BSEB Matric Commerce flashcards
BSEB Matric Commerce · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Business
- An economic activity of producing or exchanging goods and services with the aim of earning profit by satisfying human wants; it involves risk and uncertainty of returns.
- Auxiliaries to trade
- Services that assist trade without producing goods: transport, banking, insurance, warehousing, advertising and packaging. They remove hindrances of place, finance, risk, time and information.
- Entrepot trade
- Import of goods from one country and their re-export to another country, usually after processing or repacking. Also called re-export trade and counted as external trade.
- Sole proprietorship
- A business owned, managed and financed by one person, who enjoys all profits and bears unlimited personal liability. It has no separate legal entity and few legal formalities.
- Partnership
- A relation between persons who agree to share profits of a business carried on by all or any of them acting for all, governed by the Indian Partnership Act 1932.
- Joint stock company
- An artificial person created by registration with separate legal entity, perpetual succession, limited liability of members and a common seal; managed by a board of directors.
- Cooperative society
- A voluntary association of at least ten adult members registered under a Cooperative Societies Act, run on service motive with one member one vote and limited return on capital.
- Accounting equation
- Assets equal liabilities plus capital. Every transaction affects at least two elements so that the equality of both sides is always preserved.
- Golden rules of accounting
- Debit the receiver and credit the giver for personal accounts; debit what comes in and credit what goes out for real accounts; debit expenses and credit incomes for nominal accounts.
- Compound journal entry
- A single journal entry recording more than two accounts, with total debits equal to total credits. It saves time when several accounts are affected by one transaction.
- Trade discount
- A reduction allowed by a seller on the list price to a buyer, usually a wholesaler. It is deducted on the invoice and not recorded separately in the books.
- Ledger
- The principal book of accounts in which all transactions are classified under individual account heads, with debit and credit sides, after posting from the journal.
- Trial balance
- A statement listing debit and credit balances of ledger accounts on a date to check arithmetical accuracy. It cannot detect errors of principle or complete omission.
- Gross profit
- Excess of net sales over cost of goods sold, shown by the Trading account. Cost of goods sold equals opening stock plus purchases plus direct expenses minus closing stock.
- Balance sheet
- A statement of assets, liabilities and capital on a particular date, prepared after the Trading and Profit and Loss account, showing the financial position of the business.
- Suspense account
- A temporary account opened to record the difference in the trial balance. It is closed when the errors causing the difference are located and rectified.
- Simple interest
- Interest calculated only on the original principal for the whole period, using the formula P × R × T divided by 100, where T is in years.
- Compound interest
- Interest calculated on the principal plus interest already earned, so the amount grows as P(1 + R/100)^n and interest equals amount minus principal.
- Median
- The middle value of a series arranged in ascending or descending order. For an even number of observations it is the average of the two middle values.
- Mode
- The value that occurs most frequently in a series. A series may have one mode, more than one, or no mode at all.
- Consumer
- A person who buys goods or hires services for consideration for personal use, excluding goods purchased for resale or for a commercial purpose.
- AGMARK
- A standardisation mark issued under the Agricultural Produce (Grading and Marking) Act, certifying the quality and grade of agricultural products such as ghee, spices and pulses.
- Cash memo
- A written record of a sale showing goods, quantity, price and date, given by the seller to the buyer. It serves as proof of purchase in a consumer complaint.
- Consumer Protection Act 2019
- Indian law replacing the 1986 Act, creating the Central Consumer Protection Authority and three-tier commissions, and covering product liability, misleading advertisements and e-commerce.
- District Consumer Commission
- The first-tier redressal forum under the Consumer Protection Act 2019, hearing complaints where the value of goods or services paid does not exceed fifty lakh rupees.
- Product liability
- The responsibility of a manufacturer, product seller or service provider to compensate a consumer for harm caused by defective goods or deficient services under the 2019 Act.
- Entrepreneur
- A person who identifies an opportunity, arranges land, labour and capital, starts an enterprise, bears the risk of loss and takes the profit as reward.
- Business plan
- A written document describing the product or service, target market, competition, operations, finance and projected profit of a proposed or existing venture.
- MSME
- Micro, small and medium enterprises, classified in India by limits on investment in plant and machinery and annual turnover, eligible for concessional credit and government support.
- Repo rate
- The rate at which the Reserve Bank of India lends short-term funds to commercial banks against securities. Raising it reduces liquidity and controls inflation.
- Principle of indemnity
- In general insurance the insured is restored to the same financial position as before the loss, never better off. It does not apply to life insurance.
- Business environment
- The sum of internal and external factors such as economic, social, political, legal, technological and natural conditions that affect the working of a business.