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MP Board Class 12th Accountancy Important Questions Chapter 11 Cash Flow Statement

Cash Flow Statement Important Questions

Cash Flow Statement Objective Type Questions

Question 1.
Choose the correct answer:

Question 1.
Cash flow analysis means:
(a) To disclose the changes in the amount of cash in an organization
(b) To find out embezzlement of cash
(c) To trade in cash
(d) None of these.
Answer:
(a) To disclose the changes in the amount of cash in an organization

Question 2.
Cash received from operating activities refers to:
(a) Cash flow during a specific period
(b) Cash resulting out of business activities during a specific period
(c) Deposit of cash in the bank
(d) None of these.
Answer:
(b) Cash resulting out of business activities during a specific period

Question 3.
In flow of cash in cash flow statement means:
(a) Transactions that result in the increase of sources of cash and cash balance
(b) Transactions that result in the decrease of sources of cash inflow
(c) Transactions which have no effect on the sources of cash inflow
(d) Transactions that results in increase of fixed assets.
Answer:
(a) Transactions that result in the increase of sources of cash and cash balance

Question 4.
In how many ways is the cash flow statement prepared:
(a) One
(b) Two
(c) Four
(d) None of these.
Answer:
(b) Two

Question 5.
It is compulsory to prepare and present cash flow statement for:
(a) Pvt. company
(b) All listed company
(c) Public Ltd company
(d) Foreign company.
Answer:
(b) All listed company

Question 6.
Cash flow statement is prepared by:
(a) All company
(b) Every commercial organization
(c) Every partnership firm
(d) Every co-operative organization.
Answer:
(a) All company

Question 2.
Fill in the blanks:

1. The statement which is prepared to know the difference between current assets and current liabilities is known as …………….
2. The statement in which changes in inflow (receipts) and outflow (payments) of cash are known is called …………….
3. The situation in which there is decrease in cash balance of business is called …………….
4. In the condition of ……………. the balance of cash increases in business.
5. Cash flow statement is prepared in ……………. steps.
6. If the net profit earned during the year is Rs. 50,000. The initial and final account holders of Debtors are Rs. 10,000 and Rs. 20,000 respectively. Then the cash flow will be equal to ……………. from operarting activities.
7. At the end of the year prepaid expenses ares ……………. from the earned profit for the
   year.
8. The accured income of a year is ……………. from the net profit.
9. For the calculation of cash flow from operating activities, writing off the goodwill is ……………. during the year.
10. For the calculation of cash flow from operating activities, the provision for bad debts are ……………. to the earned profit the year.
11. Creditors are the ……………. of a company.
12. Realization of loan is included in ……………. activities.
13. Cash flow statement depict the ……………. changes between cash & cash equivalents.
14. Redemption of preference share is known as ……………. activities.
15. In a commercial organization, the operating activities are its ……………. activities.

Answer:

1. Fund flow situation
2. Cash flow statement
3. Out flow of cash
4. Inflow of cash
5. Three
6. Rs. 40,000
7. Deducted
8. Added
9. Added
10. Added
11. Liabilities
12. Financial
13. Historical
14. Financial
15. Main / Chief.

Question 3.
Match the columns:

Answer:

1. (b) In flow of cash
2. (a) Outflow of cash
3. (d) Fund flow statement
4. (c) Cash flow analysis
5. (e) Exclude non operating items

Question 4.
Write true or false:

1. Profit earned during the accounting year is called net profit.
2. Cash flow analysis does not provide information regarding the direction and condition of changes in cash.
3. The position of working capital of business can be known through cash flow statement.
4. Cash received from operating activities is the result of cash generated through business activities.
5. In single column cash flow statement, inflow of cash is added.

Answer:

1. True
2. False
3. False
4. True
5. True.

Question 5.
Write the answer in one word / sentence:

1. A statement which shows the financial condition through inflow and outflow of funds.
2. Statement showing changes in cash positions.
3. Cash resulting out of business activities is called as
4. Issue of shares and debentures in consideration other than cash and assets shown in the cash flow statement against issue of shares and debentures are called
5. Which statement is related to each item of working capital.

Answer:

1. Fund flow statement
2. Cash flow statement
3. Cash from operation
4. Non current assets
5. Fund flow statement.

Cash Flow Statement Very Short Answer Type Questions

Question 1.
What do you mean by cash flow statement ?
Answer:
Cash flow statement means statement of change in cash position of the enterprise. It analyses the causes of changes in cash position between the two financial statements. It is a statement which shows inflows and outflows of cash and cash equivalents in an enterprise during a specified period of time. This statement is the summary of sources of cash and application of cash in various fields.

Question 2.
What is the meaning of flow in cash flow statement ?
Answer:
In the cash flow statement, there is a combination of two words ‘Cash’ and ‘Flow’. The meaning of the word ‘Cash’ is cash balance and bank balance. The word ‘Flow’ refers to the change or movement. In this way ‘cash flow statement’ (CFS) means the changes occurred during any period in the cash position business or institution which exhibits the cause and amount of changes and direction.

In this statement he sources of cash, uses of cash and net cash position is included, which is the difference of total sources and uses. This statement is also known by the name statement of sources and uses of cash of statement of sources and application of cash.

Flow of cash:
Cash Flow is created when the net effect of any transaction either bring increase or decrease in the cash amount. That transaction which apart from cash account, affects other current accounts or non-current accounts or both, it creates change in cash position.

Through those transactions by which there is an increase in the cash balances of the business or inflow of cash or by those transactions, there from comes decrease in cash balance of business, they are presumed to be the uses of cash or outflow of cash. In other words, the receipt of cash can be called flow of cash and payment can be called as the use of cash.

Question 3.
Write the major source of cash.
Answer:
The major source of cash are as under:

• Issue of equity and preference shares for cash
• Raising of long term debts – issue of debentures for cash, accepting deposits from public
• Sale of fixed assets in cash
• Non-operating incomes-Dividends and interest on investment
• Cash from operating activities of the business.

Question 4.
Write any four utilities of cash flow statement.
Answer:
Utilities of cash flow statement are as follows:

• Evaluation of cash position
• Enable management in planning and control.
• Disclose failure or success of management by performance evaluation
• Helps in framing long term planning
• Helps in determining cash flows from different activities separately.
• Evaluation of liquidity position of the firm.

Question 5.
What is meant by ‘Cash flow from operating activities’ ?
Answer:
As per AS – 3, operating activities are the principal revenue producing activities of the enterprise, e.g., for a company dealing in manufacturing of garments, purchase of raw materials, payment of manufacturing expenses, sale of garments etc. are the principal revenue producing activities. Cash inflows and outflows from these activities will affect the calculation of profits or loss of the business.

Question 6.
Mention the four objects / importance of cash flow statement.
Or
What are the uses of cash flow statement ?
Answer:
The followings are the objectives of cash flow statement:

• This is useful in the evaluation of cash of the institution. By this, through budget, the need of the cash of the institution can be estimated,
• The use of cash can be controlled according to plan
• This analysis is also helpful in the evaluation of financial policies.
• By cash flow analysis, the knowledge of redemption capacity of the institution is also possible.

Question 7.
Differentiate between net profit and cash received from operation
Answer:
The differences between net profit and cash from operation:

Question 8.
Write the limitations of cash flow statement.
Answer:
The limitations of cash flow statement are as follows:
1. Non – cash transactions are ignored:
Cash flow statement shows only inflows and outflows of cash and cash equivalent. It ignores non-cash transactions like conversion of shares into debentures, purchase of building by issue of shares.

2. Lack of Accuracy:
Cash flow statement is prepared on the basis of financial statement. So if financial statement is incorrect, the cash flow statement may be incorrect.

3. Long-term analysis not possible:
Through cash flow statement long-term analysis is not possible. It ascertain only the short-term financial position of the business.

Question 9.
When does investment is equivalent to cash ?
Answer:
There are two stages are as follows:

• When invest is for short-period of time like 3 months or less than 3 months
• When invest can converted into cash without any risk
• When goods purchased for issuing shares.

Question 10.
Explain operating activities.
Answer:
Operating activities are the main revenue producing activities of the enterprise. This activities comprises of all those transaction and events which determine net profit or loss of the business. Example of cash receipt from operating activities are cash received on sale of goods and rendering of services, cash receipt from royalties, fees, commission etc., cash receipt from sale of securities.

Question 11.
Explain any four objectives of cash flow statements.
Answer:
Objectives of cash flow statements are:
1. Analysis of cash position:
Cash flow statement explains the reason for lower or higher cash balance with the firm. Sometimes a firm may have lower cash balance in spite of higher profits or a higher cash balance in spite of lower net profits. Cash flow statement does help in explaining the causes of such quotation.

2. Short term cash planning and management:
Cash flow statement is very useful for short term financial planning and management. This statement reveals the position of surplus or deficiency of cash so that the management may be able to make plan for proper investment of surplus cash or to tap the sources where from the deficiency is to be met with.

3. Evaluation of liquidity:
Liquidity means ability to meet current obligations at due time i.e., payment to creditors, repayment of bank loan etc. Cash flow statement disclose the position of liquidity in a better way and that is why banks and other financial institutions use cash flow statements for the evaluation of liquidity of any firm.

4. Comparison of operating performance:
Cash flow statement enhances the comparability of the reporting of operating performance by different enterprises because it eliminates the effects of using different accounting treatment of the same transactions and events.

Question 12.
Give any two methods of financial statement analysis.
Answer:
The two methods of financial statement analysis are as follows :

1. Comparative statement
2. Common size statement.

1. Comparative statement:
Comparative financial statements refer to those statement which exhibit the financial position of a business concern at different periods of times. The statements are prepared in comparative form in this comparatively side by side so as draw conclusion about the profit earning capacity of firm.

2. Common size statement:
Common size statement refer to those statement in which figures reported are converted into percentage to some common base like net sales for income statement and total assets for Balance sheet. In this statement net sales assumed as 100 and other figures are expressed as percentage on net sales.

Question 13.
Write the name of any four sources of cash receipts in a business.
Answer:
Sources for Procuring cash are as follows:

• Sale of fixed assets
• Interest on investment
• Increase in share capital
• Issue of shares and debentures
• Dividend received.

Question 14.
By which method cash flow by operating activities can be calculated ?
Answer:
As per accounting standard-3 operating activities are the principal revenue generating activities of the business. All such activities are included in operating activities of the business which are not related to investment and financial activities and generate income. Cash flow from the operating activities indicates that there is sufficient cash generation which helps the business in its smooth operation.

The cash inflow includes cash receipts from sale of goods and services, cash receipts from royalties, fees, commission etc. and cash outflow includes cash payment for purchases of goods and services, cash payments for wages, salaries and other payments to employee, cash payment of taxes etc.

Question 15.
What do you mean by financial activities ?
Answer:
Financing activities are those activities which relates to long term funds or capital of an enterprise, cash received from issue of equity shares, debentures, raising loan (long term) etc.

Question 16.
What do you mean by non-cash transactions ?
Answer:
The transactions which do not part of Financing or Investing activities are called non-cash items or transaction. For Example : Depreciation, conversion of debenture into shares.

Cash Flow Statement Short Answer Type Questions

Question 1.
Write difference between fund flow statement and cash flow statement.
Answer:
The differences between fund flow statement and cash flow statement are:

Question 2.
What are the uses of cash flow statement ?
Answer:
The uses of cash flow statement may be studied under following:
1. Analysis of cash position:
Cash flow statement explains the reason for lower or higher cash balances. Since it is prepared on cash basis of accounting, it proves very useful for the evaluation of cash position of a business enterprise.

2. Assessment of liquidity:
Liquidity means ability to meet current obligations on due time, i. e., payment to creditors, repayment of bank loan etc. It can be assessed with the help of cash flow statement.

3. Tool of short-term financial planning:
Cash flow statement is helpful in planning short-term need of cash of the enterprise. This statement reveals the position of surplus or deficiency of cash. It is the most appropriate device for short-term analysis.

4. Helpful in estimating future cash flow:
Historical cash flow information provides useful indicators of the amount, timing and certainty of future cash flows. It is also useful in checking the accuracy of parts assessments of future cash flows.

5. Helpful in the formation of policies:
Cash flow statement help in formation of various policies such as repayment of long-term loans, expansion or replacement of fixed assets declaration of dividend etc. which can be successfully implemented with sufficient cash resources.

6. Knowledge of progress of business:
Cash flow statement determine the inflow and outflow of cash from operating activities which show the progress of the enterprise or otherwise.

7. Useful to external analysis:
It is also useful to external analysis particularly to the bankers investors and creditors because they review the financial position of the concern and such review is greatly facilitated by cash flow statement.

Question 3.
Give the format of cash flow statement
Answer:
Format of cash flow statement: Indirect method:

Question 4.
Describe the importance of fund flow statement.
Or
Explain any four objectives of fund flow statement.
Answer:
The objectives of preparing a fund flow statement are as follows:

(1) Helpful in financial analysis:
Financial analysis is facilitated by fund flow statement. The balance sheet do show the financial position but changes in various assets and liabilities is not shown by the balance sheet. The fund flow statement provides information as regard to the changes in various items of assets and liabilities.

(2) Determination of fund from operation:
Fund flow statement provides the information of actual profit earned through operational activities. Fund flow statement determines the fund from operational not activities by re-adjusting those non-trading income, expenses and losses.

(3) Management of working capital:
In fund item statement the word ‘fund’ refers to working capital. Through fund flow statement it can be determined whether there is sufficient amount of working capital within the business or not.

(4) Knowledge of sources and use of fund:
An analysis of various searess of receipt and application of fund can be made through fund flow statement. From the statement the business can determine the various sources and the receipt of as well as sources and quantum of payment.

(5) Knowledge of some important funds:
The fund flow statement provide various significant information to the managers owners and other related parties. These information are:

• Major heads of income and expenses during a period.
• Determination of total fund received from various sources.
• Application of amount on various items.
• How the profit has been used
• Dependency of firms on borrowings.
• Burden of cost of capital etc.

Question 5.
State some differences between cash flow statement and cash budget.
Answer:
The differences between cash flow statement and cash budget:

MP Board Class 12 Accountancy Important Questions

MP Board Class 12th Accountancy Important Questions Chapter 10 Analysis of Accounting Ratios

Analysis of Accounting Ratios Important Questions

Analysis of Accounting Ratios Objective Type Questions

Question 1.
Choose the correct answer:

Question 1.
Ratio analysis means:
(a) To establish mathematical relation between two figures
(b) To establish qualitative relation between two figures
(c) To establish inverse relation between two figures
(d) None of these.
Answer:
(a) To establish mathematical relation between two figures

Question 2.
Current ratio represents:
(a) Surplus of fixed assets over fixed liabilities
(b) Surplus of current assets over current liabilities
(c) Surplus of artificial assets over current liabilities
(d) Surplus of assets over liabilities.
Answer:
(b) Surplus of current assets over current liabilities

Question 3.
Liquid assets refers to:
(a) The assets which can be converted into cash immediately
(b) The assets which cannot be converted into cash immediately
(c) The assets which can be sold at profit
(d) The assets which can be sold at cost price.
Answer:
(a) The assets which can be converted into cash immediately

Question 4.
Meaning of solvency ratio is:
(a) Capability of paying internal debts
(b) Capability of paying external debts
(c) Capability of acquiring assets
(d) None of these.
Answer:
(b) Capability of paying external debts

Question 5.
Capital turnover ratio establishes relationship between:
(a) Sales and purchase
(b) Net sales and capital employed
(c) Gross sales and capital employed
(d) None of these.
Answer:
(b) Net sales and capital employed

Question 6.
The given below classes of ratio mainly calculate the risks:
(a) Liquidity, Activity and Profitability
(b) Liquidity, Activity and Stock
(c) Liquidity, Activity and Solvency
(d) Liquidity, Solvency and Profitability.
Answer:
(d) Liquidity* Solvency and Profitability.

Question 7.
The ……………. ratio calculates the main and suffix gains:
(a) Liquidity
(b) Activity
(c) Solvency
(d) Profitability.
Answer:
(d) Profitability.

Question 8.
In a commercial firm calculation of …………… is done on the basis of its paying capacities of short term liabilities:
(a) Activeness
(b) Liquidity
(c) Debts
(d) Profitability.
Answer:
(b) Liquidity

Question 9.
………….. ratios are an indicator of the intensity of change in proceeds or cash coming from the practice of diverse account:
(a) Activity
(b) Liquidity
(c) Solvency
(d) Profitability.
Answer:
(a) Activity

Question 2.
Fill in the blanks:

1. Liquidity refers to the ability of concerting assets into …………………
2. The capability of paying external debt is found out through …………………
3. Current ratio is also called as ………………… ratio.
4. Gross profit ratio is calculated on ………………… sales.
5.  ………………… ratio can be found out by dividing cost of goods sold by average stock.

Answer:

1. Cash
2. Solvency ratio
3. Working capital
4. Net sales
5. Stock turnover ratio.

Question 3.
Match the columns:

Answer:

1. (b) Capability of paying internal liabilities
2. (a) Description of relationship between current assets and current liabilities
3. (d) Relationship between owner’s fund and total assets
4. (c) Relationship between net sales and capital employed
5. (e) Description relationship between net sales and working capital.

Question 4.
Write true or false:

1. Liquidity ratio refers to the ability of converting assets into cash.
2. Solvency ratio refers to the ability of paying internal debts.
3. Working capital is related to current assets and current liabilities.
4. Debtor’s turnover ratio does not show relationship between net credit sales and average trade debtors.
5. The main purpose of financial reporting is to inform the directors of the organization about the progress of its functionality.
6. Analysis of the data provided in the financial statement is known as financial Analysis.
7. Long term loan of the firm had a deep concern on the Interest and principal sum paying capacity of the firm.
8. A ratio is always expressed as the product of the division of a second number by a number.
9. A ratio shows both quantitative and qualitative aspects.

Answer:

1. True
2. False
3. True
4. False
5. False
6. True
7. True
8. False
9. False.

Question 5.
Write the answer in one word/sentence:

1. The assets which can be converted into cash immediately.
2. Surplus of current assets over current liabilities.
3. The ratio which is used to calculate relationship between net sales and capital employed.
4. Which ratio is related to paying of external debts.
5. Which ratio is related to cost of goods sold and average stock.

Answer:

1. Liquid assets
2. Working capital
3. Capital ratio
4. Solvency ratio
5. Stock turnover ratio.

Analysis of Accounting Ratios Short Answer Type Questions

Question 1.
Explain liquidity ratio.
Answer:
Liquidity means the ability of an enterprise to meet its current liabilities out of current assets. Liquidity ratios are computed to find out the short-term solvency of the enterprise short-term creditors and managers / directors are interested to know liquidity 1 position of the enterprise. These ratios disclose the sufficiency of working capital. Liquid it is the case where assets may be converted into cash without loss. The following ratios are calculated for liquidity test:

• Current ratio or working capital ratio
• Liquid ratio or quick ratio
  

Question 2.
Write differences between current ratio and quick ratio.
Answer:
The difference between current ratio and quick ratio:

Question 3.
What is solvency ratio ?
Answer:
Solvency means the ability of an enterprise to meet its long-term obligations and thus solvency ratios reveals an enterprises ability to meet the long-term indebtness. Principally an enterprise should have sufficient funds to meet the long-term liabilities main solvency ratio are:

• Debt equity ratio
• Total assets to debt ratio
• Proprietary ratio.

Question 4.
What is activity ratio ?
Answer:
Activity ratios are concerned with measuring the efficiency in assets management. It is concerned with employment of assets efficiently and in a profitable way. These ratios are calculated on the basis of sales or cost of goods sold, various assets like stock debtors, bills receivable, fixed assets etc and investments of the concern. These ratios are also known as turnover ratio or performance ratios. Following are important activity ratios:

• Stock turnover ratio
• Debtors turnover ratio
• Creditors turnover ratio
• Net working capital ratio
• Fixed assets turnover ratio
• Current assets turnover ratio
• Capital turnover ratio.

Question 5.
What is profitability ratio ?
Answer:
Profitability means possibility of earning profit on the fund invested in the business. Profitability of a business can be determined on the basis of sales or investment. Usually it is determined on the basis of safes. The condition of profitability of a business concern depend on the sales volume, costing methods and proper use of various financial resources. Hence calculation of the ratio relating to sales, investments and funds of equity shareholders is called profitability ratio. Some important ratios are as given below:

• Gross profit ratio
• Operating ratio
• Net profit ratio
• Return on investments
• Earning per share
• Dividend per share
• Price earning ratio.

