Chapter 6: Inflation

Very Short Question Answer 1.  What is meant by inflation? Inflation is a persistent and appreciable rise in general price level or decline in the value of money. It implies that there exist inverse relationship between price level and value of money. 2. How many types of inflation on the basis of speed? On the […]

Chapter 5: Income Determination Model

Very Short Question Answer 1. Who developed IS-LM model? IS-LM model was developed by J.R. Hicks in 1937 A.D. 2. Define IS curve. IS curve is defined as the locus various combinations of rate of interest and level of income which gives product market equilibrium. 3. Define LM curve. LM curve is the locus of […]

Chapter 2: National Income Accounting

Very Short Question Answer 1. What is meant by two sector economy? The economy which consists of only household and business sectors is called two sector economy. This is hypothetical concept. This is also known as the two sector closed economy. 2. Define the meaning of three sector economy. The economy which consists of household, […]

Chapter 1- Introduction to Macroeconomics

Very Short Question Answer 1. What is Macroeconomics? Macroeconomics is the branch of economics which deals with economy as a whole. In other words, it is the study very large economy-wide aggregate variables like national income, money, price level, unemployment, economic growth rates etc. 2. Point out the scope of microeconomics. The scope of macroeconomics […]

Chapter 7: Law of Company and Insolvency Arbitration

Very Short Question Answer 1. What includes by a special resolution? A special resolution includes: Increase of authorized capital of the company. Decrease of share capital. Conversion of company from private to public or public to private company. Amalgamation or merger of company. Issue of Bonus share Change of name and objectives of the company. […]

Chapter 1: Introduction to Business Environment

Very Short Questions Answers 1. Define business environment. Business environment is combination of all the factors that influence a business activity. It consists of the internal and external forces prevalent in the environment, which have a bearing on the development, performance and outcomes of a business organization. 2. Define task environment. Task environment refers to […]

Chapter 6: Accounting for Cash and Internal Control

Accounting for Cash and Internal Control Very Short Question Answer  Write about Not Sufficient Fund (NSF) cheque. A cheque that a bank refuses to honor because there is not enough money in the payer’s checking account to cover the amount of the check is written as not sufficient fund (NSF) cheque. A NSF cheque is […]

Chapter 4: Accrual Basis of Accounting

Accrual Basis of Accounting Very Short Question Answer The financial position of Kalika & Bros. on Baishakh 01, 2076 is as below: Cash in hand: Rs.20,000 Furniture: Rs.50,000 Accounts receivable: Rs.74,000 Outstanding expenses: Rs.4,000 Cash at bank: Rs.36,000 Accounts payable: Rs.34,000 Stock of goods: Rs.26,000 Prepaid expenses: Rs.8,000 Required: Opening entry SOLUTION   The following […]