Short Questions Answers 1. Who are some of the basic users of financial statements and how do they use them? Financial statements contain a balance sheet, income statement, cash flow statement and the statement of retained earnings of a firm. Various stakeholders use the firm’s financial statement. The basic users of financial statements are shareholders, […]
Chapter 5: Socio-Cultural Environment
Very Short Question Answer 1. Enlist the social class in Nepal. Nepalese society has three classes. Upper class Middle class Lower class 2. Define socio cultural environment of business. Socio-cultural environment of business refers to all the cultural surroundings that influence business activities. It includes knowledge, customs, traditions, morals, and values, religion, language, symbols, works […]
Chapter 3: Tax Accounting And Timing
Very Short Question Answer Briefly state the accounting methods to be applied by different taxpayer. The accounting methods to be applied by different taxpayers are summarized below: Persons Income Head Accounting Method Individual Sole trader/proprietor Partnership firm Company Employment, Investment Business Business, Investment Business, Investment Cash basis Cash or accrual basis Cash […]
Chapter 1: Introduction to Financial Management
Brief Short Answer Questions 1. What do you mean by financial management? Financial management is the decision making process relating to investment, financing, working capital and dividend decision. It is concerned with procurement of funds from the least costly source of financing and their effective and efficient allocation into productive uses. 2. What is the […]
Chapter 2: Taxation of Income in Nepal
Very Short Question Answer Enumerate any four characteristics of Income Tax Act 2058. The four characteristics of Income Tax Act, 2058 are given below. Confinement of all tax related matters in a single act. Detailed definitions of key terminologies. Broad tax base Allowed deduction for all related expenses Explain the relationship of Income Tax Act […]
Chapter 1: Conceptual Foundation
Very Short Question Answer Define tax. State any two canon of taxation.(2073) Tax is defined as a compulsory contribution from a person to the government to defray the expenses incurred in the common interest of all, without reference to special benefit conferred. The two canons of taxation are as explained below: Canon of Equality: This […]
Chapter 4: Economic Environment
Very Short Questions Answers 1. Write about the economic dimension. Dimensions of an economy refer to the facets of economy of a country. They are reflected through demographic forces, income level, income distribution, growth of agricultural and industrial activities, development of service sector, level of employment, balance of payments, rate of inflation, urbanization, and globalization. […]
Chapter 3: Environmental Regulations / Legal Environment
Short Questions Answers 1. Point out two legislations related to finance and investment. Two legislations related to finance and investment are: Foreign Investment and Technology Transfer Act, 1992 Foreign Exchange Regulation Act, 1961. 2. Point out two legislations related to consumer protection. Any two legislations related to consumer protection in Nepal are as follows. Black […]