Question 6.
What do you mean by current asset in current ratio ?
Answer:
Current ratio establishes relationship between movable assets and movable liabilities. Current ratio includes cash-in-hand, bank, debtors, receivable bills and other properties in current assets.

Question 7.
What is current ratio ? How is it calculated ?
Answer:
Current ratio is used to measure the efficiency of the firm to pay off its short-term liabilities. This ratio establishes the relationship between current assets and current liabilities. This ratio shows whether the current assets of the firm are adequate to meet out its current liabilities or not. This ratio can be calculated by using this following formula:

Question 8.
Which items are included in current liabilities ? (any four)
Answer:
Following items are usually included in current liabilities:

• Creditors
• Bills payable
• Outstanding expenses
• Bank loan
• Bank overdraft
• Unearned income
• Provision for taxation.

Analysis of Accounting Ratios Long Answer Type Questions

Question 1.
Explain the importance of ratio analysis.
Or
Write two objectives of ratio analysis.
Answer:
me importance of ratio analysis for different interest groups is as below:

1. For short-term creditors:
Liquidity ratio i.e., current ratio and quick ratio are computed to find out the short-term solvency of the enterprise. Short-term creditors are interested in liquidity position of the concern. It helps to assess the ability of enterprise to meet its short-term liabilities promptly.

2. For long-term creditors:
Accounting ratios i. e„ solvency ratio discloses an enterprises ability to meet the long-term in debtedness with the help of debt equity ratio and interest ratio, solvency of enterprise can be assessed easily.

3. For managers:
Management takes many decisions in respect of business. Information regarding availability of working capital, compassion with other business unit etc. are received with the help of ratio analysis. With the help of ratio analysis the administrative work can be controlled easily.

4. For investors:
Ratio analysis proves helpful to know the short-term and long-term financial position of a business undertaking which helps investors for investing their money with the expectation of a good return. It enables the investors to study the result of various ratios and to tops proper decision.

Question 2.
Explain the meaning and purpose of the following ratio:

• Current ratio
• Debt equity ratio
• Proprietary ratio
• Capital turnover ratio
• Fixed assets turnover ratio
• Working capital turnover ratio.

Answer:
Meaning and objective or purpose of the ratios are as follows:
1. Current ratio:
Current ratio refers to the relationship between current assets and current liabilities. It measures the firm’s ability to full fill short-term commitment out of its current assets.

Objective:
The objective of current ratio is to assets the ability of enterprise to meet its short-term liabilities promptly.

2. Debt equity ratio:
This ratio expresses a relationship between debt and the equity. Debt means long-term loans, debentures and equity means shareholder’s fund, preference share capital, equity share capital, reserves less losses and fictitious asset like preliminary expenditure.

Objective:
This ratio judges the long-term financial position and soundness of the enterprise. It indicates the proportion between shareholders fund and long – term debts.

3. Proprietary ratio:
This ratio expresses the relationship between the total amount of owner’s funds and total assets. It shows the extent to which the shareholders own the business.

Objective:
Proprietary ratio expresses the general financial position of the enter-prise. It indicates what percentage of total asset has been financed by the shareholders fund.

4. Capital turnover ratio:
This ratio shows the efficiency of capital employed in the enterprise by how many times it is used to produce the sales. It establishes the relationship between sales and cost of sales and capital employed.

Objective:
Capital turnover ratio indicates the efficiency of capital employed in the enterprise by computing how many times the capital being turned overed.

5. Fixed assets turnover ratio:
The relationship between cost of sales or sales and fixed assets is known as fixed assets turnover ratio.

Objective:
This ratio, indicates how efficiently the fixed assets were used in business.

6. Working capital turnover ratio:
Working capital turnover ratio expresses the relationship between working capital and sales. It shows whether or not the working capital is utilized to increase sales.

Objective:
The objective of the ratio in to assertion whether or not working capital has been effectively utilized in promoting sales

Question 3.
What is average collection period?
Answer:
Debtor turnover ratio is related to average collection period which shows that in how many days the firm is realising its debts from debtors. It also highlights upon the quality of the debtors. The lower the .collection period the good the debtors are which is indicative of the fact that debtors are being realized soon. If this period is high, then it indicates that the fing liberal policy of collection realisation from debtors takes lot of time.

Question 4.
Discuss four limitations of Accounting ratios.
Answer:
limitations of Accounting ratios are:

1. Only quantitative analysis and not qualitative:
Under this, attention is not paid on the qualitative reasons. For example, while selling goods on credit to any customer, the attention is paid on his financial position and not on his character and conduct, which are also important.

2. Do not reflect price level changes:
Usually, in the financial statement, price level change is pot included therefore, it may give confusing and misleading results. The analysis while interpreting should keep in mind, the changes in the price level.

3. Represents only a relative position:
Ratios only exhibit a relative position. Therefore, ratios should be understood as substitution of figures or data. There can be sufficient difference between actual figures and ratios.

4. Limited use of a single ratio:
Only one ratio does not exhibit the whole picture of any position. Therefore, without thinking overall ratios related to the presented problem the conclusions drawn on the basis of only one ratio can present confusing picture. Thus, it is necessary that while drawing conclusions all related ratios be thought over.

Question 5.
What do you understand by profitability ratio and sales ratio ?
Answer:

Profitability ratio:
Business is established for earning profits. Profit is necessary for the progress and the development of the business. All the concerned parties related to business are benefited by the profitability ratio. The owner of the business who has invested capital expect return on his capital in the form of profit, the creditors feel assured about the return of their money by profitability and the salary, bonus etc. of the employees also depend upon the profitability ratio of the business.

Sales ratio:
The analysis of profitability can be done on the basis of the sales. The profitability of the business calculated on the basis of sales is justified. The following ratios are calculated under it.

Gross Profit ratio:
This ratio establishes the relation between gross profit and net sales. The computation of this profit is done by deducting direct expenses related to the cost of the goods sold out of net sales. The contribution of gross profit will be more in the net profit when the gross profit will be high. It is calculated as under:

If gross profit is not given then it can be calculated as Sales – Cost of goods sold. Cost of goods sold = Opening stock + Purchases + Direct expenses – Closing stock. Gross profit = Sales + Closing stock – (Opening stock + Purchases + Direct expenses) or Gross profit = Sales – Cost of goods sold.
Net sales is calculated as Net sales = Total sales – Sales returns.

Net profit ratio:
Net profit ratio before tax and after tax establishes the relation between Net profit and Net sales. The objective of computation of this ratio is to determine the efficiency of the whole activities of the institution. In other words to determine the over all profitability. The following point highlight its importance:

• It is also known as the margin of net profit.
• This ratio reveals what part of sales is utilized for generating dividend and how many share is utilized as reserves.
• The financial position of the institution is favorable to face the financial conditions or not.
• Cost of production is increasing due to sale price, demand is decreasing due to production, then what part of sales could be left to face such situation.
• High net profit ratio is a symbol of favorable condition of the institution to face any adverse circumstances. If the ratio is low then it is hot fit for such circumstances.

MP Board Class 12 Accountancy Important Questions

MP Board Class 12th Business Studies Important Questions Chapter 6 Staffing

Staffing Important Questions

Staffing Objective Type Questions

Questions 1.
Choose the correct answer :

Question 1.
Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization is said by :
(a) Theo Haimann
(b) Koontz O’ Donnell
(c) George R Terry
(d) Edwin B Fillipo.
Answer:
(a) Theo Haimann

Question 2.
Various sources of recruitment:
(a) Advertisement
(b) Employment office
(c) Reference
(d) All of the above.
Answer:
(d) All of the above

Question 3.
Aim/objective of interview :
(a) Utility of candidate
(b) To give complete information to candidate about post and organization
(c) Happiness of candidate
(d) All of the above.
Answer:
(d) All of the above.

Question 4.
Employment office is a source of recruitment:
(a) Internal
(b) External
(c) (a) and (b) Both
(d) None of these.
Answer:
(b) External

Question 5.
Best option of selection is choosen by :
(a) Prior analysis
(b) Based on procedure
(c) Analysis of evaluation
(d) Policy.
Answer:
(c) Analysis of evaluation

Question 6.
Training emphasis on :
(a) Theoretical knowledge
(b) General knowledge
(c) All round knowledge
(d) Practical/Behavioral knowledge.
Answer:
(c) All round knowledge

Question 7.
Out of the following on job training :
(a) Case study
(b) Inter ship training
(c) training development
(d) seminar and workshop
Answer:
(c) training development

Question 8.
Staffing is related to :
(a) Political aspect .
(b) Economic aspect
(c) Geographical aspect
(d) Human aspect.
Answer:
(d) Human aspect.

Question 9.
From the following which is a monetary motivation :
(a) Bonus
(b) Pension
(c) Earned leave
(d) All of the above.
Answer:
(d) All of the above.

Question 10.
Recruitment is the process of searching :
(a) Senior employees
(b) Retired employees
(c) Future employees
(d) Special employees.
Answer:
(c) Future employees

Question 2.
Fill in the blanks :

1. ……………. means reasonable appointment and recruitment of employees for implementations of policies.
2. There are…………. sources of recruitment in an enterprises.
3. Reappointment of former employees is an…………. source of recruitment.
4. …………………. is the process in which candidates for employment are divided into two classes. Those who are to be offered employment and those who are not.
5. The process of improving the present skills of employees for higher posts in future is called…………

Answers:

1. Staffing
2. Two
3. Internal
4. Selection
5. Development.

Question 3.
Write the answer in one word/sentence :

1. Write any one internal sources of recruitment.
2. Write any one external source of recruitment.
3. What is the last stage of selection ?
4. Name the method of training in which the training is imparted to employee by giving various jobs in the organization.
5. Name the method of training in which training is given with the help of machines and equipment identical to those used in the place of work.
6. What does training increases morale or work load ?
7. What is develop among workers by training ?
8. Where is on the job training imparted ?
9. What is the modern source of recruitment ?
10. Transfer is which source of recruitment ?
11. How many method are there in training ?
12. By which source of recruitment workers are motivated ?
13. Write one advantage of training to workers ?
14. What is staffing ?
15. Write the name of one external source of recruitment.

Answer:

1. Transfer
2. Recruitment through advertisement
3. Placement
4. Job rotation
5. Vestibule training
6. Morale
7. Self confidence
8. Work place
9. Internet
10. Internal source
11. Two
12. Internal source
13. By training efficiency and capability of worker increases
14. Staffing means reasonable appointment and recruitment of employees
15. Employment exchange.

Question 4.
Write true or false :

1. By training knowledge, efficiency and capacity of workers increases.
2. Recruitment is the part of human resource.
3. Recruitment develops the feeling of owners among the workers.
4. Recruitment and selection of workers is same.
5. Expenditure done on recruitment is waste of money.
6. There is no difference between training and development.
7. Internship training provides both theoretical and practical training of work.

Answer:

1. True
2. True
3. True
4. False
5. False
6. False
7. True

Question 5.
Match the coloums:

Answers:

1. (b)
2. (c)
3. (a)
4. (e)
5. (d)
6. (f)

Staffing Very Short Answer Type Questions

Question 1.
What is training ?
Answer:
Training is the workshop of gaining more and high knowledge. Training is the act of increasing the knowledge and skill of an employee for doing a particular job.

Question 2.
What do you mean by ’transfer’ as a form of internal sources ?
Answer:
Transfer involves the shifting of an employee from one job to another. At the time of transfer, it is ensured that the employee to be transferred to the new job is capable of performing the jobs. When transfer is done at the same post then there is not much difference in salary and facility.

Question 3.
What do you mean by orientation in the process of staffing ?
Answer:
Orientation means to acquaint the employees with their work and organization. In order to work as a term new employees are introduced to their subordinates and seniors. The employee is acquainted with the policies, aims and objectives of the organization.

Question 4.
What do you mean by ’Placement’ as a step of staffing ?
Answer:
After the selection of the candidates for the post ‘Placement’ takes place. As per the terms and conditions and date of joining mentioned in the appointment letter the candidate has to join the duty. From the very date of his joining, he is treated as an employee of that office.

Question 5.
What is campus recruitment ? .
Answer:
A business organization may liaise with universities, colleges, vocation or management institutions to recruit newly qualifies students for technical profession or managerial position. Campus recruitment is a well established practice followed by business to appoint fresh talent in the organization.

Question 6.
What are the three important aspects of staffing.
Answer:
The important aspects of staffing are :

1. Recruitment
2. Selection
3. Training

Question 7.
What do you mean by apprenticeship training ?
Answer:
This is one of the oldest method of training. The main purpose of this training is to make the employees well versed in a specific art or technique. This method is used in those cases where long-term training is required to attain proficiency to perform a particular task. In this training stipend is paid to the candidates.

Question 8.
Out of the two, recruitment and selection which process positive and why ?
Answer:
Recruitment is positive process because large number of candidates are invited and motivated to apply for a post.

Question 9.
Why is selection called negative process ?
Answer:
Selection is a negative process because in this process qualifiers are lesser as compared to rejected.

Question 10.
State the difference between work load analysis and work force analysis.
Answer:
Work load analysis assesses the number and type of human resources required to perform jobs in the organization. Work force analysis estimates the number and type of human resources available in the organization.

Question 11.
Internal recruitment is better than external recruitment in many ways. Explain one reason.
Answer:
External recruitment demands expense for advertisement and conduction of examination where we can eliminate these expenses in internal recruitment.

Question 12.
Which source of recruitment motivates the employees ?
Answer:
Internal source of recruitment encourages and motivates the employees as it provides an opportunity to reach to higher posts.

Question 13.
What is meaning of Training ? How is it different from education ?
Answer:
Meaning of Training: Training is a systematic programme to increase the knowledge, skills, abilities and aptitudes of workers to perform specific jobs. The purpose of training is to achieve a change in the behaviour of those trained and to enable them to do their jobs in a better way.

Definitions : According to Jucius, “The term training is used here to indicate only process by which the aptitudes, skills and abilities of employees, to perform specific jobs are increased.”

Training

1. This enhances the ability and skill of the employee
2. The teacher new skills and process

Education

1. This help to ingress the knowledge of employee
2. This enable the capability to debate and analyze

Question 14.
What are the elements of a good training programme ?
Answer:
Following are the elements of a good training programme :

1. Training programme should be according to aims and objectives of organization.
2. More attention should be paid to train the weak employees.
3. Training programme should go on continuously.
4. Training programme should be flexible.
5. Training programme should be given by a specific person.

Question 15.
What is Orientation / Induction ?
Answer:
Orientation / Induction is a method of trainning to familarize the new employee with the surroundings of the organization, provide information about the organization, its rules and regulations.

Question 16.
What do you mean by recruitment ? How many sources of recruitment are there ?
Answer:
Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in organization.

There are two sources of recruitment:

Internal source: An internal source of recruitment means inviting applications from personnel working within the organization.
External source : An external source of recruitment means filling all the vacancies created in the organization which are not filled by internal sources. To fill the vacant positions the business organization may have to rely on external source.

Question 17.
On the job training methods and off the job training methods. Explain.
Answer:
On the job training method : Under this the employees are trained while they are actually performing the job assigned to them. They learn in real work environment and gain practical experience.
Off the job training method : Under this method employees are trained in specially designed training locations which are away from work.

Question 18.
In which source of recruitment employee becomes inactive ?
Answer:
In internal source of recruitment employee becomes inactive because they know that they are going to be promoted to higher posts after a certain period of time.

Question 19.
When is transfer technique important ?
Answer:
Transfer technique means shifting an existing employee within the organization from one job to another, one shift to another or from one department to another. It helps to maintain optimal staff in the organization and trains employee for different types of jobs. It is the horizontal movement of staff.

Question 20.
Write any three characteristics of recruitment.
Answer:
Characteristics:

1. It is a process of searching employees and there are many sources of it.
2. Recruitment is positive and it precedes selection.
3. The number of candidates are maximum in recruitment and it is limited to the extent of calling an application.

Question 21.
What do you mean by recruitment through demotion ?
Answer:
When a person is recruited at a lower post then his current status, it is known as demotion recruitment. In this an incapable person is demoted from a higher position to a lower and a capable person is promoted to the vacant positions.

Question 22.
Why there is lack of favor during recruitment through external sources ?
Answer:
The recruitment through external source lacks favor for the recruitee as the management is unaware about him and has no previous details about him.

Question 23.
What is the expense on training known as ? Expenditure or investment.
Answer:
The expense on training is known as investment.

Question 24.
Why are internal sources considered more economical than external sources ?
Answer:
Internal sources of recruitment are the sources considered available within the organization, they are considered to be more economical for the following reasons :

1. It saves money as it does not require any kind of formal advertising of vacant position.
2. It saves time as it shortens the process of recruitment and selection.
3. It does not require any kind of orientation or induction training.

Question 25.
What do you mean by interview ?
Answer:
After basic screening and written tests, the selected candidate go through the formal interview process. It is the in depth conversation between interviewer and interviewee where interviewer may seek information from interviewee and the interviewee is expected to provide the same.

 Staffing Short Answer Type Questions

Question 1.
Explain in short three internal sources of recruitment.
Answer:

1. Promotion: Competent and experienced persons of the enterprise are promoted to higher post to fill up the vacancy.

2. Transfer: Transfer involves the shifting of an employee from one job to another. At the time of transfer it is ensured that the employee to be transferred to the new job is capable of performing the job.

3. Recommendation of existing staff: Any vacancy can be filled up by appointing the relatives or friend on the basis of recommendation of existing staff.

Question 2.
Explain any four external sources of recruitment.
Answer:
External sources of recruitment are as follows :

1. Re appointment of former employees : Sometimes ex employees are reappointed in an organization. This is beneficial in two ways:

1. Experienced personnel become available and
2. Economy is achieved.

2. Direct recruitment in the office: This type of recruitment is done by the personnel department or selection section.

3. Recruitment through employment exchange: Public employment exchanges are also an important source of recruitment.

4. Friends and relatives of present employees: Present employee invite their friends and relatives for recruitment.

Question 3.
Explain the following method of training in brief:

1. Vestibule training
2. Internship training.

Answer:

1. Vestibule training: Vestibule training is such type of training which is given with the help of machines and equipment identical to those used in the place of work in specially created laboratories called vestibule laboratories etc. This type of training does not effect the production.

2. Internship training : The main aim of this training is to provide both theoretical and practical type of training with the joint effort of some technical institutes and business I undertakings this type of training is provided to the students to learn theoretical as well as practical aspects of job. For e.g.: In medical colleges medical students are given theoretical knowledge and in hospitals they are provided practical knowledge due to which students get I the practical training of theoretical knowledge.

Question 4.
Why is selection called the Negative process ?
Answer:
Selection is a Negative process because in this process the number of candidates | who are suitable for the jobs are less than the rejected people.

Question 5.
Why is internal source of recruitment more reliable ?
Answer:
Internal source of recruitment is more reliable than external source because the organisation already have full knowledge about the workers. The workers also have full knowledge about the system and working of organisation.

Question 6.
What is recruitment ?
Answer:
Recruitment is the process of searching for prospective employees and stimulating [ them to apply for job in the organization. The objectives of recruitment is to provide with the
organization, a large number of eligible people, from whom the most appropriate one may be selected.

Question 7.
Write short note on employment exchange.
Answer:
Employment exchange is an important source for the recruitment of employees. Employment exchange registers the different persons desirous to work in different posts. Institutions may contact employment exchange for suitable employees to fulfil their vacant posts.

Question 8.
Define staffing.
Answer:
Staffing may be defined as the managerial function hiring and developing the required personnel to fill in various positions in the organization.

Question 9.
What is selection ?
Answer:
Selection is the process in which candidates for employment are divided into two classes. Those who are to be offered employment and those who are not.In the present day, this system has become very much popular. Through this test general intelligence of the candidate is measured so that it can be known that how intelligent the candidate and how much he is cautious.

Question 10.
What is aptitude test ?
Answer:
This test is essential for knowing the aptitude towards work and to collect infor-mation about work. This type of test is according to the nature of work and post. Aptitude test is conducted to check the interest of employees towards work.

Question 12.
What do you mean by physical verification ?
Answer:
Physical verification : The complete bio-data of the candidate is called in this test. Side by side, police verification is made for the verification of candidate’s character. Two references, may be called for the candidate for the verification of character. If the candidate has worked somewhere else, then reference may be called from the previous employers.

Question 13.
What is pre test ?
Answer:
When the number of application of applicants are maximum and it is necessary to minimize the incompetent candidates by,

1. Physical measurement,
2. Intelligence and skill test,
   e.g., PET, PMT, Pre-PSC etc.

Question 14.
What is interest test ?
Answer:
In this test candidate’s interest, hobby and habit are tested for this some questions relating to interest are given and candidates are asked to solve only 25% of questions. Candidates will solve only those 25% of questions in w hich the candidate is having interest.

