is the role of the World Trade Organization (WTO)?
Answer The WTO facilitates international trade by ensuring fair trade practices.

Question What is the meaning of economic recession?
Answer A recession is a period of negative economic growth lasting at least two consecutive quarters.

Question What is the importance of cost-benefit analysis?
Answer Cost-benefit analysis helps in evaluating the advantages and disadvantages of a decision.

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M Com question papers with answers PDFs provide an extensive resource for students aiming for academic success. Covering topics like accounting, law, and economics, these questions ensure thorough preparation. By practicing these, students can grasp complex concepts, improve problem-solving skills, and excel in their examinations confidently.