ICSE Class 10

General instructions: Answer all questions. Marks are shown in brackets [ ].

Objective

1. 1.
   Which of the following represents a direct benefit that internal stakeholders gain from a business?

   1. A. Regular payment of interest on loans
   2. B. Employment, ownership, or investments in the organization
   3. C. Timely delivery of raw materials
   4. D. Compliance with government regulations
   [1]
2. 2.
   When an organization deals with the government, identify which of the following will be true: I The government expects organizations to pay taxes. II The government enforces laws and regulations. III The government is considered an internal stakeholder. IV The government expects organizations to follow compliance requirements.

   1. A. I and III are true
   2. B. I and IV are true
   3. C. II and IV are true
   4. D. I, II, and IV are true
   [1]
3. 3.
   Which of the following is an example of an external stakeholder in an organization?

   1. A. Employees working in the production department.
   2. B. Shareholders investing in the company.
   3. C. Suppliers providing raw materials to the organization.
   4. D. Managers overseeing daily operations.
   [1]
4. 4.
   Respect for intellectual property rights is an expectation of:

   1. A. Competitors
   2. B. Creditors
   3. C. Society
   4. D. Government
   [1]
5. 5.
   A business failed to disclose its actual financial position to a financial institution while applying for a loan. The funds were later misused, and the company defaulted on the interest payment. Which key expectation of creditors/financial institutions is being violated in this case?

   1. A. Regular payment of dividends to shareholders
   2. B. Disclosure of factual financial position
   3. C. Increasing market share through promotions
   4. D. Providing safe working conditions for employees
   [1]
6. 6.
   When a supplier delivers goods to an organization, identify which of the following will be true: I The supplier expects timely payments. II The supplier becomes an internal stakeholder. III The supplier expects transparency and fair dealings. IV The supplier directly participates in decision-making within the organization.

   1. a. I and II are true
   2. b. II and IV are true
   3. c. I and III are true
   4. d. III and IV are true
   [1]
7. 7.
   When a supplier interacts with an organization, identify which of the following will be true : I Suppliers expect timely payments for goods and services. II Suppliers influence the organization's public image. III Suppliers are considered external stakeholders. IV Suppliers directly manage the organization's operations.

   1. A. I and II are true
   2. B. I and III are true
   3. C. II and IV are true
   4. D. III and IV are true
   [1]
8. 8.
   Which of these is an expectation of employees?

   1. A. Fair working conditions
   2. B. Credit facility
   3. C. Advertisement
   4. D. Regular supply
   [1]
9. 9.
   XYZ Ltd. plans to launch a ₹50 lakh advertising campaign whose benefits will last three years. How should this expenditure be classified, and which accounting principle applies?

   1. A. Revenue expenditure; Materiality Principle
   2. B. Deferred Revenue Expenditure; Matching Principle
   3. C. Capital expenditure; Consistency Principle
   4. D. Operating expenditure; Prudence Principle
   [1]
10. 10.
    A company planned for high production but did not forecast sufficient sales, leading to overstocking and storage issues. Which budget should have been prepared more accurately?

    1. a. Cash Budget
    2. b. Sales Budget
    3. c. Purchase Budget
    4. d. Master Budget
    [1]