Question 15.
Explain the methods of off the training in short ?
Answer:
1. Case study method : This is the modem method of training. This method was developed in Harvard School of America in the year 1920-25. In this method the worker is entrusted with the problem and asked to study its various aspects and suggest the solutions. If the worker does not gives right solution then he is guided how to make right decision. This method is suitable where number of trainee is less. It is an expensive method.

2. Seminar and conference method : In this method 20-30 employees shares their views and opinions. Workers can also get solutions of the problems by asking questions. Through this method out of various alternatives the best alternative is selected various enterprises holds these type of seminars and conferences.

3. Induction training : After selection of employee if he is said to perform the work then he will feel uneasy. Thus while dividing the work, for some days he is introduced with the working environment, subordinates, objectives, seniors so that he can perform the work effectively.

Question 16.
Why are internal sources of recruitment economical ? Give three reasons.
Answer:
The internal sources of recruitment are economical because :

1. No, expenditure on advertisement and inviting on application form.
2. There is no expenditure done on training. Even if it is there it is very nominal.
3. Workers are aware of general rules and regulations of the organization. So no expenditure is done on it.

Question 17.
Do you say that external source of recruitment is more time consuming ?
Answer:
Yes I do agree with it because in external sources application forms are invited. After getting application of candidates they are scrutinized. Some candidates are rejected. The suitable candidates are called for interviews, their medical checkup is done. All these activities take lot of time. So it is said that external sources are time consuming.

Question 18.
How is direct recruitment done in the office ?
Answer:
This type of recruitment is done by the personnel department or selection section. The following process is adopted in this system :

1. To call applications on the basis of advertisement.
2. To conduct written examination in the case the number of applicants are maximum as if it is necessary.
3. To take personal interview of the candidates who pass the written examination.
4. To take different test, if it is necessary.

Question 19.
Why are employees of an enterprise transferred ?
Answer:
Employees are transferred due to the following reasons :

1. To expose the person to a variety of jobs.
2. To avoid monotony associated with the execution of a particular job.
3. To penalize him, sometimes transfer orders are issued as penalty for an undesirable action.
4. A request by the employee himself, expressing his desire to work at some other work spot.

Question 20.
Explain the advantages of recruitment through internal sources.
Answer:

1. Knowledge of general rules : Due to years of service, employees know the rules and policies of the organization. So, it is not necessary to give them knowledge like fresh employees. This saves time and money.

2. Minimum cost: Recruitment process requires high expenses. There expenses can be saved.

3. Reduction in training cost: Employees of the organization know well, the working methods and techniques. So, they don’t require training for general work.

4. Increase in efficiency: Employees are aware of the fact that they will get promotion in future if they perform their work sincerely and with full dedication. This improves their
efficiency

Question 21.
Write in short about the various tests for selection,
Answer:
Following are the tests of selection :

1. Main test: The main basis of selection is main test. This test is generally taken in the written form. In this test, the following tests are taken :

(i) Ability test: The general ability of the candidate is highlighted in this test

(ii) Trade-test: This test is very important because through this test it is known that whether the candidate is competent for the work or not. As test is taken for the post of Draftsman by making drawings, for the post of operator by driving machines etc.

(iii) Interest test: In this test, candidate’s interest, hobby and habit are tested. For this, some questions relating to interest are given and candidates are asked to solve only 25% of questions. Candidates will solve only those 25% of questions, in which the candidate is having interest.

(iv) Personality test : In this test, candidate’s family, social, intellectual and emotional status are measured.

(v) Intelligence test: In the present day, this system has become very much popular. Through this test general intelligence of the candidate is measured so that it can be known that how intelligent the candidate is and how much he is cautious.

(vi) Language ability : Language ability has also great importance, because for work, the knowledge of local language is very important. If a person does not know English and is appointed at Air Port, then he can not perform his duty satisfactorily.

(vii) Aptitude test: For knowing the aptitude towards work, this test is important.

Question 22.
What do you mean by training on job ? Explain its type.
Answer:

On the job training : In this method of training workers learn by doing. On the job training aims at learning and earning simultaneously. Trainees work under the guidance and supervision of experts. The trainees follow the orders and instructions of experts. This method is less expensive. The trainee gets practical training more but lacks in theoretical training.

1. Apprenticeship training : This is one of the older method of training. It is still prevalent nowadays also. The main purpose of this training is to make the employees well versed in a specific art or technique. This method is used in those cases where long term training is required to attain proficiency to perform a particular task. In this method work is entrusted to each trainee according to prescribed programme and training is managed. Generally stipend is paid to the candidates. This training provides theoretical as well as practical knowledge to employees.

2. Job rotation method : In an enterprise when training is given to employee of various jobs, it is called as job rotation method. The main demerit of this method is that due to this method the employees lack specialization in one field. This type of method is very popular in banks. .

3. Training on training centres : First of all according to the necessity training centres are established in this method. These training centres are established by government or commercial enterprises. More stress is given on practical training than on theoretical training. Since training is given in training centres thus it does not effects the production.

4. Training by experienced workmen : Training by experienced workmen will be important and useful in that condition when experienced workmen requires helpers. The object of the training is to make the employee aware and believe in the ideologies of the working.

5. Training by supervisors : This type of training is provided by supervisors or experienced officers. These officers or supervisors are close to the trainee thus it helps the trainee to make communication with officers. This method helps in determining the abilities and efficiency of trainee during the work performed in training.

6. Internship training : The main aim of this training is to provide both theoretical and practical type of training with the joint effort of some technical institutes and business undertakings this type of training is provided to the students to learn theoretical as well as practical aspects of job. e.g., In medical colleges medical students are given theoretical knowledge and in hospitals they are provided practical knowledge due to which students gets the practical training of theoretical knowledge.

Question 23.
What is web publishing as external source of recruitment ?
Answer:
Internet is one of the most used source of recruitment. There are various websites like naukri.com, monster.com, career builder.com etc. specially designed and dedicated to
provide information about job seekers and job openings. Prospective employees and organization looking for desirable candidates may visit these websites to select the right person for the right job. The companies may have information about positions vacant on their own websites as well.

Question 24.
The functions of staffing should be done by all organizations and management efficiently.
Answer:
The work of staffing should be done by all managers effectively because if the suitable and efficient candidates are not selected then there will be wastage of time, material and efforts. Due to it the production will be reduced and cost of production will be increased. The manufactures will not be able to sell the product by profit. So it is essential that capable persons should be appointed for the work and they should be provided proper training.

Question 25.
What information is given to the workers under induction orientation programme ?
Answer:
Under induction orientation programme the following information can be given :

1. Short history of the company,
2. Policies of the company
3. Functional structure of the company
4. Location of the departments
5. Facilities provided to workers
6. Rights and duties of the new employees
7. Working hours
8. Rules of leaves
9. Rules related to discipline.

Question 26.
Distinguish between on the job and off the job training methods.
Answer:
Difference between On the job training and Off the training :

On the job training

1. By it we mean those methods which training is given on working places
2. In it during the working period the principle of learning through work is adopted
3. On the job training aims at learning and earning simultaneously
4. Trainees work under the guidance and supervision of experts during the work

Off the job training

1. By it we mean those methods by which training is given out side the working place
2. In it principles of learning are adopted before doing work
3. Off the job training aims at learning and earning separately
4. Employees work under the guidance of experts but they are already trained before the job.

Question 27.
Write the import acceptance of stalling.
Answer:

1. It helps in .achieving targets
2. It reduces cost of production
3. It helps in job satisfaction
4. It promotes individual growth
5. It helps in obtaining corporate recognition
6. Reduces labour turnover
7. Maximum productivity.

Question 28.
Explain the advantages of training to organization.
Answer:
Advantages of training to organization : Training is a process which aims to incorporate or improve the attitude, skills and abilities amongst employees to perform specific jobs.
Advantages of training to organization :

1. Systematic learning process
2. Enhances productivity
3. Develops future managers
4. Higher profits
5. Less wastage and reduced risks of accidents
6. Reduce absenteeism and employee turnover
7. Helps to adapt changes in business environment.

Question 29.
What is the advantage of training to employees ?
Answer:
Advantages to employee :

1. Growth opportunities
2. Higher income
3. Increases efficiency and reduces risks
4. High morale and job satisfaction
5. Makes new employees comfortable in new environment.

Question 30.
Throw light on reappointment of former employees in recruitment process as external source.
Answer:
Reappointment of former employees : Sometimes, employees are reappointed in an organization after a break in their service. Many a time, retiring personnel are also given an option to continue in the same firm, but at a lower remuneration. This proves beneficial to organization in two ways:

1. Experienced personnel become available,
2. Economy is achieved.

Question 31.
What do you understand by checking of reference ?
Answer:
In application form the candidates have to give two names of reference. If the candidate passes the interview then organization tries to find out about the characters of the candidates. For getting the information he gives preferences to references. Organization gets information about the characters of the candidates through other people or names of people given as references.
Physical verification : The complete bio-data of the candidate is called in this test. Side by side, police verification is made for the verification of candidate’s character. Two references, may be called for the candidate for the verification of character. If the candidate has worked somewhere else, then reference may be called from the previous employers.

Question 32.
What is the role of friends and relatives in recruitment ?
Answer:
Friends and relatives of present employees : Present employees invite their friends and relative for recruitment. This system is also beneficial for the organization, because recruitment of employees from acquainted persons, gives a fair chance to recruit good employees. Besides, for any error, done by the new employee, the present employee becomes responsible for such error.

Question 33.
Write the role of advertisement in recruitment.
Answer:
Advertisement is an important source of recruitment. It is an effective method of searching workers outside organization. Through advertisement large No. of people are attracted to words organization for middle level and lower level posts advertisement is done through newspapers, televisions employment news and other magazines. In advertisement information is given about nature of work, remuneration time of working etc.

Staffing Long Answer Type Questions

Question 1.
Explain internal and external sources of recruitment.
Answer:
(a) Internal sources : Internal source of recruitment refers to recruitment from within the enterprise. There are two important internal sources :

1. Promotion : Competent and experienced persons of the enterprise are promoted to higher post on the basis of their qualifications and seniority to fill up the vacancy. This system is almost applied by all the enterprises. Some posts, where experience is important in filled up by promotion only. For e.g., the post of the Principal in school or college, the post of Vice-Chancellor in a University.

2. Transfer: Transfer involves the shifting of an employee from one job to another. At the time of transfer, it is ensured that the employee to be transferred to the new job is capable of performing the jobs. Transfers become essential due to the following reasons :

1. To expose the person to a variety of jobs.
2. To avoid the monotony associated with the execution of a particular job.
3. To penalize him, sometimes transfer orders are issued as a penalty for an undesirable action.
4. A request by the employee himself, expressing his desire to work at some other work spot.
5. To.accommodate the excess staff at hand.

(b) External Sources: If the organization feels that the needed human resources are not available within the enterprise, it will have to depend on outside sources. The following are the external sources for recruitment:

1. Reappointment of former employees: Sometimes, ex-employees are reappointed in an organization after a break in their service. Many a time, retiring personnel are also
given an option to continue in the same firm, but at a lower remuneration. This proves beneficial to the organization in two ways :

1. Experienced personnel become available
2. Economy is achieved.

2. Friends and relatives of present employees: Present employees invite their friends and relatives for recruitment. This system is also beneficial for the organization, because
recruitment of employees from acquainted persons, gives a fair chance to recruit good employees. Besides, for any error, done by the hew employee, the present employee becomes responsible for such error.

3. Direct Recruitment in the office: This type of recruitment is done by the personnel department or selection section. For external appointment, information is affixed in the notice board of the office relating to vacant post, conditions, etc. Side by side, advertisement is also given in the daily newspaper, so that the best selection can be made.

4. Recruitment through employment exchange : Public employment exchanges are also an important source of recruitment of personnel. Job seekers register their names with these exchanges and the names of these persons will be supplied to business concerns on the basis of their requisition.

5. By advertisement: This system is very popular nowadays. Advertisement is made in newspapers, journals and trade and professional periodicals stating the available job, duties and responsibilities, emoluments, qualification and experience required for the job. This is one of the popular method used by business concerns to recruit personnel from external sources.

6. By trade unions : In some areas, trade unions are very influential and they think it correct to recruit labour through them so that trade union may be much stronger. Some producers, to reduce their burdens direct trade unions for recruitment. While making recruitment ‘through this system care should be taken that incompetent and inefficient person may not get appointment and from trade union there should be no pressure for recruiting such type of personnel.

7. Through educational and vocational institutes : Today, employment bureau has been opened in colleges and universities. In this, information related to employment are given to the desired people. Similarly, some commercial organizations are also in existence which help to get employment to unemployed persons.

8. Through other undertaking: In some commercial organizations, there is a system of exchange of employees. Its object is to exchange the art and talent in each other business. This recruitment is done for one or two persons. Sometimes when the promotional prospects become nil in one company and if promotional prospects are high in other company, a recruitment from the first company is done.

9. Retired defense personnel: The defense personnel retires at the age of 35 to 45 years. These personnel show great interest to get employment elsewhere. These personnel always remain disciplined, honest and laborious. Central and State Govt, also appoint defense personnel to some post (as Chancellor, Vice-Chancellor) which needs the quality of discipline. Hence, this is also an external source.

Question 2.
Distinguish between internal and external source of recruitment.
Answer:
Differences between Internal Sources and External Sources

Internal Sources

1. Vacant posts are filled with employees available within the organization in case of internal sources.
2. It is the most economical source because the organization does not have to spend any amount on search for sources of recruitment.
3. There is no risk for selection in high post as the organization has full information about the employees working there.
4. The major demerit of internal recruitment is that it stops the entry of young blood in the organization.
5. It is fastest and time saving process.
6. This recruitment system linders the entry of better qualified employees which hampers the sense of competition.
7. This process of recruitment encourages other works for improving their skills.

External Sources

1. It means inviting applications for filling up the vacancies from candidates outside the organization.
2. It is an expensive process as it involves . advertisement and at long selection process and training.
3. There is always a possibility of wrong selection as there is no complete information about the external candidates.
4. It helps the young and fresh talents to enter the company or organisation.
5. It is very lengthy and time consuming process.
6. Through this process new employees are recruited which develops competitive sport among existing and new employees.
7. When new employees are selected through this process a feeling of frustration and dissatisfaction develop. New organizations have to make use of the external source.

Question 3.
What advantages employees and organization get through training
Answer:
Advantages of training to organization : Training is a process which aims to incorporate or improve the attitude, skills and abilities among employees to perform specific jobs.

Advantages of training to organization :

1. Systematic learning process
2.  Enhances productivity
3. Develops future managers
4. Higher profits
5. Less wastage and reduced risks of accidents
6. Reduce absenteeism and employee turnover
7. Helps to adapt changes in business environment.

Advantages to employee :

1. Growth opportunities
2. Higher income
3. Increases efficiency and reduces risks
4. High morale and job satisfaction
5. Makes new employees comfortable in new environment.

Question 4.
Explain the source of recruitment through chart

Question 5.
Distinguish between recruitment and selection.
Answer:

Recruitment

1. There are many sources of recruitment.
2. It is a process of searching employees.
3. Recruitment is positive.
4. Recruitment precedes selection.
5. Recruitment word is used generally for lower level employees.
6. The number of candidates are maxi-mum in recruitment.
7. The ultimate object of recruitment is to search employees.
8. Recruitment is limited to the extent of calling an application.
9. Recruitment is a means.
10. Recruitment is the first portion of a coin.

Selection

1. There is a specific process of selection of employees.
2. Selection and appointment are given for the present.
3. It is a negative process.
4. Appointment letter is issued after selection.
5. Selection word is used for all levels.
6. The number of candidates are minimum in comparison to recruitment.
7. The ultimate object of selection is to select employees and to appoint.
8. Selection is related with screening of applications, conducting different tests and to make final appointment for work.
9. Selection is itself a device.
10. Selection is the second portion of a coin.

Question 6.
What are various methods of training ?
Answer:
Following are the tests of selection :

1. Main test: The main basis of selection is main test. This test is generally taken in the written form. In this test, the following tests are taken :

(i) Ability test: The general ability of the candidate is highlighted in this test.

(ii) Trade-test: This test is very important because through this test it is known that whether the candidate is competent for the work or not. As test is taken for the post of Draftsman by making drawings, for the post of operator by driving machines etc.

(iii) Interest test: In this test, candidate’s interest, hobby and habit are tested. For this, some questions relating to interest are given and candidates are asked to solve only 25% of questions. Candidates will solve only those 25% of questions, in which the candidate is having interest.

(iv) Personality test : In this test, candidate’s family, social, intellectual and emotional status are measured.

(v) Intelligence test: In the present day, this system has become very much popular. Through this test general intelligence of the candidate is measured so that it can be known that how intelligent the candidate is and how much he is cautious.

(vi) Language ability : Language ability has also great importance, because for work, the knowledge of local language is very important. If a person does not know English and is appointed at Air Port, then he can not perform his duty satisfactorily.

(vii) Aptitude test: For knowing the aptitude towards work, this test is important.

Question 7.
What do you mean by web publishing as external source of recruitment ?
Answer:
On the job training : In this method of training workers learn by doing. On the job training aims at learning and earning simultaneously. Trainees work under the guidance and supervision of experts. The trainees follow the orders and instructions of experts. This method is less expensive. The trainee gets practical training more but lacks in theoretical training.

1. Apprenticeship training : This is one of the older method of training. It is still prevalent nowadays also. The main purpose of this training is to make the employees well versed in a specific art or technique. This method is used in those cases where long term training is required to attain proficiency to perform a particular task. In this method work is entrusted to each trainee according to prescribed programme and training is managed. Generally stipend is paid to the candidates. This training provides theoretical as well as practical knowledge to employees.

2. Job rotation method : In an enterprise when training is given to employee of various jobs, it is called as job rotation method. The main demerit of this method is that due to this method the employees lack specialization in one field. This type of method is very popular in banks. .

3. Training on training centres : First of all according to the necessity training cen-tres are established in this method. These training centres are established by government or commercial enterprises. More stress is given on practical training than on theoretical training. Since training is given in training centres thus it does not effects the production.

4. Training by experienced workmen : Training by experienced workmen will be important and useful in that condition when experienced workmen requires helpers. The object of the training is to make the employee aware and believe in the ideologies of the working.

5. Training by supervisors : This type of training is provided by supervisors or experienced officers. These officers or supervisors are close to the trainee thus it helps the trainee to make communication with officers. This method helps in determining the abilities and efficiency of trainee during the work performed in training.

6. Internship training : The main aim of this training is to provide both theoretical and practical type of training with the joint effort of some technical institutes and business undertakings this type of training is provided to the students to learn theoretical as well as practical aspects of job. e.g., In medical colleges medical students are given theoretical knowledge and in hospitals they are provided practical knowledge due to which students gets the practical training of theoretical knowledge.

Question 8.
What are internal sources of recruitment better than external sources ? Explain by giving reasons.
Answer:

Internal sources of recruitment are better than external sources because of the following reasons: ,

1. Knowledge of general rules : Due to service for many years, these employees know the rules and policies of the organization. So, it is not necessary to give them knowledge like a fresh employee. This saves time and money.

2. Morale is increased : Transparent policies help the employees in knowing as to when their promotions fall due and hence they strive hard for it. Thus, their morale increases.

3. Minimum cost: Expenses in this type of recruitment are kept to a minimum, as filling of jobs internally is cheaper as compared to getting candidate from external sources.

4. Increase in efficiency : In this system, all employees know that they will get promotion in future and side by side efficient and dedicated employee will be promoted shortly. With this hope, they work with full interest and dedication. Through this, their efficiency increases.

5. Reduction in training cost: Employees of the organization, know well the working methods and techniques of work. So, they don’t require training for general work. Training is imparted only to update them with the new technologies and working methods.

Question 9.
Differentiate between Training and Development.
Answer:
Differences between Training and Development:

Question 10.
What is the importance of training ?
Or
Explain the need of training.
Answer:
1. Increase in productivity : The objective of training is to complete the work speedily and effectively. If a work is done speedily and effectively in an enterprise than production will increase which will bring profits to enterprise. Training boosts the morale of employees which increases the efficiency of employees’. This increases the production and productivity of enterprise.

2. Lesser accidents: Training provides complete knowledge about working of plants and machines to employees which increases the operational efficiency and chances of accidents are reduced.

3. Lesser supervision and direction : Supervision and direction is required for the effective completion of work. But after getting training employees have the knowledge about their work and equipment so lesser supervision and direction is needed.

