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Business and Commerce Fundamentals Flashcards

6 cards from real ICET practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Business and Commerce Fundamentals flashcards as text

  1. Which inventory costing method assumes the oldest inventory items are sold first?

    Answer: FIFO

    FIFO (First In, First Out) assumes the oldest inventory items are used or sold first.

  2. What is the primary goal of financial management in a business?

    Answer: Maximizing shareholder wealth

    The primary goal of financial management is to maximize shareholder wealth through sound financial decisions.

  3. Which of the following is a direct tax?

    Answer: Income tax

    Income tax is a direct tax levied directly on individuals or organizations based on their earnings.

  4. What does 'depreciation' mean in accounting?

    Answer: Systematic allocation of asset cost over its useful life

    Depreciation is the systematic allocation of a fixed asset's cost over its useful life.

  5. A company's current ratio is 2.5:1. What does this indicate?

    Answer: $2.50 in current assets for every $1 of current liabilities

    A current ratio of 2.5:1 means the company has $2.50 in current assets per $1 of current liabilities, indicating strong short-term liquidity.

  6. What is 'opportunity cost' in economics?

    Answer: The value of the next best alternative foregone

    Opportunity cost is the value of the next best alternative given up when making a choice.

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  1. cets.apsche.ap.gov.in — Eligibility, fees, exam format, passing score, time limit, score validity · verified Oct 2026