Explanation

Surplus: Income > Expenditure

• Example: Government collects $1000 in revenue, spends $900 → Surplus $100

Additional information:

• Deficit Budget: Expenditure > Income

Last verified on 18-01-2026

Explanation

Revenue Income: Money earned from regular operations, e.g.,

1. Sale of old newspapers
2. Membership fees
3. Donations for regular activities
4. Workshop fees
5. Interest on bank deposits related to operations

Last verified on 18-01-2026

Explanation

Higher productivity lowers costs and improves efficiency, giving the company a competitive edge.

It helps the management strengthen market position and profitability.

Explanation

Explanation

Current ratio = Current Assets ÷ Current Liabilities.

A ratio of 1 means current assets equal current liabilities.

Net working capital = Current Assets − Current Liabilities; thus, it will be zero.

Explanation

The Quick Ratio, also called the Acid-test Ratio, measures a company’s ability to meet its short-term liabilities with its most liquid assets, excluding inventory.

Explanation

In the primary market, new securities are issued and sold to investors for the first time.

It helps companies raise capital directly from investors for business expansion or projects.

Explanation

Finance is essential for all business activities, as it provides the funds needed for planning, production, marketing, and research.

It supports product pricing, marketing channel design, and marketing research, ensuring smooth operations and profitability.

Explanation

Product costs include all costs incurred to produce a product, such as direct materials, direct labor, and manufacturing overhead.

Selling and general expenses are period costs, not part of product costs.

Explanation

Financial management ensures that a firm has sufficient funds to acquire and maintain its assets.

Proper funding of assets is essential for smooth operations and value creation.