4. Proper use of machines and equipment: Trained employees uses machines and equipment properly and minimizes wastage. A trained employee has the knowledge of operating machines and equipment methodically.

5. Boosts the morale of employees : Training provides self confidence and develops creativity of employees. Training helps in boosting the morale of employees which creates interest towards job.

6. Reduction in supervision cost: Trained employees become more disciplined and take more interest in their job. Employees do not require supervision and direction which reduces the supervision cost.

7. Quality goods : Training provides knowledge about use of machines and equipment which enables the employees to handle machinery and equipment in a better way by minimizing wastage. This helps in production of high quality goods at minimum cost.

8. Better chances of promotion : Trained employees can be promoted to higher posts or grades easily as compared to untrained employees since they have requisite qualification and training.

9. Adaptibility : Training makes the employees keen to Team new things. The trained employees can easily adapt to modem methods, techniques, etc. since training stimulates mental development of employees.

10. Helpful for new employees : Training is necessary for new employees because there is a lot of differences between theoretical and practical knowledge. Training provides practical knowledge to employees about work.

11. Helpful in facing competition: Through training the information about new methods is given and it also provides the knowledge about increasing the production in less time. Thin helps in reducing the cost of production which help in facing competition.

12. Industrial peace : After training each employee is indulged in the activities (Commercial) of enterprise which helps in maintaining industrial peace in enterprise. Training helps in establishing and maintaining harmonious industrial relation.
Above points make it clear that training has advantages both for the enterprise and the employees. Without training the entrepreneurs cannot reach the peak of success.

Question 11.
Write procedure of selection in short.
Or
Discuss the process of selection.
Answer:
“Selection is the process in which candidates for employment are divided into two classes. Those who are to be offered employment and those who are not.”
Selection involves choosing personnel to fill specific jobs in the organization on the basis of educational qualifications, training, skill, abilities and personality of the persons available for the jobs.
Selection process

1. Pretest: When the number of application of applicants are maximum and it is necessary to minimize the incompetent candidates by

1. Physical measurement
2. Intelligence and skill test, etc.

2. Blank application form : After pretest form a blank application is sent to those candidates who have qualified in the pretest. This form is prepared in a most scientific and technical manner. Mainly three types of informations are demanded :

1. Personal informations
2. Psychological informations
3. Working competency information.

3. Main test: This test is generally taken in the written form. In this test the following tests are taken:

1. Ability test
2. Trade test
3. Interest test
4. Personality test
5. Intelligence test
6. Language ability
7. Aptitude test.

4. Interview : No appointment is possible without interview. Interview is the best and most popular method. Interview has a great importance for the post of upper level. In this method, the team of selection and candidate, sit together and discuss with each other. The candidate is evaluated through this discussion.

5. Physical verification : The complete bio data of the candidate is called in this test. Side by side, police verification is made for the verification of candidate’s character. Two references may be called for the candidate for the verification. If the candidate is having any serious disease then his name is cancelled from the selection list.

6. Physical test : Physical test is done of those candidates, who have been finally selected. This is done about the general health of the candidate. Side by side, it is known whether the candidate is having any serious diseases as T.B., AIDS, etc. or not. If the candidate is having any serious disease, then his name is cancelled from the selection list.

Question 12.
Explain any five principles of selection.
Answer:
The principles of selection are :

1. Selection through competent persons : While selecting employees the selector must be a competent person so that an efficient employee can be selected.

2. Fixed standards: Standards should be fixed for selecting employees so that efficient employees can be selected.

3. Impartial : Selection should be fair and impartial. Selector should be far from pride and prejudice.

4. Flexibility : Selection process must be flexible in nature. According to needs of the enterprise and situation necessary changes can be made in selection process.

5. Rules and Laws : Selection process must be according to the rules of enterprise and laws of country.

Question 13.
Explain the methods of recruitment
Answer:
Following are the methods of recruitment:

1. employment of former employees : Employees who have already worked in the organization and have retired or have left the services for some reason posses sufficient experience and skill. Therefore, such employees are re-employed. The governments are also availing the services of retired employees by offering them re-employment. The expenditure for training of such employees is comparatively lesser because they are reliable and possess vast experience. They are especially useful for some technical posts. Often, such posts are filled for vacancies in higher grades.

2. Friends and relatives of present employees : The organization has full confidence in the employees and, therefore, through these employees their friends and relatives who are reliable and competent are employed, the present employees stand guarantee to new employees so recruited. Although the organization gets an opportunity to secure most suitable candidates because they are known to the present employees, sometime favoritism creeps in and incompetent candidate is selected.

3. Direct recruitment in the office : Such recruitment is often done by the Personnel or Services Department of the enterprise. A notice is displayed on the office notice board for such recruitment specifying the number of vacancies and terms and conditions of recruitment. Such notice is published in the daily newspapers also.

4. Recruitment through employment exchange : The employment exchanges are an important source of recruitment. They are established in every district place. They possess list of unemployed candidates with their address, qualification etc. Enterprise or the employers call for applications from such employment exchanges are make direct recruitment.

5. Recruitment through advertisement: Nowadays recruitment through advertisement is very popular and adopted by majority of enterprise. Transparency can be maintained through such recruitment. Organization where technically qualified candidates are needed, recruitment through advertisement is considered to be a better option. Today, recruitment in government or non-government organization through advertisement is considered as the best source. By advertising in newspapers, applications from suitable candidates can be procured in a large number.

6. Recruitment by trade unions : The trade unions also play an important role in recruitment. The recognized trade unions maintained a list of unemployed candidates and they arrange for suitable candidates at the time of recruitment. Reliable candidates may be available by recruitment through trade unions. The trade unions should, on their part, be careful and ensure that no incompetent candidate is recommended by them.

Question 14.
Describe the internal sources of recruitment. What are the advantages of it ?
Answer:
Internal sources of recruitment refers to recruitment from within the enterprise. There are two important internal sources :

1. Promotion : Competent and experienced persons of the enterprises are promoted to higher post on the basis of their qualification and seniority to fill up the vacancy. This system is almost applied by all the enterprise. Some posts where experience is important filling up by promotion only. For e.g. the post of principal in school or college, the post of Vice Chancellor in university.

2. Transfer : It involves the sifting of an employee from one job to another. At the time of transfer it is ensured that the employee to be transferred to the new job is capable of performing the jobs. Transfer becomes essential due to following reasons :

1. To expose the person to variety of jobs.
2. To avoid monotony associated with the execution of a particular job.
3. To penalize employees.
4. A request by employee himself, expressing his desire to work at some other work spot.
5. To accommodate the excess staff at hand.

Advantages : This source of recruitment has certain merits. They are :

1. Knowledge of general rules : Due to service for many years, these employees know the rules and policies of the organization. So, it is not necessary to give them knowledge like a fresh employee. This saves time and money.

2. Morale is increased : Transparent policies help the employees in knowing as to when their promotions fall due and hence they strive hard for it. Thus, their morale increases.

3. Minimum cost : Expenses in this type of recruitment are kept to a minimum, as filling of jobs internally is cheaper as compared to getting candidate from external sources.

4. Increase in efficiency : In this system, all employees know that they will get promotion in future and side by side efficient and dedicated employee will be promoted shortly. With this hope, they work with full interest and dedication. Through this, their efficiency increases.

5. Reduction in training cost: Employees of the organization, know well the working methods and techniques of work. So, they don’t require training for general work. Training is imparted only to update them with the new technologies and working methods.

Question 15.
What is meaning of Training ? What are its chief characteristics ?
Answer:
Meaning of Training : Training is a systematic programme to increase the knowledge, skills, abilities and aptitudes of workers to perform specific jobs. The purpose of training is to achieve a change in the behaviour of those trained and to enable them to do their jobs in a better way. Training is the act of improving or updating the knowledge and skill of an employee for performing a particular job. It is a two-way process because there must be someone to learn and someone to teach. The purpose of training is to mould the behaviour of people so that they can do their jobs in a better way.
Definitions :

1. According to Jucius, “The term training is used here to indicate only process by which the aptitudes, skills and abilities of employees , to perform specific jobs, are increased.”

2. According to Dale, S. Beach, “Training is the organized procedure in which people team knowledge and/or skill for definite purpose.”

3. According to Flippo, “Training is the act of increasing the knowledge and skill of an employee for doing a particular job.”
Characteristics of Training : On the basis of meaning and definitions of training, following are the characteristics :

1. Training is a countinu us process of development of employees.
2. Training is necessary for all the managerial levels.
3. Training is essential for both the old and new employees.
4. Training increases the efficiency of employees.
5. Training and education are different.
6. Training is that expenses incurred on it constitute investment and not wastage.
7. It helps in achieving the objectives of organization.
8. Training provides self satisfaction to employees.
9. All round development of employees is possible through training.

Question 16.
Write the objectives of training.
Answer:

Objectives of training :

1. To make labour force useful: Training familiarises the employee with the object of the organization and work, he has to perform. Workers leam to operate equipments efficiently and increase their utility in the organization.

2. Increasing the efficiency of employees : Workers are acquainted with the real situations of works, its tools, equipments and environment. They have to work pracitically.

3. Familiarity with the working condition : Workers leam to work properly in the real situations of work. Labour force employed in the factory belongs to different parts of the country. They are unfamiliar with each other.

4. To increase in productivity : The objective of training is to complete the work speedily and effectively. If a work is done speedily and effectively in an enterprise than production will increase which will bring profits to enterprise. Training boosts the morale of employees which increase the efficiency of employees. This increases the production and productivity of enterprise.

5. Boosts the morale of employees : Training provides self confidence and develops creativity of employees. Training helps in boosting the morale of employees which creates interest to-words job.

Question 17.
Write the steps of staffing or process of staffing.
Answer:

1. Manpower planning: The first step of staffing process is to estimate manpower requirements. It is ensured that able employees are available in an organization to be placed in right position at the correct time. Manpower planning includes determining the employees to be required in future, which type of qualities are required in employees etc.

2. Recruitment: Edwin B. Fillipo said, explaining the recruitment of labours, “Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.” The need for employees is perennial in organization. Dale S. Beael has defined recruitment in this way, “Recruitment is the development and maintenance of adequate manpower resources. It involves the creation of a pool of available labour from where the organization can draw when it needs additional employees.” In a big organization, a separate branch or personnel department assesses the manpower requirements and recruits them. This department is also called Recruitment Section. It is the second step in the process of staffing.

3. Selection : Selection is the third important step of staffing. Selection involves choosing personnel to fill specific jobs in the organization on the basis of educational qualifications, training, skill, abilities and personality of the persons available for the jobs. The selection process involves screening and testing of candidates who have applied for the jobs in the enterprises. Selection is necessary because some of the candidates who have applied may not be suitable for the jobs in the enterprise. Further, the number of candidates who are suitable for the jobs may be more than the vacant jobs to be filled.Dale Yoder has defined the word ‘selection’ in this way, “Selection is the process in which candidates for employment are divided into two classes : those who are to be offered employment and those who are not.”

4. Placement and Orientation : As per the terms and conditions and date of joining mentioned in the appointment letter, the candidate has to join the duty. From the very date of his joining, he is treated as an employee of that office. This newly appointed employee works with the senior employee. So that he may be well acquainted with the working methods.
Orientation means to acquaint the employees with their work and organization. In order to work as a team new employees are introduced to their subordinates and seniors.

5. Training and Development: In order to increase the efficiency and effectiveness of employees training and development facilities are imparted to the employees. Training benefits both the organization and employees. For different categories of employees suitable method of training should be adopted.

6. Determination of remuneration: The remuneration of selected employees should be determined according to the work performed by them. Remuneration may be paid in the form of wages, salaries, fees, allowances, etc.

7. Performance appraisal: The standards are established by the organization. The performance of employees are compared with the standards set. On the basis of their performance. The wages of employees are determined. Thus performance appraisal is an important activity in staffing process.

8. Promotion and Transfer : Competent and experienced persons of the enterprise are promoted to higher posts and shifting of an employee from one job to another are also
the major steps of staffing process.If the employees do not work according to standards set, they are also demoted from their job. Thus in process of staffing promotion, demotion, transfer, retirement, etc. are also included.

Question 18.
Write the characteristics of staffing.
Answer:
Characteristics :

1. Human nature: Staffing is the work done by man for man. In an enterprise though a certain work may be done by livestock, but staffing involves only recruitment, promotion and development of human being. Thus, staffing is concerned with human nature only.

2. Managerial function : Staffing is exclusively a managerial function. It is also called human resource management. In large organization, there is a separate personnel department for staffing which performs the functions from recruitment to development of personnel. Thus staffing is exclusively a managerial function.

3. Continuous activity : Staffing is a continuous activity. This involves continuous recruitment, placement, promotion, transfer, development etc.

4. A process : Staffing is a process in itself. It is concerned with organization structure and its various plans and policies.

5. Social nature : Staffing is exclusively the function of the society for the society. Management is in itself a social function therefore staffing exists within the society.

6. Recruitment at all levels : Staffing is done at all level stop management, middle management and lower level management. Through the method of recruitment may differ, but this is done at all levels of management.

7. Recruitment at present and future vacancies: With fulfilling the present vacancies, the vacancies likely to arise in future are also determined and the work relating to future vacancies is also completed in advance so that the vacancies may be filled as and when needed.

8. Staffing in broader sense : Staffing involves recruitment, promotion, demotion, retirement, transfer, training development, evaluation. Hence staffing has a broader meaning.

9. Complicated : Staffing work is very complicated because in this we have to face with people, personal pressure and tradition.

10. Policy fixation : In staffing apart from selection of employees policies related with their promotion, transfer, retirement, compensation etc is also framed.

Question 19.
Distinguish between education and training.
Answer:
Generally it is assumed that education and training are same but there are some differences between education and training. They are as follows :

1. Education is imparted according to a specific syllabus while in training the technique of performing work is important.
2. Education is a long term plan which is imparted every year while training is for short period.
3. In education there is a relationship between teacher and student which is a symbol of respect between both of them while in training between experts and trainee and both of them have formal relationship.
4. Education is related to general knowledge while training is related to knowledge of specific work.
5. Education is related with overall development of persons while training is related with the knowledge of specific area for persons.
6. Scope of education is wide while scope of training is narrow.
7. Education is related with school, colleges etc. which training is related with training centres.
8. Cost of education is borne by the person himself or the government while cost of training is borne by employer. .
9. Education is a symbol of increase in knowledge while training is a symbol of performing work artistically.

Question 20.
Write the principles of recruitment or policy of recruitment.
Answer:
Following are the principles of recruitment:

1. Recruitment work is a managerial prerogative : Every function relating to recruitment should be done by the top management, so that no conflict arises in the process of recruitment.

2. Information of vacant post from different departments: Top management should call for the information of vacant posts from different departments from time to time, so that recruitment may be done in accordance with the information.

3. Separate department for recruitment : Recruitment is very important. So, for this, experienced and efficient recruitment personnel should be appointed and a separate department or branch should be opened, which may be defined as a personnel department or recruitment branch.

4. Approval of new posts : If work increases and the need for additional posts is felt, then approval for creation of new posts should be obtained from the employers, as due to the creation of additional posts, economic burden increases.

5. Recruitment work by a competent officer : Employees are the backbone of any business. So, their selection should be made after deep thinking and by a competent officer. Recruitment experts from outside may be invited in case of need.

6. Recruitment as per work: Before recruitment, the nature and kind of work should be kept in mind and recruitment should be done accordingly and a competent and efficient person should be selected. For example, if any work is to be done by hand, then a selection of person, maimed by hand will be void.

7. Without partiality: Recruitment should always be impartial. Discrimination should not be present in the recruitment process.

8. Weight age to qualification : In recruitment, qualification should be taken into mind at first. In qualification, along with educational qualifications, sports, work experience etc.should be given weight age.

9. Suggestions from different sources : It is not wrong to call suggestions from competent and acquainted persons for recruitment and subsequently, selection can be made from these recruiters.

10. Different tests : Different tests such as physical test, intelligence test, work test, nature test etc. should be conducted before recruitment to facilitate selection.

MP Board Class 12 Business Studies Important Questions

In this article, we will share MP Board Class 12th Economics Important Questions Unit 1 व्यष्टि अर्थशास्त्र परिचय Pdf, These solutions are solved subject experts from the latest edition books.

MP Board Class 12th Economics Important Questions Unit 1 व्यष्टि अर्थशास्त्र परिचय

व्यष्टि अर्थशास्त्र परिचय Important Questions

व्यष्टि अर्थशास्त्र परिचय वस्तुनिष्ठ प्रश्न

प्रश्न 1.
सही विकल्प चुनकर लिखिए

प्रश्न (a)
भारतीय अर्थव्यवस्था है –
(a) केन्द्रीकृत योजनाबद्ध अर्थव्यवस्था
(b) बाजार अर्थव्यवस्था
(c) मिश्रित अर्थव्यवस्था
(d) इनमें से कोई नहीं।
उत्तर:
(c) मिश्रित अर्थव्यवस्था

प्रश्न (b)
सबसे पहले ‘माइक्रो’ शब्द का प्रयोग करने वाले अर्थशास्त्री हैं –
(a) मार्शल
(b) बोल्डिंग
(c) कीन्स
(d) रेग्नर फिश
उत्तर:
(d) रेग्नर फिश

प्रश्न (c)
किसने कहा अर्थशास्त्र, धन का विज्ञान है –
(a) प्रो. रॉबिन्स ने
(b) प्रो. जे. के मेहता ने
(c) प्रो. मार्शल ने
(d) प्रो. एडम स्मिथ ने
उत्तर:
(d) प्रो. एडम स्मिथ ने

प्रश्न (d)
उत्पादन सम्भावना वक्र का आकार कैसा होता है –
(a) मूल बिन्दु की ओर अवनतोदर
(b) नतोदर
(c) सीधी रेखा
(d) इनमें से कोई नहीं
उत्तर:
(a) मूल बिन्दु की ओर अवनतोदर

प्रश्न (e)
उत्पादन संभावना वक्र के अवनतोदर आकार का कारण है –
(a) बढ़ती अवसर लागत
(b) घटती अवसर लागत
(c) समान अवसर लागत
(d) ऋणात्मक अवसर लागत
उत्तर:
(b) घटती अवसर लागत

प्रश्न (f)
संसाधनों के पूर्ण उपयोग वाला बिन्दु उत्पादन संभावना वक्र के किस ओर पाया जाता है –
(a) बायीं ओर
(b) दायीं ओर
(c) अन्दर की ओर
(d) ऊपर
उत्तर:
(d) ऊपर

प्रश्न 2.
रिक्त स्थानों की पूर्ति कीजिए –

1. प्रत्येक व्यक्ति के पास …………………………… वस्तुओं की कुछ ही मात्रा होती है।
2. ………………………. में व्यक्तिगत आर्थिक इकाइयों के व्यवहार का अध्ययन किया जाता है।
3. अवसर लागत उत्पादन सूची में ……………. को स्पष्ट करती हैं।
4. व्यष्टि तथा समष्टि अर्थशास्त्र दोनों एक दूसरे के …………….. हैं।
5. आर्थिक वृद्धि का संबंध …………….. अर्थशास्त्र से होता है।
6. अर्थव्यवस्था …………….. इकाइयों का समूह होती है।
7. मिश्रित अर्थव्यवस्था …………….. और …………….. को मिलाकर बनती है।
8. उत्पादित वे वस्तुएँ अथवा सेवाएँ जो अन्य वस्तुओं अथवा सेवाओं के उत्पादन में काम आती हैं …………….. वस्तु कहलाती हैं।

उत्तर:

1. कुछ
2. व्यष्टि अर्थशास्त्र
3. परिवर्तनों
4. पूरक
5. समष्टि
6. उत्पादन
7. समाजवाद, पूँजीवाद
8. मध्यवर्ती.

प्रश्न 3.
सत्य/असत्य का चयन कीजिए –

1. उत्पादन सम्भावना वक्र मूल बिन्दु की ओर उन्नतोदर होता है?
2. कीमत – यंत्र पूँजीवादी अर्थव्यवस्था में केन्द्रीय समस्याओं को हल करता है?
3. अर्थव्यवस्था पूँजीवादी, समाजवादी या अवसरवादी हो सकती है?
4. आजकल विश्व की सभी अर्थव्यवस्थाएँ लगभग मिश्रित अर्थव्यवस्थाएँ हैं?
5. आदर्शात्मक अर्थशास्त्र में यह अध्ययन किया जाता है कि किसी तंत्र को किस प्रकार से कार्य करना चाहिए?
6. समष्टि अर्थशास्त्र में बेरोजगारी, मुद्रास्फीति आदि समस्याओं का अध्ययन किया जाता है?
7. समाजवाद में निजी लाभ की भावना प्रमुख है?

उत्तर:

1. असत्य
2. सत्य
3. असत्य
4. सत्य
5. सत्य
6. सत्य
7. असत्य

प्रश्न 4.
सही जोड़ी बनाइएखण्ड –

1. (c)
2. (d)
3. (a)
4. (e)
5. (b).

प्रश्न 5.
एक शब्द/वाक्य में उत्तर दीजिए –

1. भारत में किस अर्थव्यवस्था को अपनाया गया है?
2. उत्पादन संभावना वक्र मूल बिन्दु की ओर कैसा होता है?
3. शोषण का सरकारीकरण किस अर्थव्यवस्था का दोष है?
4. चुनावों की सूची बनाने वाला वक्र कौन – सा है?
5. वर्ग संघर्ष किस अर्थव्यवस्था की विशेषता है?
6. किस अर्थव्यवस्था में निजी क्षेत्र को सीमित कर दिया जाता है?
7. पूँजीवाद की सभी संस्थाओं का हृदय किसे कहा जाता है?
8. अर्थव्यवस्था की केन्द्रीय समस्याएँ क्या कहलाती हैं?
9. प्राथमिकताओं के आधार पर उत्पादन क्षेत्र एवं उत्पादन की मात्रा का निर्धारण कौन करता है?

उत्तर:

1. मिश्रित अर्थव्यवस्था
2. नतोदर
3. समाजवाद
4. उत्पादन संभावना वक्र
5. पूँजीवाद
6. समाजवादी
7. लाभ को
8. आधारभूत कार्य
9. केन्द्रीय नियोजन सत्ता.

व्यष्टि अर्थशास्त्र परिचय लघु उत्तरीय प्रश्न

प्रश्न 1.
समष्टि अर्थशास्त्र से क्या आशय है? इसकी दो विशेषताएँ लिखिए?
उत्तर:
समष्टि अर्थशास्त्र से आशय:
समष्टि अर्थशास्त्र, आर्थिक ज्ञान की वह शाखा है, जो संपूर्ण अर्थव्यवस्था एवं अर्थव्यवस्था से संबंधित बड़े योगों व औसतों का, उनके व्यवहार एवं पारस्परिक संबंधों का अध्ययन करती है। समष्टि अर्थशास्त्र की विशेषताएँ – समष्टि अर्थशास्त्र की निम्नलिखित दो विशेषताएँ हैं –

1. समष्टि अर्थशास्त्र की धारणा विस्तृत:
समष्टि अर्थशास्त्र की धारणा विस्तृत है। इसमें छोटी इकाइयों को महत्व नहीं दिया जाता, बल्कि इसकी सहायता से राष्ट्रीय एवं अंतर्राष्ट्रीय समस्या का हल निकाला जाता है। अतः समष्टि अर्थशास्त्र प्रावैगिक अर्थव्यवस्था को महत्व देता है।

2. विस्तृत विश्लेषण:
समष्टि अर्थशास्त्र में विस्तृत विश्लेषण को सर्वाधिक महत्व दिया जाता है। उदाहरण के लिए, समष्टि अर्थशास्त्र में सरकार की मौद्रिक एवं राजस्व की नीतियों का अध्ययन किया जाता है जो कि सामान्य प्रभावों को स्पष्ट करता है तथा इस तथ्य को नजर अंदाज कर दिया जाता है कि इन नीतियों का व्यक्तियों अथवा उद्योगों पर क्या प्रभाव पड़ेगा? यदि सार्वजनिक आय तथा सार्वजनिक व्यय का परस्पर प्रभाव समाज पर अच्छा पड़ रहा है, तो निष्कर्ष के रूप में यह कहा जा सकता है कि समाज में रहने वाले व्यक्ति पर इसका अच्छा प्रभाव पड़ेगा।

प्रश्न 2.
समष्टि अर्थशास्त्र के प्रकारों को स्पष्ट कीजिए?
उत्तर:
समष्टि अर्थशास्त्र के प्रमुख प्रकार निम्नलिखित हैं –

1. समष्टि आर्थिक स्थैतिकी:
समष्टि अर्थशास्त्र के अंतर्गत संपूर्ण अर्थव्यवस्था का अध्ययन किया जाता है; लेकिन समष्टि आर्थिक विश्लेषण इस तथ्य का विश्लेषण नहीं करता कि अर्थव्यवस्था संतुलन के बिन्दु पर किस प्रकार पहुँचती है। समष्टि स्थैतिक में जिस अंतिम संतुलन का अध्ययन किया जाता है, उसे प्रो. कीन्स के अनुसार, निम्नलिखित समीकरण की सहायता से स्पष्ट किया जा सकता है Y = C + I यहाँ, Y = कुल आय, C = कुल उपभोग व्यय एवं I = कुल विनियोग व्यय है।

2. तुलनात्मक समष्टि आर्थिक स्थैतिकी:
इसके अंतर्गत स्थैतिकी रीति द्वारा प्रावैगिक प्रक्रिया का अध्ययन किया जाता है। एक अर्थव्यवस्था के विभिन्न ‘समष्टि चर’ जैसे – कुल आय एवं कुल रोजगार आदि परिवर्तित होते रहते हैं। इसके परिणामस्वरूप अर्थव्यवस्था के साम्य बिन्दु भी परिवर्तित होते रहते हैं।

3. समष्टि आर्थिक प्रावैगिकी:
आर्थिक विश्लेषण की यह नवीनतम प्रणाली है। इसके अंतर्गत एक साम्य से दूसरे साम्य तक पहुँचने की संपूर्ण प्रक्रिया का अध्ययन किया जाता है। हालाँकि उच्च गणितीय प्रयोग के कारण यह जटिल प्रणाली है, किन्तु यह संपूर्ण अर्थव्यवस्था के प्रावैगिक चित्र को यथार्थ रूप में प्रस्तुत करती है।

प्रश्न 3.
आर्थिक समस्या क्या है? यह क्यों उत्पन्न होती है?
उत्तर:
अर्थव्यवस्था की आर्थिक समस्याओं का संबंध आबंटन की समस्या से है। साधन सीमित हैं एवं आवश्यकताएँ असीमित, यही कारण है कि दुर्लभ संसाधनों के उपयोगों में चुनाव की समस्या जन्म लेती है जिसमें साधनों के वैकल्पिक उपयोग से संसाधनों का कुशलतम एवं अधिकतम उपयोग किया जा सके आर्थिक समस्याएँ इसलिए उत्पन्न होती हैं क्योंकि प्रो. रॉबिन्स के अनुसार, मानव की इच्छाएँ एवं आवश्यकताएँ अनंत एवं असीमित होती हैं।

सभी आवश्यकताएँ पूर्ण हो जायें यह भी संभव नहीं होता है। इन आवश्यकताओं की पूर्ति के साधन अर्थात् धन सीमित होता है। इसीलिए साधनों के वैकल्पिक उपयोग किए जाते हैं ताकि इनका कुशलतम उपयोग किया जा सके। अतएव दुर्लभ साधनों का कुशलतम एवं सर्वोत्तम उपयोग करना आवश्यक है क्योंकि संसाधनों की दुर्लभता आर्थिक समस्या को जन्म देती है।

प्रश्न 4.
‘दुर्लभता ही केन्द्रीय समस्याओं की जननी है’, स्पष्ट कीजिए?
उत्तर:
यह कथन अक्षरशः
सही है कि साधनों की दुर्लभता है परन्तु इन दुर्लभ साधनों में से किनका चयन किया जाए यह समस्या जन्म लेती है। दुर्लभता ही चयन की समस्या का मूल कारण है। ये संसाधन दुर्लभ हैं परन्तु इनका वैकल्पिक उपयोग किया जा सकता है। इन संसाधनों से अधिकतम संतुष्टि प्राप्त करने के लिए व्यक्ति एवं समाज को संसाधनों के प्रयोग का चयन करना पड़ता है। इसीलिए ऐसा कहा जाता है कि दुर्लभता ही केन्द्रीय समस्याओं की जननी है।

प्रश्न 5.
सकारात्मक आर्थिक विश्लेषण क्या है? समझाइये?
उत्तर:
इस आर्थिक विश्लेषण के अन्तर्गत यह देखा जाता है कि मूल्य एवं माँग के सिद्धान्त के व्यवहार में क्रियाशीलता दिखाई दे रही है या नहीं अर्थात् मूल्य के बढ़ने से माँग की मात्रा कम हो रही है या नहीं तथा मूल्य के घटने से माँग की मात्रा में वृद्धि होती है या नहीं। यही सकारात्मक आर्थिक विश्लेषण कहलाता है।

प्रश्न 6.
आदर्शात्मक आर्थिक विश्लेषण से आप क्या समझते हैं?
उत्तर:
इस आर्थिक विश्लेषण में यह देखा जाता है कि जिन विधियों एवं तकनीकों का प्रयोग किया जाता है उसका प्रभाव समाज या अर्थव्यवस्था पर अच्छा पड़ रहा है या बुरा । उदाहरण के लिए, मादक पदार्थों की माँग को समाज हित में कम करने के लिए इन वस्तुओं पर करारोपण अधिक किया जा सकता है। आदर्शात्मक आर्थिक विश्लेषण सत्य – असत्य, उचित – अनुचित पर आधारित होता है।

प्रश्न 7.
उत्पादन संभावना वक्र की मान्यताएँ लिखिए?
उत्तर:
उत्पादन संभावना वक्र की प्रमुख मान्यताएँ निम्न प्रकार है –

1. अर्थव्यवस्था में उपलब्ध संसाधनों की मात्रा निश्चित होती है।
2. संसाधनों का पूर्ण एवं कुशलतम प्रयोग आवश्यक है।
3. उत्पादन की तकनीक अर्थव्यवस्था में दी हुई होती है।
4. अर्थव्यवस्था में केवल दो वस्तुओं का ही उत्पादन हो रहा है ऐसा यह नियम मानता है।
5. उपलब्ध संसाधनों की कुशलता सभी वस्तुओं के उत्पादन में एक समान नहीं होती है।

प्रश्न 8.
अर्थव्यवस्था की उत्पादन संभावनाओं से आपका क्या अभिप्राय है?
उत्तर:
किसी अर्थव्यवस्था में आवश्यकता के अनुरूप एवं उपलब्ध संसाधनों के आधार पर संयोगों को निर्धारित करना होता है। जिन दो वस्तुओं के संयोग को चुना जाता है वही अर्थव्यवस्था के उत्पादन की संभावनाएँ कहलाती हैं। यह उत्पादन संभावना वक्र से निर्धारित की जाती है।

प्रश्न 9.
सीमान्त उत्पादन संभावना किसे कहते हैं?
उत्तर:
सीमान्त उत्पादन संभावना से अभिप्राय उस लागत से है जो एक अतिरिक्त इकाई उत्पादित करने की अवसर लागत है। अंतिम वस्तु की लागत की संभावना सीमान्त कहलाती है।

प्रश्न 10.
किसी विद्यालय में कार्यरत् शिक्षक विश्वविद्यालय से डॉक्टर ऑफ फिलॉसफी की उपाधि प्राप्त करने के लिए दो वर्षों के अध्ययन अवकाश पर जाता है। उस शिक्षक की मासिक आय ₹35,200 है। शोध उपाधि शुल्क ₹40,000 है। उस शिक्षक की डॉक्टरेट डिग्री प्राप्त करने की अवसर लागत क्या होगी?
उत्तर:
अवसर लागत = (35,200  x  12  x  2) + 40,000 = (35,200 x 24) + 40,000 = ₹ 8,84,800

प्रश्न 11.
उत्पादन संभावना वक्र नीचे की ओर ढाल क्यों होता है?
उत्तर:
किसी अर्थव्यवस्था में पूर्ण रोजगार की दशा में संसाधनों का कुशलतम उपयोग किसी एक वस्तु के उत्पादन की मात्रा को बढ़ाता है तो दूसरी वस्तु की उत्पादन मात्रा को कम करता. है। जब अर्थव्यवस्था के सभी संसाधनों का कुशलतम एवं पूर्ण उपयोग किया जा रहा हो तो दोनों वस्तुओं के उत्पादन में एक साथ वृद्धि करना संभव नहीं होता है। एक वस्तु के उत्पादन की मात्रा को घटाकर ही दूसरी वस्तु के उत्पादन में वृद्धि की जा सकती है। यही कारण है कि उत्पादन संभावना वक्र का झुकाव बाएँ से दाहिने ओर ढाल होता है। यह इस चित्र से और अधिक स्पष्ट किया जा सकता है।

प्रश्न 12.
उत्पादन संभावना वक्र नतोदर क्यों होता है?
उत्तर:
सामान्यतया उत्पादन संभावना वक्र मूल बिन्दु के नतोदर होता है। यह स्थिति उसके ढलान बढ़ने के कारण निर्मित होती है। ढलान के बढ़ने का अर्थ है सीमांत अवसर लागत में वृद्धि। जैसे – जैसे संसाधनों को एक वस्तु के उत्पादन से दूसरे वस्तु के उत्पादन में स्थानांतरित किया जाता है। इसकी वजह से Y वस्तु के उत्पादन को हानि के रूप में X वस्तु की प्रत्येक अतिरिक्त इकाई के उत्पादन की अवसर लागत में वृद्धि की प्रवृत्ति होती है। ऐसा इस कारण होता है कि संसाधनों का प्रयोग विशिष्ट तौर पर ही किया जा सकता है।

उदाहरण के लिए, यदि किसी राज्य में आम की उत्पादकता अधिक होती है तो जरूरी नहीं कि किसी अन्य राज्य में भी आम की खेती अधिक हो। हो सकता है दूसरे राज्य में Y, गन्ने की खेती एवं उसका उत्पादन अधिक हो। अत: यह आवश्यक नहीं है कि जो AY व्यक्ति चावल उत्पादन में सक्षम हो वह व्यक्ति मशीन उत्पादन में भी निपुण होगा।

चित्र से स्पष्ट हो रहा है कि प्रत्येक स्तर पर सीमांत अवसर लागत या बढ़ती रूपांतरण की सीमांत दर अर्थात् \(\frac { \triangle Y }{ \triangle X } \) लगातार बढ़ रही है। यही कारण है कि बढ़ती हुई सीमांत अवसर लागत की वजह से उत्पादन संभावना वक्र मूल बिन्दु के नतोदर होता है।

प्रश्न 13.
अर्थशास्त्र में किस वस्तु का अध्ययन किया जाता है?
उत्तर:
किसी अर्थव्यवस्था में विषय-वस्तु क्या हो यह अत्यंत महत्वपूर्ण प्रश्न है। वास्तव में यह विषयवस्तु इतनी अधिक व्यापक होती है कि अर्थव्यवस्था को यह निर्णय करना होता है कि उपलब्ध संसाधनों का अधिकतम एवं कुशलतम उपयोग हो। दुर्लभ संसाधनों का विवेकपूर्ण उपयोग पर आधारित होता है किसी अर्थव्यवस्था का अध्ययन। किसी भी अर्थव्यवस्था का अंतिम लक्ष्य अधिकतम आर्थिक कल्याण होता है। किसी भी अर्थव्यवस्था में जिन आर्थिक प्रणालियों के द्वारा अध्ययन किया जाता है वे व्यष्टि एवं समष्टि पर आधारित होती हैं।

व्यष्टि अर्थशास्त्र के अंतर्गत उपभोक्ता सिद्धान्त, उत्पादक व्यवहार सिद्धान्त, कीमत निर्धारण, कल्याणकारी अर्थशास्त्र तथा समष्टि अर्थशास्त्र के अंतर्गत राष्ट्रीय आय तथा रोजगार, राजकोषीय और मौद्रिक नीतियाँ, मुद्रास्फीति एवं अपस्फीति, सरकारी बजट, विनिमय दर एवं भुगतान संतुलन का अध्ययन किया जाता है।

व्यष्टि अर्थशास्त्र परिचय दीर्घ उत्तरीय प्रश्न

प्रश्न 1.
व्यष्टि एवं समष्टि अर्थशास्त्र में अंतर स्पष्ट कीजिए?
उत्तर:
व्यष्टि एवं समष्टि अर्थशास्त्र में अंतर:

प्रश्न 2.
व्यष्टि अर्थशास्त्र का अर्थ बताते हुए इसकी विशेषताएँ लिखिए?
उत्तर:
व्यष्टि अर्थशास्त्र का अर्थ:
व्यष्टि अर्थशास्त्र अंग्रेजी भाषा के शब्द ‘माइक्रो’ (micro), ग्रीक भाषा के शब्द ‘माइक्रोस’ (micros) का हिन्दी रूपान्तरण है। व्यष्टि से अभिप्राय है – अत्यंत छोटी इकाई, दस लाखवाँ भाग, अर्थात व्यष्टि अर्थशास्त्र का संबंध अध्ययन की सबसे छोटी इकाई से है।

इस प्रकार, व्यष्टि अर्थशास्त्र के अंतर्गत वैयक्तिक इकाइयों जैसे – व्यक्ति, परिवार, उत्पादक फर्म उद्योग आदि का अध्ययन किया जाता है। प्रो. चेम्बरलिन के अनुसार, “व्यष्टि अर्थशास्त्र पूर्णरूप से व्यक्तिगत व्याख्या पर आधारित है और इसका संबंध अंतर – वैयक्तिक संबंधों से भी होता है।” व्यष्टि अर्थशास्त्र की विशेषताएँ:

व्यष्टि अर्थशास्त्र की निम्नलिखित विशेषताएँ हैं –

1. वैयक्तिक इकाइयों का अध्ययन:
व्यष्टि अर्थशास्त्र में वैयक्तिक इकाइयों का ही अध्ययन किया जाता है। व्यष्टि अर्थशास्त्र वैयक्तिक आय, वैयक्तिक उत्पादन एवं वैयक्तिक उपभोग आदि की व्याख्या करने में सहायता करता है। यह प्रणाली अपना संबंध समूहों से न रखकर इकाइयों से रखती है। इस प्रकार व्यष्टि अर्थशास्त्र वैयक्तिक समस्याओं का अध्ययन करते हुए समस्त अर्थव्यवस्था के विश्लेषण में सहायता प्रदान करता है।

2. सूक्ष्म चरों का अध्ययन:
सूक्ष्म अर्थशास्त्र की दूसरी विशेषता के रूप में यह छोटे – छोटे चरों का अध्ययन करती है। इसके चरों का प्रभाव इतना कम है कि इसके परिवर्तनों का प्रभाव संपूर्ण अर्थव्यवस्था पर नहीं पड़ता है। उदाहरण के लिए – एक उपभोक्ता अपने उपभोग, एक उत्पादक अपने उत्पादन से संपूर्ण अर्थव्यवस्था की माँग पूर्ति को प्रभावित नहीं कर सकता है।

3. व्यक्तिगत मूल्य का निर्धारण:
व्यष्टि अर्थशास्त्र को कीमत सिद्धांत अथवा मूल्य सिद्धांत के नाम से भी जाना जाता है। इसके अंतर्गत वस्तु की माँग एवं पूर्ति की घटनाओं का अध्ययन किया जाता है। इसके साथ-साथ माँग एवं पूर्ति के द्वारा विभिन्न वस्तुओं के व्यक्तिगत मूल्य – निर्धारण भी किये जाते हैं।

4. पूर्ण रोजगार की मान्यता पर आधारित:
व्यष्टि अर्थशास्त्र पूर्ण रोजगार की मान्यता को लेकर चलता है।

प्रश्न 3.
सूक्ष्म अर्थशास्त्र (व्यष्टि अर्थशास्त्र) के पाँच महत्व बताइए?
उत्तर:
सूक्ष्म अर्थशास्त्र के महत्व निम्नलिखित हैं –

1. संपूर्ण अर्थव्यवस्था के लिए आवश्यक:
यदि हम संपूर्ण अर्थव्यवस्था के स्वरूप की जानकारी प्राप्त करना चाहते हैं तो हमें व्यक्तिगत इकाइयों की जानकारी हासिल करना आवश्यक है, क्योंकि व्यक्तिगत माँग, व्यक्तिगत उत्पादन के संयोग से ही सामूहिक माँग और सामूहिक पूर्ति से संबंधित जानकारी हासिल की जा सकती है।

जैसे कि सूती वस्त्र उद्योग की क्या स्थिति है, इससे संबंधित जानकारी ज्ञात करनी है तो हमें सबसे पहले सूती वस्त्र की फर्मों की जानकारी हासिल करनी होगी तभी हमें सती वस्त्र उद्योग की स्थिति के बारे में जानकारी मिलेगी। इस प्रकार व्यष्टि अर्थशास्त्र की सहायता से समष्टि अर्थशास्त्र की समस्याओं का अध्ययन किया जाता है।

2. आर्थिक समस्याओं के निर्णय में सहायक:
व्यष्टि अर्थशास्त्र आर्थिक समस्याओं के निर्णय में सहायक होता है। आर्थिक समस्याओं में मूल्य निर्धारण एवं वितरण की समस्या प्रमुख होती है। उत्पत्ति का प्रत्येक साधन अधिकाधिक पारिश्रमिक प्राप्त करना चाहता है। इसी तरह वस्तु के मूल्य निर्धारण की समस्या भी है। इन समस्त समस्याओं के निर्णय के लिए व्यष्टि अर्थशास्त्र उपयोगी रहा है।

3. आर्थिक नीति के निर्धारण में सहायक:
व्यष्टि अर्थशास्त्र का आर्थिक नीतियों के निर्धारण में महत्वपूर्ण स्थान है। व्यष्टि अर्थशास्त्र के अंतर्गत सरकार की आर्थिक नीतियों का अध्ययन इस आधार पर किया जाता है, कि उनका व्यक्तिगत इकाइयों के कार्यकरण पर कैसा प्रभाव पड़ता है।

4. आर्थिक कल्याण की पूर्ति का निरीक्षण:
व्यष्टि अर्थशास्त्र में जहाँ व्यक्तिगत उपभोग, व्यक्तिगत रहन-सहन के स्तर की जानकारी प्राप्त की जाती है, वहीं सार्वजनिक व्यय एवं सार्वजनिक आय के प्रभावों की भी जानकारी प्राप्त की जाती है।

5. व्यक्तिगत इकाइयों के आर्थिक निर्णय में सहायक:
व्यष्टि अर्थशास्त्र, व्यक्तिगत इकाइयों (जैसेफर्म, परिवार, व्यक्तिगत आय, व्यक्तिगत बचत आदि) की समस्याओं पर उचित निर्णय लेने में सहायता प्रदान करता है।

प्रश्न 4.
व्यापक अर्थशास्त्र की क्या सीमाएँ हैं? अथवा समष्टि अर्थशास्त्र के दोष लिखिए?
उत्तर:
समष्टि अर्थशास्त्र की सीमाएँ या दोष निम्नानुसार हैं –

1. समूह की संरचना को महत्व न देना:
समष्टि अर्थशास्त्र के अन्तर्गत, समूह के आकार – प्रकार का ही अध्ययन किया जाता है, न कि समूह की संरचना का। अत: समूह के आधार पर भविष्यवाणियाँ करना अथवा सुझाव देना, तब तक सही नहीं है जब तक समूह की बनावट एवं उसके अंगों के स्वभाव तथा परस्पर सम्बन्ध की समस्त जानकारी हासिल न कर ली जाये।

2. वैयक्तिक इकाई महत्वहीन:
समष्टि अर्थशास्त्र के अन्तर्गत, वैयक्तिक इकाइयों की तलना में सम्पूर्ण अर्थव्यवस्था का अध्ययन किया जाता है लेकिन ऐसा करने से एक दोष उत्पन्न हो जाता है कि जिन छोटी-छोटी आर्थिक इकाइयों के योग से सम्पूर्ण अर्थव्यवस्था की दीवार खड़ी की गयी है, उनके महत्व एवं अस्तित्व की उपेक्षा कर दी जाती है जो सर्वथा अनुचित है।

3. निष्कर्षों का व्यावहारिक न होना:
समष्टि अर्थशास्त्र में सम्पूर्ण मात्राओं का अध्ययन किया जाता है, लेकिन समूह के आर्थिक विश्लेषण के आधार पर निर्मित नीतियाँ कभी – कभी गलत परिणाम दे देती हैं।

4. समूह की इकाइयाँ, वैयक्तिक इकाइयों का सही प्रतिनिधित्व नहीं कर सकती हैं:
समष्टि अर्थशास्त्र की अंतिम सीमा यह है कि समूह की इकाइयाँ वैयक्तिक इकाइयों का सही प्रतिनिधित्व नहीं कर सकती हैं।

5. जटिल विश्लेषण:
सैद्धांतिक दृष्टिकोण से समष्टि आर्थिक विश्लेषण सरल लगता है किन्तु व्यावहारिक दृष्टिकोण से यह विश्लेषण बहुत जटिल होता है। सम्पूर्ण अर्थव्यवस्था के समूहों अथवा योगों का अध्ययन एवं विश्लेषण बहुत जटिल कार्य होता है।

प्रश्न 5.
समष्टि अर्थशास्त्र के महत्व के कोई पाँच बिन्दु स्पष्ट कीजिए?
अथवा
समष्टि अर्थशास्त्र के कोई पाँच गुण लिखिए?
उत्तर:
समष्टि अर्थशास्त्र के महत्व या गुण निम्नानुसार हैं –

1. जटिल समस्याओं के अध्ययन में सहायक:
आधुनिक अर्थव्यवस्था अत्यन्त जटिल है। अनेक आर्थिक तत्व एक-दूसरे पर आश्रित रहते हैं। समष्टि अर्थशास्त्र के विश्लेषण की सहायता से पूर्ण रोजगार, व्यापार चक्र आदि जटिल समस्याओं का अध्ययन हो जाता है।

2. आर्थिक नीतियों के निर्माण में सहायक:
सरकार का प्रमुख कार्य कुल रोजगार, कुल आय, कीमत स्तर, व्यापार के सामान्य स्तर आदि पर नियंत्रण करना होता है। समष्टि अर्थशास्त्र सरकार को आर्थिक नीतियों के निर्माण में सहायता पहँचाता है।

3. व्यष्टि अर्थशास्त्र के अध्ययन में सहायक:
समष्टि अर्थशास्त्र का अध्ययन व्यष्टि अर्थशास्त्र के अध्ययन में सहायक है क्योंकि व्यक्तिगत इकाइयाँ अपने विश्लेषण में समष्टि अर्थशास्त्र की सहायता लेती हैं।

4. आर्थिक विकास का अध्ययन:
समष्टि अर्थशास्त्र के अन्तर्गत अर्थव्यवस्था के आर्थिक विकास के संसाधनों एवं क्षमताओं का मूल्यांकन किया जाता है। राष्ट्रीय आय उत्पादन एवं रोजगार के स्तर में वृद्धि करने के लिए योजनाएँ बनायी तथा कार्यान्वित की जाती हैं ताकि अर्थव्यवस्था का बहुमुखी विकास हो सके।

5. मुद्रा – मूल्य के निर्धारण में सहायक:
मुद्रा के मूल्य निर्धारण के सिद्धान्त की व्याख्या समष्टि अर्थशास्त्र में ही की जाती है क्योंकि इसमें मुद्रा – मूल्य के परिवर्तनों के सम्पूर्ण समाज पर पड़ने वाले प्रभावों की व्याख्या की जाती है।

प्रश्न 6.
व्यष्टि अर्थशास्त्र की कोई पाँच सीमाएँ लिखिए?
अथवा
व्यष्टि अर्थशास्त्र के पाँच दोष लिखिए?
उत्तर:
व्यष्टि अर्थशास्त्र की सीमाएँ या दोष निम्नानुसार हैं –

1. केवल व्यक्तिगत इकाइयों का अध्ययन:
व्यष्टि अर्थशास्त्र में केवल व्यक्तिगत इकाइयों का ही अध्ययन किया जाता है। इस विश्लेषण में राष्ट्रीय अथवा विश्वव्यापी अर्थव्यवस्था का सही – सही ज्ञान प्राप्त नहीं हो पाता।

2. अवास्तविक मान्यताएँ:
व्यष्टि अर्थशास्त्र अवास्तविक मान्यताओं जैसे – पूर्ण रोजगार, पूर्ण प्रतियोगिता व दीर्घकाल पर आधारित है। इसलिए काल्पनिक भी कहा जाता है।

3. व्यष्टि निष्कर्ष समग्र अर्थव्यवस्था के लिए अनुपयुक्त:
व्यष्टि अर्थशास्त्र व्यक्तिगत इकाइयों के अध्ययन के आधार पर निर्णय लेता है, लेकिन व्यवहार में कुछ धारणाएँ ऐसी होती हैं जिन्हें समूहों पर लागू करने से गलत निष्कर्ष निकलता है।

4. संकुचित अध्ययन:
कुछ आर्थिक समस्याएँ ऐसी होती हैं जिसका अध्ययन व्यष्टि अर्थशास्त्र में नहीं हो सकता है, जैसे – मौद्रिक नीति, राष्ट्रीय आय, रोजगार, राजकीय नीति, विदेशी विनिमय आदि।

5. अव्यावहारिक:
व्यष्टि अर्थशास्त्र के अधिकांश नियम एवं सिद्धान्त पूर्ण रोजगार की मान्यता पर आधारित है, लेकिन जब पूर्ण रोजगार की मान्यता ही अव्यावहारिक है, तो इस पर बने समस्त नियम एवं सिद्धान्त भी अव्यावहारिक ही कहे जायेंगे।

प्रश्न 7.
अवसर लागत क्या है? उदाहरण सहित समझाइये?
उत्तर:
अवसर लागत दो अवसरों में दूसरे अवसर की हानि के रूप में पहले अवसर का लाभ उठाने की लागत है। अवसर लागत वास्तव में किसी साधन के उसके दूसरे सर्वश्रेष्ठ प्रयोग मूल्य को कहा जाता है। उदाहरण के लिए, एक ड्राइवर ट्रक भी चला सकता है एवं कार भी चला सकता है। इनमें से वर्तमान ट्रक ड्राइवर को बनाए रखने के लिए यदि वह कार ड्राइवरी की नौकरी का परित्याग करता है तो इसे अवसर लागत कहते हैं। वास्तव में अवसर लागत, साधन लागत के ऊपर एक बचत है।

एक अन्य उदाहरण के अनुसार, हाई स्कूल परीक्षा पास करने के बाद कक्षा 11वीं में विषय चयन के समय वाणिज्य विषय को चुनता है तो विज्ञान तथा कला विषयों का उसे त्याग करना पड़ेगा। यहाँ पर विज्ञान तथा कला विषय, वाणिज्य विषय चुनने की अवसर लागत है।

एक अन्य उदाहरणानुसार, एक उच्च शिक्षित व्यक्ति एम.कॉम. उत्तीर्ण करने के बाद शिक्षक बनकर ₹ 50,000, पुस्तकों का लेखन कार्य करके ₹ 60,000 एवं अर्थशास्त्री बनकर ₹ 80,000 अर्जित कर सकता है। यदि वह अर्थशास्त्री बनना चाहता है तो उसे शिक्षक बनने के अवसर का परित्याग करना पड़ेगा। उसकी अवसर लागत ₹ 60,000 है क्योंकि यही दूसरा सर्वश्रेष्ठ विकल्प उसके पास उपलब्ध है। उदाहरण के लिए, विद्यार्थी का C.A. के लिए बी.कॉम. छोड़ना।

प्रश्न 8.
उत्पादन संभावना वक्र क्या है? एक उदाहरण देकर समझाइए?
उत्तर:
दो वस्तुओं के उन सभी संभव संयोगों को जिनका उपयोग किसी अर्थव्यवस्था में उपलब्ध तकनीक एवं संसाधनों के पूर्ण एवं कुशलतम उपयोग पर निर्भर करता है, उत्पादन संभावना वक्र कहलाता है। उदाहरणसीमित संसाधनों एवं उपलब्ध तकनीकों के आधार पर काल्पनिक उदाहरण द्वारा उत्पादन संभावना को प्रदर्शित किया जा सकता है।

संसाधनों की सीमितता के कारण अर्थव्यवस्था में संसाधनों का पूर्ण उपयोग तभी संभव है जब एक वस्तु का उत्पादन बढ़ाने के लिए दूसरी वस्तु का उत्पादन कम किया जाए। सारणी से स्पष्ट है कि यदि मशीनों का उत्पादन शून्य है तो चावल का उत्पादन 500 टन होगा।

जैसे ही मशीनों का उत्पादन 1 से बढ़कर 2 किया जाएगा। चावल का उत्पादन 500 टन से घटाकर 450 टन हो जाएगा। यदि सभी संसाधनों को मशीनों के उत्पादन पर लगा दिया जाय तो इससे मशीनों का उत्पादन तो 4 हो जाएगा किन्तु चावल का उत्पादन शून्य हो जाएगा। अत: उचित संयोग बनाकर उत्पादन किया जाता है।

प्रश्न 9.
सीमान्त अवसर लागत से आप क्या समझते हैं? एक काल्पनिक अनुसूची की सहायता से समझाइये?
उत्तर:
सीमान्त अवसर लागत का आशय X एवं Y वस्तुओं में X की प्रत्येक अतिरिक्त इकाई के लिए Y वस्तु के उत्पादन का परित्याग है। सीमान्त अवसर लागत को रूपान्तरण की सीमान्त दर भी कहा जाता है। बीजगणितीय समीकरण की सहायता से इसे निम्न प्रकार स्पष्ट किया जा सकता है –
सीमान्त अवसर लागत = \(\frac { -\triangle Y }{ \triangle X } \)
यहाँ पर,
∆Y = वस्तु के उत्पादन में वृद्धि
∆X = X वस्तु के उत्पादन में वृद्धि
उपर्युक्त को निम्न अनुसूची से अधिक स्पष्ट किया जा सकता है:

उपर्युक्त अनुसूची से स्पष्ट है कि A से B पर जाने के लिए उसे वस्तु ‘ख’ की पाँचों इकाइयों का परित्याग करके वस्तु ‘क’ की एक इकाई उत्पादित करनी पड़ रही है। इसी प्रकार B से C जाने के लिए उसे वस्तु “ख” की दस इकाइयों का परित्याग करके “क” वस्तु की एक इकाई का उत्पादन करना पड़ेगा। संयोग E के पश्चात Fतक पहुँचने के लिए यह दर 25:0 हो गई है। इससे सिद्ध होता है कि उत्पादन संभावना वक्र को रूपांतरण वक्र या सीमान्त अवसर लागत या रूपांतरण की सीमान्त दर भी कहा जा सकता है।

प्रश्न 10.
“व्यष्टि एवं समष्टि अर्थशास्त्र एक – दूसरे के प्रतियोगी नहीं बल्कि पूरक हैं।” इस कथन को तर्क देकर सिद्ध कीजिए?
उत्तर:
व्यष्टि एवं समष्टि अर्थशास्त्र एक – दूसरे के पूरक हैं, क्योंकि:

(I) समष्टि आर्थिक विश्लेषण में व्यष्टि आर्थिक विश्लेषण की आवश्यकता:
समष्टि आर्थिक विश्लेषण के लिए व्यष्टि आर्थिक विश्लेषण अतिआवश्यक है क्योंकि

1. सम्पूर्ण अर्थव्यवस्था का अध्ययन करने के लिए उसके संबंध में नीति का निर्धारण करने के लिए हमें व्यक्तिगत इकाइयों का विश्लेषण करना पड़ता है। जब तक व्यक्तिगत इकाइयों के बारे में सही – सही जानकारी प्राप्त नहीं होती है, तब तक समष्टि आर्थिक विश्लेषण सही नहीं हो सकते।

2. यदि समाज में रहने वाले लोगों द्वारा अधिकाधिक वस्तुओं की माँग की जाती है तो यह समझा जाता है कि फर्म माँग बढ़ने के कारण उत्पादन बढ़ायेगी, किन्तु जिन फर्मों की उत्पादन लागत में वृद्धि हो रही हो, उन फर्मों के लिए अधिक कीमत पर भी उत्पादन में वृद्धि करना संभव नहीं होगा।

3. सम्पूर्ण अर्थव्यवस्था की सामान्य प्रवृत्ति की सही-सही जानकारी तभी प्राप्त हो सकती है जब हमें तथ्यों एवं सिद्धान्तों का ज्ञान हो।

(II) व्यष्टि आर्थिक विश्लेषण में समष्टि आर्थिक विश्लेषण की आवश्यकता:
व्यष्टि आर्थिक विश्लेषण के लिए समष्टि आर्थिक विश्लेषण अति आवश्यक है क्योंकि:

1. किसी भी फर्म को अपने उत्पादन की मात्रा निश्चित करते समय समाज की सम्पूर्ण माँग, समाज की क्रयशक्ति, रोजगार स्तर एवं आय के स्तर जैसी बातों को ध्यान में रखना पड़ता है।
2. कोई फर्म कितना माल विक्रय कर सकेगी, यह इस बात पर निर्भर करेगा कि समाज में लोगों की क्रयशक्ति कितनी है।
3. प्रायः एक व्यक्तिगत उत्पादन के उत्पत्ति के साधनों की मजदूरी का निर्धारण व्यष्टि अर्थशास्त्र के अन्तर्गत किया जाना चाहिए, किन्तु व्यवहार में ऐसा नहीं होता। इसके लिए अन्य संबंधित तथ्यों को अध्ययन करना आवश्यक होगा।

प्रश्न 11.
एक अर्थव्यवस्था में बेरोजगारी के कारण उत्पादन, क्षमता से कम हो रहा है। सरकार रोजगारोन्मुखी योजनाएँ प्रारंभ करती है। उत्पादन संभावना वक्र की सहायता से इसके प्रभाव की व्याख्या कीजिए?
उत्तर:
सरकार द्वारा रोजगारोन्मुखी योजनाएँ प्रारंभ करने के पूर्व अर्थव्यवस्था उत्पादन संभावना वक्र से नीचे थी। सरकारी योजनाओं के लागू होने के बाद यदि श्रमिकों को रोजगार उपलब्ध कराया जाता है और मजदूरों को X वस्तु के उत्पादन में लगाया जाता है तो उत्पादन संभावना वक्र चित्रानुसार U से A की ओर जायेगा।

परन्तु यदि इन्हीं श्रमिकों को Y वस्तु के उत्पादन पर लगाया जाता है तो यही वक्र U से B पर चला जाएगा। अब सरकार दोनों वस्तुओं के उत्पादन पर श्रमिकों को कार्य पर लगाती है तो उत्पादन संभावना वक्र A से B के मध्य दिखाई – देगा जैसा कि चित्र में बिन्दु C को दर्शाया गया है।

प्रश्न 12.
समष्टि अर्थशास्त्र की विषय-सामग्री को समझाइये?
अथवा
समष्टि अर्थशास्त्र के क्षेत्रों का वर्णन कीजिए?
उत्तर:
समष्टि अर्थशास्त्र की विषय सामग्री-इसकी विषय – सामग्री निम्नलिखित हैं –

1. आय तथा रोजगार का निर्धारण:
आय तथा रोजगार का निर्धारण समष्टि अर्थशास्त्र की मुख्य विषय सामग्री है। आय एवं रोजगार का स्तर प्रभावपूर्ण माँग पर निर्भर करता है। प्रभावपूर्ण माँग कुल व्यय (उपभोग व्यय, विनियोग व्यय एवं सरकारी व्यय) द्वारा निर्धारित होती है।

2. सामान्य कीमत स्तर एवं स्फीति का विश्लेषण:
मुद्रा – स्फीति के कारण उत्पन्न स्फीतिक कीमत वृद्धि वर्तमान विश्व की सबसे कष्टदायक आर्थिक बीमारी है। विकसित एवं अर्द्ध – विकसित दोनों तरह की अर्थव्यवस्थाएँ इससे पीड़ित हैं। प्रो. कीन्स के आर्थिक विश्लेषण के बाद स्फीतिक कीमत वृद्धि का अध्ययन समष्टि अर्थशास्त्र का महत्वपूर्ण अंग बन गया है।

3. आर्थिक विकास के सिद्धांत:
आर्थिक विकास का अर्थशास्त्र, समष्टि अर्थशास्त्र की एक महत्वपूर्ण शाखा है। द्वितीय महायुद्ध के पश्चात् विश्व के अनेक देशों को गुलामी से स्वतंत्रता प्राप्त हुई। इन नवोदित राष्ट्रों में आर्थिक विकास की समस्या को आर्थिक नियोजन की सहायता से हल करने का प्रयत्न किया जा रहा है।

4. वितरण का समष्टि सिद्धांत:
वितरण की अनेक समस्याओं जैसे – कुल राष्ट्रीय आय में उत्पादन के विभिन्न साधनों का पारिश्रमिक कितना है तथा उनमें कुल आय का वितरण किस प्रकार किया जाता है, यह समष्टि अर्थशास्त्र के सिद्धांतों का मुख्य विषय है।

5. राजस्व का सिद्धांत:
राजस्व के अनेक सिद्धांत जैसे – अंतर्राष्ट्रीय व्यापार के सिद्धांत एवं आर्थिक नियोजन के सिद्धांत भी समष्टि अर्थशास्त्र के विषय हैं।

प्रश्न 13.
बाजार अर्थव्यवस्था एवं केन्द्रीयकृत योजनाबद्ध अर्थव्यवस्था में अन्तर स्पष्ट कीजिए?
उत्तर:
बाजार अर्थव्यवस्था एवं केन्द्रीयकृत योजनाबद्ध अर्थव्यवस्था में अंतर –

MP Board Class 11th Accountancy Important Questions Chapter 14 Financial Statement

Financial Statement Important Questions

Financial Statement Objective Type Questions

Question 1.
Choose the correct answer:

Question 1.
Trading Account discloses –
(a) Gross profit
(b) Net profit
(c) Net loss
(d) Gross profit or Gross loss
Answer:
(d) Gross profit or Gross loss

Question 2.
Direct Expenses are entered in:
(a) Trading Account
(b) profit & Loss Account
(c) Balance sheet
(d) None of these
Answer:
(a) Trading Account

Question 3.
Profit and loss Account discloses:
(a) Gross profit
(b) Gross profit or Gross loss
(c) Gross profit or Gross loss
(d) None of these
Answer:
(b) Gross profit or Gross loss

Question 4.
Goodwill is a –
(a) Fixed Asset
(b) Current Asset
(c) Fictitious Asset
(d) None of these
Answer:
(a) Fixed Asset

Question 5.
Drawing is deducted from:
(a) Sales
(b) Purchase
(c) Returns outward
(d) Capital
Answer:
(b) Purchase

Question 2.
Fill in the blanks:

1. Indirect Expenses are entered in …………….. account.
2. Gross profit or loss is transferred to …………….. account.
3. ……………. accounts are prepared at the end of the year.
4. Balance sheet is a ………………
5. Increase in capital at the end of the year represents ………………..

Answer:

1. Profit & loss account
2. Profit & loss account
3. Final
4. Statement
5. Profit.

Question 3.
Match the following:

Answer:

1. (c)
2. (d)
3. (b)
4. (a)
5. (f)
6. (e)

Question 4.
Answer in one word/sentence:

1. When cost of goods sold is deducted from net sales, we get.
2. The Expenses written in profit & loss Account are known as.
3. The statement of Assets & Liabilities is called.
4. Give an example of current Liability.
5. In which side of balance sheet, the goods in transit are shown.

Answer:

1. Gross profit
2. Indirect expenses
3. Balance sheet
4. Bank overdraft
5. Asset side.

Question 5.
State True or False:

1. Capital is a fixed Liability.
2. Closing stock is not shown in balance sheet.
3. Balance sheet is prepared on the basis of Trial balance.
4. Bad debt reserve is a loss.
5. Interest on drawings is loss of owner.

Answer:

1. True
2. False
3. True
4. False
5. True.

Financial Statement Short Answer Type Questions

Question 1.
What do you mean by trading account?
Answer:
At the end of the financial year, the trader prepares an account called trading account to ascertain the gross profit or loss, of the business, i.e., The result of purchase and sale of goods. In its debit side, opening stock of goods, purchases less returns, wages, freight, carriage, power and fuel, etc. are entered. In its credit side sales less returns, closing stock etc. are entered. Then both, the sides are totalled and balanced. It may be either gross profit or gross loss. The debit balance shows gross loss and credit balance shows gross profit. It will be transferred to profit and loss account.

Question 2.
Explain the meaning of profit and loss account.
Answer:
Profit and Loss Account is an account prepared to find out Net Profit on Net Loss of the business for a particular period. In this account, all indirect incomes and expenses are entered. It starts with either gross profit or gross loss.

Question 3.
What is balance sheet? What are the objects of its preparation?
Answer:
“Balance sheet is a statement which gives information of business liabilities and assets on a particular date of which shows the financial position of the business”.

Objects:

1. To ascertain the financial position of the business.
2. To show the various assets and liabilities of the business.
3. To find out the amount payable to creditors and the amount receivable from debtors.
4. To ascertain the capital balance.
5. To compare with previous years.

Question 4.
Write a short note on valuation of closing stock.
Answer:
The unsold goods lies with the seller at the end of the financial year is called closing stock. It is essential to calculate the value of unsold stock at the end of each financial year, before the preparation of final accounts. Without its valuation, the net profit or net loss of the business is not possible to find out. In the following way it is valued.

The valuation of unsold stock is done in two ways, i.e., either in market price or in cost price. Generally, it is done in market price or in cost price which is lower. By doing so, chances of arising loss is minimized.

Question 5.
Differentiate between trading account and profit & loss account.
Answer:
Differences between trading account and profit & loss account:

Question 6.
Explain the objects of preparing profit and loss account
Answer:
The following are the advantages of preparing P&L accounts:

1. To find out net profit or net loss of the business – The trading, profit and loss account shows the net profit or net loss of the business.
2. Comparison – The net profit or net loss ascertained from the P&L account helps to compare it with previous years and plans can be taken to change the business policies.
3. To calculate income tax – For the valuation of income tax, it helps the taxation authorities. It is done on the basis of net profit.
4. Knowledge of daily expenses – P&L account gives the information of daily expenses and incomes of the business.
5. Future plans – On the basis of net profit or net loss, ascertained from P&L account helps’the trader to make plans for the future.

Question 7.
Give the classification of liabilities.
Answer:
Liabilities can be classified as follows:

1. Fixed liabilities – The liabilities which are to be paid after a long period of time.
2. Current liabilities – The liabilities which are to be paid during short period (1 year) of time.
3. Contingent liabilities – Those liabilities whose payment depend on future happenings.

Question 8.
What is meant by financial statement? What are accounts are open in it.
Answer:
At the end of current year for knowing the financial condition of business what¬ever statements are prepared are called financial statement. Trading account, profit & loss account, balance sheet.

Question 9.
What is meant by closing stock ?
Answer:
The amount of goods remains unsold at the end of the accounting year is called as closing stock. It is necessary to enter closing stock in Dr. side of trading A/c because, profit or loss cannot be ascertained without taking closing stock into consideration.

Financial Statement Long Answer Type Questions

Question 1.
Explain the importance of final accounts.
Answer:
Ahead are the main importance of preparing final accounts:

1. To know the production cost and profit or loss on goods – Trading Account helps to know the cost of production and profit or loss made on goods for a particular period.

2. To know Net Profit or Net Loss of the business – The profit and loss account includes all indirect incomes and expenses, profits and losses of the business for a particular period. It enables us to find out the net profit or net loss of the business.

3. To know the financial position of the business – A Balance Sheet is prepared to find out the financial position of the business on a particular date. This statement contains all the assets and liabilities in its actual value. It must be equal.

4. To increase the earning capacity of the business – Final accounts are prepared in each year. It helps the trader to compare them from year to year. It enables him to find out the reasons of increase or decrease in profit or earning capacity.

5. To help in making future plans – The informations obtained from final account can work as a guideline for the business and on its base, he can make future plans.

Question 2.
Differentiate between trial balance and balance sheet.
Answer:
Differences between trial balance and balance sheet:

Question 3.
Differentiate between trading and profit & loss account and balance sheet Answer: Differences between balance sheet and profit & loss account:

Question 4.
Explain in brief me items which are written in the debit side of trading account
Answer:
The various iterns that appear in Dr. side of trading account:

1. Opening stock – Last year’s unsold stock is brought toward and written as opening stock in trading account
2. Purchases – The total amount of goods purchased is reduced by purchase returns.
   goods destroyed by fire etc. and net purchases are written.
3. Direct expenses – It refers to those expenses which are incurred for purchase or production of goods, e.g., carriage purchases, octroi, wages, fuel etc.
4. Gross profit – The credit balance of trading account is turned as gross profit. It is transferred to profit and loss account.

MP Board Class 11 Accountancy Important Questions

MP Board Class 11th Accountancy Important Questions Chapter 13 Bills of Exchange and Promissory Note

Bills of Exchange and Promissory Note Important Questions

Bills of Exchange and Promissory Note Short Answer Type Questions

Question 1.
What are the parties to a bill? Explain.
Answer:
There are three parties to a bill. They are:

1. Drawer – He is the person who draws a bill. He is the seller or the creditor. He writes the bill.
2. Drawee – He is the person to whom the bill is drawn. He is also known the acceptor of the bill. He is buyer or the debtor.
3. Payee – He is the person to whom the payment is made on the due date. He may be the drawer, banker or the endorsee.

Question 2.
Give a specimen form of ‘Bills of Exchange’.
Answer:
A specimen form of bill of exchange:

Question 3.
What is meant by Accommodation Bill?
Answer:
These bills are written between the two parties for mutual financial help. No debtor-creditor relationship exists in such condition.

Question 4.
Mention various characteristics of bill of exchange.
Answer:
The characteristics features of bill of exchange are:

1. It is an unconditional order
2. It must be in writing
3. The maker or the writer of the bill must sign on it
4. It is drawn on a particular person
5. It must be accepted by one person to whom it is drawn
6. It is payable on demand or on the expiry of a certain period
7. It is written for a certain amount.

Question 5.
Explain renewal of a bill.
Answer:
Renewal of a bill refers to the cancellation of old bill and preparation of new bill for an extended period of time. It is done by the drawer on the request of drawee when the expressor his inability to pay.

Question 6.
What do you mean by renewal of a bill? Explain with an example.
Answer:
Renewal of a Bill:
Sometimes the acceptor of the bill found himself unable to meet his acceptance of the bill on the due date. So, he may request the drawer of the bill for the extension of time. If he agrees, the old bill is cancelled and a fresh one is drawn in place of the old one. For this extension of period, interest is charged and the bill is made with the principal amount and interest.

Example : Ram cancelled the old bill of Rs. 4,000 and draw a new bill on Mohan by charging interest at the rate of 6%, for a period of three months. The new bill should include noting charges of Rs. 10 also.

Solution :
Calculation of amount of the new bill

Question 7.
What is meant by dishonour of a bill? Explain in detail.
Or
Explain the procedure of dishonour of a bill.
Answer:
Non – payment of bill on due date due to any reason is known as dishonouring of a bill. In such a case, the holder of the bill can recover the amount from any of the previous endorser or drawer.
Due to the following causes a bill may be dishonoured:

1. When the acceptor does not have adequate money to meet his acceptance
2. When the acceptor is declared as insolvent
3. When the payment is stopped by the Govt
4. When the acceptor becomes lunatic, mad or expires.

When a bill is dishonoured, it is essential to certify it by a notary public by the holder in due course. He requests the drawee to make the payment. If again he denies to make payment then he approaches the court to recover the amount from him.

Question 8.
What entries will be passed in the books of drawer in case of dishonour of a bill in following cases:

1. Bill is retained with drawer and he pays noting charges.
2. Bill is endorsed to Mr. X and Mr. X pays noting charges.

Answer:
1. If the bill retained with drawer and he pays noting charges:
Drawee’s A/c Dr. – –
To Bills Receivable A/c –
To Cash A/c –
(Being bill dishonoured and noting
charges paid)

2. If bill is endorsed to Mr. X and noting charges are paid by him:
Drawee’s A/c Dr. – –
To Mr. X’s A/c –
(Being bill dishonoured and noting charges paid)

Question 9.
What is a promissory note? Mention some features of promissory note.
Answer:
A promissory note is an instrument in writing containing an unconditional undertaking, signed by the maker to pay a certain sum of money to a person or to his order or to the bearer of the instrument. According to Indian Negotiable Instrument Act, “Promissory note is a promise to make the payment of certain specified amount to the creditor on demand or after expiry of certain period”.

In promissory note, acceptance is not required because the writer himself is the debtor. In’ transactions which are related to promissory note, there are mainly two parties one is maker (debtor) and second is payee (creditor). In this writer promises to pay the amount after certain period.

Special feature of promissory note:

1. It is a document in writing.
2. It must be a promise by the maker to make the payment in future.
3. The promise to pay must be unconditional.
4. It is a promise to pay specified amount.
5. Payment may be made on demand or after the expiry of certain period.
6. It must be signed by the maker of the instrument.
7. It should be properly stamped.

Bills of Exchange and Promissory Note Long Answer Type Questions

Question 1.
Differentiate between bill of exchange and promissory note.
Answer:
Difference between Bill of Exchange and Promissory Note:

Question 2.
Differentiate between bills receivable and bill payables.
Answer:
The following are the difference between receivables and bill payable:

Question 3.
Explain in the following:

1. Days of Grace
2. Endorsement of a bill
3. Retirement of a bill.

Answer:
1. Days of Grace:
Bill of exchange is written for a definite period. For the convenience of the acceptor, three extra days are allowed to him for making the payment. These extra day’s are known as ‘Days of Grace’. Three days are added to the due date of the bill.

2. Endorsement of a bill:
When the accepted bill is transferred by the drawer in favour of his creditors to pay off his debt is called endorsement. The person who endorses the bill is called endorser and to whom it is endorsed is called endorsee. When a bill is endorsed, the endorsee will be entitled to get the payment.

3. Retirement of a bill:
Sometimes the acceptor makes the payment of the bill before the due date. In this situation, he does not pay full amount of the bill. The drawer agrees to deduct some amount. This amount is called rebate. This is called ‘Retirement of bill under Rebate’.

Question 4.
Describe types of bills of exchange?
Answer:
Kinds of bills of exchange are as follows:

1. On the basis of place.
2. On the basis of use.
3. On the basis of time.
4. On the basis of receiver.
5. On the basis of Book – keeping.

1. On the basis of place:

• Inland bill – When drawer and drawee are both from same country then it is called Inland bill.
• Foreign bill – When drawer and drawee both are different countries then it is called foreign bill.

2. On the basis of use:

• Trade bill – A trade bill is used for purchase and sale of goods or commodity.
• Accommodation bill – This bill is drawer by drawer on drawee for meet financial need not for any business transaction.

3. On the basis of time:

• Sight bill – This type of bill are liable for payment at time of presentation. ,
• Tenure bill – This type of bill is to be made by acceptor on the date mentioned in the bill.

4. On the basis of receiver:

• Bearer bill – The payment of such bills is made to that person who present the bills for payment.
• Order bill – The payment of this bill is made to the person whose name is written on the bill on his order to any other person.

5. On the basis of Book – keeping

• Bills receivable – These bills are those, the payment of which is to be received by traders at certain ate.
• Bills payable – These bills are those the payment is made of purchases at certain date.

MP Board Class 11 Accountancy Important Questions

MP Board Class 11th Accountancy Important Questions Chapter 12 Provision and Reserves

Provision and Reserves Important Questions

Provision and Reserves Objective Type Questions

Question 1.
Choose the correct answers:

Question 1.
Which reserve is not shown in balance sheet –
(a) General reserve
(b) Specific reserve
(c) Secret reserve
(d) Capital reserve.
Answer:
(c) Secret reserve

Provision and Reserves Short Answer Type Questions

Question 1.
What is General Reserve? What are its objectives?
Answer:
Reserve mean amounts set aside out of profits and other surpluses to meet future uncertainties. In other words, a reserve is meant for meeting any unknown liability or loss in the future. General Reserves are not meant for any purpose but can be utilised for any exigencies. General reserves are created for the following purposes:

1. To compensate the unknown loss arising in future.
2. To strengthen the financial position of the business.
3. For reinvesting the profits in the business so as to expand the Current business.
4. In case of companies, to maintain the rate of dividends for the shareholders.

Question 2.
Define secret Reserve. Explain the objects of secret Reserve.
Answer:
The main objects of secret reserve are:

1. To strengthen the internal situation of the business.
2. To compensate uncommon losses.
3. To show reduced profit of the company.
4. To hide the errors committed by Managers.

Question 3.
Explain the methods of creating secret Reserve.
Answer:
Secret reserve is mainly created by showing Assets at a value less than its actual value or by way of showing Exaggerated liabilities. Some main methods adopted are:

1. To provide more than required depreciation on Fixed Assets.
2. Not to show Goodwill in the books.
3. Not disclosing Accrued Incomes in the balance sheet.
4. Not adjusting prepaid expenses.
5. To show liabilities at a higher value than its actual value.

Question 4.
Mention three characteristics of Reserve.
Answer:
The characteristics or features of ‘Reserves’ are:

1. It is created out of net profits or divisible profits. As such the reserves are also termed as ‘Retained Earnings’ or ‘Undistributed Profits.’
2. Creation of Reserves is not a legal necessity. It is created voluntarily for strengthening the financial position of the business and for meeting an unforeseen Exigencies in the future.
3. It is not created to meet any known liability or depreciation in the value of assets but for meeting an unknown liability or loss in the future.

Question 5.
What do you mean by bad debt reserve?
Answer:
Bad debt is a business loss for adjusting this loss, a reserve is maintained each year from the debtors. This reserve is known as bad debt reserve, it is the amount of provision to write off bad debt in future.

Question 6.
What do you mean by bad and doubtful debt?
Answer:
Provisions for Bad and Doubtful Debts: At the end of the year there are certains debtors from whom it is expected that some amount may be received and some amount may not be received and there may be debtors from whom it is expected that no amount will be received. Hence, provision made for such losses or doubtful amount is known as “Provision or Reserve for Bad and Doubtful Debts.” Its amount and time is not known exactly. Hence provision is made for an expected amount.

This provision is deducted from the amount of debtors in balance sheet. If provision made is more than the amount of doubtful debts then such excess will be termed as Reserve and will be shown in the liability side of balance sheet. Accounting Treatment: The amount of provision or reserve for bad and doubtful debts is shown in the debit side of Profit and Loss Account and is deducted from the amount of debtors in Balance Sheet in the asset side.

Provision and Reserves Long Answer Type Questions

Question 1.
Distinguish between Reserves and provisions.
Answer:
Difference between Reserves and Provisions:

Question 2.
Why a provision for discount on debtors and creditors are maintained in the business?
Answer:
Discount provision on sundry debtors:
When the sundry debtors make their payment before the prescribed time, they are allowed some concession. This concession is called cash discount. It is a loss to the business. In certain condition, the trader keeps a reserve to allow discount on debtors for future, in anticipation.

This reserve or provision is known as discount provision on sundry debtors. It is calculated after the deduction of further bad debt and new reserve from debtors at a percentage. This amount is shown in the debit side of profit and loss account and is also deducted from debtors in the balance sheet.

Discount provision on sundry creditors:
When the trader makes the payment before the stipulated time, he is allow’ed some discount. It is an income of the business. In certain condition, the trader keeps a reserve in anticipation that some discount may receive in future. This reserve on provision is called, ‘Discount provision on sundry creditors’. It is shown in the credit side of P&L A/c and is deducted from the sundry creditors in the balance sheet.

Question 3.
Distinguish between revenue reserve and capital reserve.
Answer:
Difference between Revenue and Capital reserve

Question 4.
Explain the various types of Reserve.
Answer:
Reserve can be classified as follows:

1. Revenue reserve – Revenue reserves are those reserve which are created out of profit (revenue) earned through the business activities. Any reserve which is not capital reserve is called capital reserve.

2. Capital reserve – Capital reserve is created by capital profit or capital receipt. The profit which has not been earned from general business activities of the firm are termed as capital profit.

3. Specific reserve – When any part of profit the of business is kept for any specific purpose and it is utilised for that specific purpose then such reserve are called as specific reserve.

4. General reserve – A part of reserve which is created out of revenue reserve to meet out future contingencies and risk is called as general reserve.

5. Secret reserve – It is not shown in liabilities. If any reserve which is not shown in balance sheet which is called secret reserve.

MP Board Class 11 Accountancy Important Questions

MP Board Class 11th Accountancy Important Questions Chapter 11 Depreciation

Depreciation Important Questions

Depreciation Short Answer Type Questions

Question 1.
What do you mean by depreciation? What is the need of providing Depreciation?
Or
Write objects of providing for depreciation.
Answer:
Due to constant use of fixed assets in the business, there is continuing diminution or decrease in their value, quantity and quality. This permanent and continuing diminution or decrease in the value of asset is called ‘Depreciation’.

The objects of charging depreciation are as follows:

1. Replacement of fixed assets:
Due to constant use of a fixed asset, it becomes useless after a period of time. Hence, it must be necessary to replace it. At that time the businessman can utilize the money which were written off as depreciation for the replacement of the asset.

2. Proper distribution of loss:
The value of a fixed asset decreases due to its constant use and their loss is relevant to the particular year, i.e., their loss must be accounted each year and that is possible by charging depreciation.

3. For saving tax:
Law provides depreciation as a deduction from income. This reduces the taxable income of the business. So, to save payment of income tax depreciation should be charged.

4. To know accurate profit:
Depreciation is an expense like any other expense. So, only after providing depreciation the real profit for the period can be found.

5. To know the true and fair financial position:
As the value of asset is continually diminishing, it would be very wrong to show them at the original purchase value in the balance sheet. It is only reducing depreciation that the net value of assets can be known.

Question 2.
Explain any five reasons for origin of depreciation.
Answer:
Causes for the Origin of Depreciation : Due to various reasons depreciation arises

1. Continuous use of assets:
In the business concern fixed assets are of daily use, resulting wear and tear, obsolescence and decline in the value of the assets. This decline of value of an asset is technically known as depreciation.

2. Obsolescence:
It means discard of an old machine which becomes uneconomic due to introduction of new machine of latest technique. The latest machine not only ensures cost minimization but the increase in production as well. Thus, for the sake of economy and efficiency of old machine is scrapped despite it being capable of giving service for few more years.

3. Exhaustion of original shape:
Some assets like mines, quarries, etc. exhaust considerably or completely as a result of excavation or removal of resources inherent therein. More and more, excavation / extraction leads to shrinkage or lessening of estimated available quantity. This decline in the value or quantity can be treated as depletion or depreciation.

4. Effluxion or expiration of time:
The value of old machines is always less than that of new machines. This is because, due to the passage of time and charging of depreciation every year the book value of old machine diminishes gradually. After a period of time the value becomes nominal or zero. For example, take leased land of Rs. 50,000 for 15 years. After 10 years its value may be less then half. This decline of value can also be treated as depreciation.

5. Fall in market price:
The market price of the fixed asset may rise or fall. This change in price is of temporary in nature. But the market price of an asset falls due to some special reasons, it can be trated as depreciation.

Question 3.
Write the characteristics of depreciation.
Answer:
The main characteristics of depreciation are as follows :

1. Depreciation is charged only on fixed assets.
2. Depreciation results in decrease of the value of a fixed asset.
3. By depreciation the value of the fixed asset is constantly declining.
4. Depreciation is a business expense.
5. Depreciation is related with the account of a particular asset only.

Question 4.
Write the demerits of reducing balance method.
Answer:
Demerits of reducing balance method are:

1. No provision for interest on capital – Like fixed instalment method there is no provision of interest on capital invested in the fixed assets.
2. High rate of depreciation – In this method, high rate of depreciation is essential. If the depreciation is charged on low rate, it will take many years to written off the assets.
3. The value of assets can never be zero – This method of depreciation can be applied only when there is some residual value of the asset. In this method, inspite of charging depreciation, the value of assets can never be zero.

Depreciation Long Answer Type Questions

Question 1.
Distinguish between Fixed Instalment method and Reducing Balance Method of Depreciation.
Answer:
Fixed instalment method is called straight line method because when depreciation is charged evenly for all years, the curve will come in this manner:

MP Board Class 11 Accountancy Important Questions

MP Board Class 11th Economics Important Questions Unit 6 Development Experience of India: A Comparison with Neighbours

MP Board Class 11th Economics Important Questions

Development Experience of India: A Comparison with Neighbours Objective Type Questions

Question 1.
Choose the correct option:

Question (a)
China republic was established in:
(a) 1945
(b) 1947
(c) 1949
(d) 1951
Answer:
(c) 1949

Question (b)
Which is the poorest nation:
(a) India
(b) China
(c) Pakistan
(d) Kerala
Answer:
(c) Pakistan

Question (c)
In year 2010 which was biggest importer:
(a) America
(b) Japan
(c) China
(d) India
Answer:
(c) China

Question (d)
Economics of India and Pakistan depends for G.T.P:
(a) On primary level
(b) Secondary level
(c) Tertiary level
(d) None of these.
Answer:
(c) Tertiary level

Question (e)
Which country adopted infant policy:
(a) India
(b) China
(c) Pakistan
(d) None of these.
Answer:
(b) China

Question 2.
Fill in the blanks:

1. Biggest contributor to India’s National Income is …………………………
2. In China great leap forward mission started in ………………………..
3. Pakistan has better situation in field of ………………………. than India and China.
4. In ……………………… urban population is least.
5. Emission of Carbon – di – oxide is maximum is …………………………..

Answer:

1. Service
2. 1958
3. Availability of facility
4. India
5. China.

Question 3.
Match the columns:

Answer:

1. (c)
2. (e)
3. (a)
4. (b)
5. (d).

Question 4.
State true or false:

1. In 1978 ‘Reform policy’ started by China get a great blow.
2. Ratio of people below poverty line is higher in India.
3. Economy of Pakistan achieved great help by remittance of labourers.
4. In comparison to China Indian human development index is higher.
5. The Great leap Forward programme was started in Pakistan.

Answer:

1. True
2. True
3. True
4. False
5. False.

Question 5.
Answer in one word:

1. Which model was adopted by Pakistan for development?
2. Renmanbi is the currency of which country?
3. Which price policy is there in China?
4. In 2014 HDI in India was?
5. Which is the poorest among India, Pakistan and China?

Answer:

1. Statism
2. China
3. Double
4. 0 – 609
5. Pakistan.

Development Experience of India: A Comparison with Neighbours Very Short Answer Type Questions

Question 1.
Write two indications of HDI?
Answer:

1. GNP per capita
2. Life expectancy.

Question 2.
When did China started five year plans?
Answer:
In 1953.

Question 3.
When did economic reforms started in India and Pakistan?
Answer:
Economic reforms were started in 1951 in India and in 1956 in Pakistan.

Question 4.
Name the two areas where India is ahead of Pakistan?
Answer:
Rate of GDP and Per Capita Income.

Question 5.
In which area China is ahead of India and Pakistan?
Answer:
Human development and GNP per capita.

Question 6.
What is liberty indicator?
Answer:
Liberty indicators means a tigers night to play in the governance of their country.

Question 7.
Name any two regional groups?
Answer:

1. SAARC
2. ASEAN.

Question 8.
When did India and Pakistan became Independent?
Answer:
In 1947.

Question 9.
When was People’s Republic of China established?
Answer:
In 1949.

Question 10.
What was common in the development strategy of India, China and Pakistan?
Answer:
Five Year Plans.

Question 11.
When was Great Leap Forward Movement started?
Answer:
In 1998.

Question 12.
What is Great Leap Forward?
Answer:
The Great Leap Forward was a campaign initiated in 1958 in China by Man’s which was aimed to Modernize China’s economy.

Question 13.
What is the objective of Great Leap Forward?
Answer:
Industrialization of nation on large scale.

Question 14.
What was the objective of commune?
Answer:
The objective of commune was collective farming.

Question 15.
When was the Great Proletarian Cultural Revolution started?
Answer:
In 1965.

Question 16.
What was the objective of Great Protestarion Cultural Revolution?
Answer:
To send students and professionals to work and learn from country side.

Question 17.
When did economic reforms started in China?
Answer:
In 1978.

Question 18.
When did economic reforms started in Pakistan?
Answer:
In 1988.

Question 19.
Why is density of population of China is less than India and Pakistan?
Answer:
Because the geographical area of China is big.

Question 20.
Which country adopted one child norm?
Answer:
China.

Question 21.
When was one child norm implemented in China?
Answer:
In the end of decade of 1970.

Development Experience of India: A Comparison with Neighbours Short Answer Type Questions

Question 1.
Mention some examples of regional and economic groupings?
Answer:
Following are some examples of regional and economic groupings:

1. SAARC
2. European Union
3. ASEAN
4. G – 8
5. G – 20
6. NAFTA
7. SAFTA.

Question 2.
What are the various means by which countries are trying to strengthen their own domestic economics?
Answer:
Following are the various means by which countries are trying to strengthen their own domestic economics:

1. Countries are forming regional and global groupings such as European Union, G – 8, G – 20, ASEAN, SAARC, etc.
2. Countries are making comparison of their policies with the policies of their neighbouring countries.

Question 3.
What similar developmental strategies have India and Pakistan followed for their respective developmental paths?
Answer:
Initially India and Pakistan adopted economic planning i.e., Five Year Plans as development strategy. Accordingly both the countries created a large public sector and raised public expenditure on social development. Till 1980 both the countries had similar growth rates and per capita income.

During this period, both the countries introduced a variety of regulated policy framework including tariff protection and direct import controls. During 1980s and 1990s, both the governments shifted their policy orientation to liberalisation and role of private sector. India introduced economic reforms in 1991 while Pakistan initiated economic in 1988.

Question 4.
Explain the Great Leap Forward Campaign of China as initiated in 1958?
Answer:
Great Leap Forward (GLF) campaign was initiated in China in 1958 as a strategy of economic development. Under this, the main emphasis was on the industrialisation of the country on a massive scale. People were encouraged to set up industries in their backyards. In rural areas, commune system was followed to promote collective forming. However, the Great Leap Forward compaign could not succeed.

Question 5.
China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree? Elucidate?
Answer:
Yes, we agree with the statement that China’s rapid industrial growth can be traced back to its reforms in 1978. Under the reforms, private sector firms and co – operative societies were allowed to produce goods. At this stage, state enterprises (State Owned Enterprises) were made to face competition.

Under dual pricing, farmers and industrial units were required to buy and sell fixed quantities of inputs and outputs on the basis of prices fixed by the government and the rest were purchased and sold at market prices. Besides, special economic zones were set up to attract foreign investors.

Question 6.
Describe the path of developmental initiatives taken by Pakistan for its economic development?
Answer:
Pakistan became independent in 1947. Pakistan announced its first Five Year Plan in 1956. Till 1998, Pakistan had eighth Five Year Plans. Pakistan follows the mixed economy model with co – existence of public sector and private sector. In the initial period of planning, Pakistan adopted a policy of regulated environment characterised by tariff protection and import substitution.

As a result of huge public investment, the production of foodgrains also increased. In 1970s, capital goods industries were nationalised. However, by 1980, the emphasis was shifted to denationalisation and promation of private sector. The government offered incentives to the private sector. Reforms were introduced in Pakistan in 1988.

Question 7.
What is the important implication of the “one norm” in China?
Answer:
The important implication of the “one norm” in the check on population growth. As a consequence, after a few decades, there will be more elderly people in proportion to young people. This will force China to take steps to provide social security measures with fewer workers.

Question 8.
Evaluate the various factors that led to the rapid growth in economic development in China?
Answer:
Following are the various factors that led to the rapid growth in economic development in China:

1. Government Control:
Since its establishment in 1949, China followed the strategy of socialism under which all the sectors of the economy, enterprises and land were under the government control.

2. Great Leap Forward:
Great Leap Forward campaign was launched in 1958 to promote industrialisation and collective fanning in agriculture.

3. Great Proletarian Cultural Revolution:
During 1966 – 1976, students and professionals were sent to work and learn from the countryside.

4. Economic Reforms:
Economic reforms were introduced in China in 1978. China introduced reforms in phases. In the initial phase reforms were introduces in agriculture, foreign trade and investment sectors. In the later phase, reforms were initiated in the indus¬trial sector. To attract foreign investors, special economic zones were set up.

Question 9.
Group the following features pertaining to the economics of India, China and Pakistan?

1. One – child norm
2. Low fertility rate
3. High degree of urbanization
4. Mixed economy
5. Very high fertility rate
6. Large population
7. High density of population
8. Growth due to manufacturing sector
9. Growth due to service sector.

Answer:
Grouping of features pertaining to the economics of India, China and Pakistan are as follows:

Question 10.
Give reasons for the slow growth and re-emergence of poverty in Pakistan?
Answer:
Following are the reasons for the slow growth and re-emergence of poverty in Pakistan:

1. Decline in the growth rate of agriculture sector which employs the largest proportion of work force.
2. Political instability in pakistan.
3. High rate of inflation.
4. Dependence on foreign loans.

Question 11.
What are the similarities in the developmental strategies of India, Pakistan and China?
Answer:
Following are the similarities in the developmental strategies of India, Pakistan and China:

1. All the three countries have started towards developmental path at the same time.
2. All the three countries followed the similar developmental strategies. All the three countries started their development through Five Year Plans and emphasis on pubic sector.
3. Till 1980s, all the three countries had similar growth rates and per capita income.
4. All the three countries have introduced economic reforms.

Question 12.
Compare and contrast India and China’s sectoral contribution towards GDP in 2008. What does it indicate?
Answer:
As far as sector wise contribution to growth is concerned in 2008, contribution of agriculture to GDP in China was 10% while in India it was 19%. On the other hand manufacturing contributes the highest to GDP in China at 47%, whereas, in India service sector contributes the highest at around 55%.

In the last two decades, the growth of agriculture sector has declined in both the countries. In the industrial sector, China has maintained a double-digit growth rate whereas for India industrial growth rate has declined. In the case of service sector, China has been able to raise its rate of growth in 2008 – 2010 while service sector growth in India has stagnated. China’s growth is mainly contributed by the manufacturing sector and India’s growth by service sector.

Development Experience of India: A Comparison with Neighbours Long Answer Type Questions

Question 1.
Mention the salient demographic indicators of China, Pakistan and India?
Answer:
The salient demographic indicators of China, Pakistan and India are discussed below:

1. The population of Pakistan is very small and accounts for roughly about one – tenth of China or India. Though, China is the largest nation and geographically occupies the largest area among the three nations its denstiy is the lowest.

2. One child norm was introduced in China in late 1970’s as population growth was the main reason. This was a measure led to a decline in the sex ratio, the proportion of females per 1000 males. Although sex ratio is based against females in all three countries are trying to adopt various measures to improve the situation. Due to one child norm, after few decades there will be more elderly people in proportion to young people.

3. The fertility rate is low in China and very high in Pakistan.

4. Urbanisation is high in both Pakistan and China with India having 28% of its people living in urban areas.

Question 2.
Mention the various indicators of human development?
Answer:
Following are the various indicators of human development:

1. Longevity or Life Expectancy at Birth: Longevity means the number of years of that a new bom infant can expect to live.
2. Knowledge: Knowledge is measured by a combination of adult literacy rate and combined primary, secondary and tertiary school enrolment ratios.
3. Decent standard of Living: It is measured by real per capita income at purchasing power parity in dollars.
4. People below poverty line.
5. Infant mortality rate:
6. Maternal mortality rate.
7. Adult literacy rate.
8. GNP per capita etc.

Question 3.
Compare and contrast the development of India, China and Pakistan with respect to some salient human development indicators?
Answer:
The following table presents the salient human development indicators in India, China and Pakistan:

Source:
Human Development Report 2011 and World Development Indicators (W. W. W. worldbank. Org)

Table shows the following points:

1. China is ahead of India and Pakistan in human development indicators. China has better ranking in terms of income indicator such as GDP per capita, or proportion of population below poverty line or health indicators such as mortality rates, access to sanitation, literacy, life expectancy or malnourishment.

2. Pakistan is ahead of India in reducing proportion of people below the poverty line with 37 – 2% people below poverty line in India while the ratio being 22 – 3% in Pakistan in 2004 – 2006.

3. Pakistan’s performance in education, sanitation and access to water is better than India.

4. Maternal mortality is very high in India and Pakistan as compared to China. In China, for one lakh births, only 38 women die whereas, in India and Pakistan, more than 200 women die.

5. All the three countries report providing improved water sources for most of its population.

6. Considering the international poverty rate of $ 1 a day, India has the largest share of poor among the three countries.

MP Board Class 11th Economics Important Questions

MP Board Class 11th Accountancy Important Questions Chapter 10 Rectification of Errors

Rectification of Errors Important Questions

Rectification of Errors Objective Type Questions

Question 1.
Choose the correct answer:

Question 1.
Errors are rectified in this book –
(a) Ledger book
(b) Journal proper
(c) Trial balance
(d) None of these.
Answer:
(b) Journal proper

Question 2.
Errors Committed by omitting entries in the Journal book is called –
(a) Error of commission
(b) Error of principle
(c) Error of omission
(d) None of these.
Answer:
(c) Error of omission

Question 3.
If the trial balance does not tally after many efforts then following Account is opened –
(a) Purchase account
(b) Suspense account
(c) Sales account
(d) None of these.
Answer:
(b) Suspense account

Question 4.
Errors committed due to lack of basis principle of Accounting are called –
(a) Compensating errors
(b) Error of principle
(c) Single sided error
(d) None of these.
Answer:
(b) Error of principle

Question 2.
Fill in the blanks:

1. Errors committed while totalling, balancing of Accounts are called ……………
2. …………… errors are disclosed by Trial balance.
3. If one error nullifies the effect of another error, such errors are called …………….
4. Suspense Account is a ……………. Account.

Answer:

1. Arithmetical errors
2. Arithmetical
3. Compensating errors
4. Temporary.

Question 3.
Match the following

Answer:

1. (d)
2. (c)
3. (a)
4. (b).

Question 4.
Answer in one word/sentence:

1. The entries passed in the Journal proper for rectifying entries are called.
2. The total of purchase book was written Rs. 200 instead of Rs. 2,000. This is an example of.
3. When two errors nullify each others effect, then such errors are called.
4. When are rectifying entries passed?

Answer:

1. Rectifying entries
2. Error of casting
3. Compensating errors
4. Beginning of the year.

Question 5.
State True or False:

1. Suspense Account is a Permanent Account.
2. Single sided errors are generally rectified directly in the ledger accounts before closing the accounts.
3. Final accounts are not affected through rectification of errors.
4. Single sided errors are rectified through Suspense Account.

Answer:

1. False
2. True
3. False
4. True.

Rectification of Errors Short Answer Type Questions

Question 1.
Write some errors which are disclosed by a trial balance?
Answer:
The following are some of the errors which are disclosed by a trial balance:

1. Wrong posting in an account.
2. Double posting of an entry in an account.
3. Entry of wrong amount in an account.
4. Entry of one side posting.
5. Error in bringing down the balance forward in new page.
6. Error in balancing of account.

Question 2.
How the errors can be rectified? Explain.
Answer:
After the errors are located, it is essential to rectify them. Rectification can be made into three ways. They are:

1. Cut the figures or by erasing the old figures and make it correct.
2. Write rectification entries directly in the books of accounts.
3. Write rectification entries in the journal.

Cut the figures or erasing the old figures and make it correct is wrong according to the principles of double entry system. By doing so, the validity of accounting is abolished. Rectification of entries in the ledger accounts or in the journal is made after the completion of financial year.

Question 3.
How the double sided errors are rectified? Explain.
Answer:
The double sided errors are rectified through journal entries, where one account is debited and the other account is credited.

For the rectification of double sided error, the following steps are to be remembered:

1. Make the correct entry as per the principles of double entry system.
2. Repeat the wrong entry, which is done in the books of accounts.
3. Make the opposite entry of wrong entry.
4. Compare the correct entry with opposite entry and strike off the common entry. The resulting entry is the rectification entry.

Example: Ram purchased a furniture, which was debited in purchases account.

Question 4.
What do you mean by suspense account? On which circumstances transactions are entered there?
Answer:
After the errors have been located, they must be rectified and the Trial balance should be tallied. This is done by transferring the difference into a special account called suspense account. It is temporary and fictitious account. In future, when the errors are located, the entries for their rectifications are done in this account. The suspense account will debited if the total of the credit column of trial balance exceeds the total of credit column, it will be credited in the other case.

In the following circumstances transactions are entered there:

1. A transaction is completely omitted
2. One sided errors
3. Unlocated errors
4. Disagreement of trial balance.

Rectification of Errors Long Answer Type Questions

Question 1.
How gross profit, net profit and balance sheet are affected by rectification of errors? Explain.
Answer:
The gross profit, net profit and balance sheet are affected by the rectification of errors. It is as follows:

1. Effect on gross profit –  If the credit side of trading account is increasing due to the rectification entry, the gross profit will also increase. On the other hand, if the debit side of the trading account is increased due to rectification, the gross profit will be reduced.

2. Effect on net profit – If the credit side of profit and loss account is increased due to. the rectification, the net profit will increase and vice versa. Thus rectification affects net profit.

3. Effect on balance sheet – The effect on net profit result the increase or decrease in capital balance, i.e., it will affect the total assets and liabilities in the balance sheet.

Question 2.
Mention the errors which are disclosed by trial balance.
Answer:
The following are some of the errors which are disclosed by a trial balance:

1. Wrong posting in an account.
2. Double posting of an entry in an account.
3. Entry of wrong amount in an account.
4. Entry of one side posting.
5. Error in bringing down the balance forward in new page.
6. Error in balancing of account.

MP Board Class 11 Accountancy Important Questions