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100+ Free AP Intermediate Commerce (BIEAP) Practice Questions

Board of Intermediate Education Andhra Pradesh Intermediate Commerce & Accountancy (Commerce I / Commerce II / Accountancy) practice questions are available now; exam metadata is being verified.

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2026 Statistics

Key Facts: AP Intermediate Commerce (BIEAP) Exam

~3 hours

Typical duration of each Intermediate Commerce theory paper under BIEAP

BIEAP Intermediate Public Examination pattern and timetable practice

~100 marks

Typical maximum marks scale for Intermediate Commerce theory in CEC/MEC pattern notes (confirm your blueprint)

BIEAP exam pattern summaries and blueprints

~35%

Usual minimum percentage required to pass Intermediate Commerce theory

BIEAP Intermediate examination pass-mark practice

CEC / MEC

Common Intermediate combinations that include Commerce

BIEAP Intermediate subject combinations

Written, not MCQ

Official papers use constructed-response sections; this bank is an English MCQ study adaptation only

BIEAP model papers and blueprints

FREE 2026

OpenExamPrep practice bank for BIEAP Intermediate Commerce concept and calculation fluency

OpenExamPrep

Free 100-question English MCQ study bank for BIEAP Intermediate Commerce and Accountancy. Official exams are ~3-hour written theory papers (~100 marks for Commerce in typical pattern notes), pass about 35%, fee part of Intermediate exam fees notified by BIEAP. Covers journal, ledger, trial balance, final accounts, depreciation, partnership, company accounts intro, business organisation, banking, and insurance. Not an official MCQ-format simulation. Sources: bie.ap.gov.in syllabus, blueprints, and model papers.

Sample AP Intermediate Commerce (BIEAP) Practice Questions

Try these sample questions to test your AP Intermediate Commerce (BIEAP) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following best defines a business as used in Intermediate Commerce?
A.An economic activity involving production, exchange, distribution or sale of goods and services with the objective of earning profits
B.Any activity done without an intention to earn income
C.Only manufacturing of goods in a factory
D.Only buying and selling of shares on a stock exchange
Explanation: In BIEAP Intermediate Commerce, business is an economic activity concerned with production, exchange, distribution and sale of goods and services with the objective of making profits. It is broader than manufacturing alone and is distinct from non-economic activities done without an income motive.
2Which of the following is a characteristic feature of a sole proprietorship?
A.Separate legal entity distinct from the owner
B.Unlimited liability of the owner for business debts
C.Compulsory registration under the Companies Act, 2013
D.Minimum of two members required to start the firm
Explanation: In a sole proprietorship, the owner and the business are the same person in law. The proprietor has unlimited liability, meaning personal assets can be used to settle business debts. There is no separate legal entity and no requirement for company-style registration.
3Under the Indian Partnership Act, 1932, partnership is best defined as the relation between persons who have agreed to:
A.Share the losses of a charity only
B.Hold shares in a public limited company
C.Share the profits of a business carried on by all or any of them acting for all
D.Work as employees of a government department
Explanation: Section 4 of the Indian Partnership Act, 1932 defines partnership as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Mutual agency and profit sharing are core features taught in Intermediate Commerce.
4Which document contains the fundamental conditions under which a company is incorporated, including its name, registered office, objects, liability and capital?
A.Articles of Association
B.Prospectus
C.Partnership deed
D.Memorandum of Association
Explanation: The Memorandum of Association (MoA) is the charter of the company. It sets out the name, registered office state, objects, liability of members, and capital clause. The Articles of Association deal with internal management rules, while a prospectus invites the public to subscribe for securities.
5Compared with a private company, a public company generally:
A.May invite the public to subscribe for its shares and has freely transferable shares (subject to law and listing rules)
B.Cannot invite the public to subscribe for its shares
C.Has more restrictions on transfer of shares and a lower maximum membership limit
D.Must always have only one member
Explanation: A public company can invite the public to subscribe for its shares and its shares are generally freely transferable (subject to Companies Act and listing rules). A private company restricts share transfer, limits membership, and cannot invite the public to subscribe for its securities.
6In a Joint Hindu Family business governed by Mitakshara law, the person who manages the business is called the:
A.Managing director
B.Karta
C.Company secretary
D.Sleeping partner
Explanation: In a Joint Hindu Family (Hindu Undivided Family) business under Mitakshara law, the senior-most male member traditionally manages the family business and is called the Karta. Other members are coparceners. This form is a distinctive Indian form of organisation taught in Intermediate Commerce.
7The primary objective of a cooperative society is to:
A.Maximise dividend for outside stock-market investors
B.Avoid any form of registration with the state
C.Promote the economic interest of its members through mutual help on democratic principles
D.Restrict membership to a single family only
Explanation: A cooperative society is an association of persons who voluntarily join to promote their common economic interest through mutual help. It is based on democratic control (one member, one vote) rather than capital-power voting. Registration under cooperative law is generally required for a formal cooperative.
8Which of the following is a long-term source of business finance?
A.Trade credit from suppliers payable within 30 days
B.Bank overdraft repayable on demand
C.Outstanding wages for the current month
D.Issue of equity shares
Explanation: Equity share capital is a permanent/long-term source of finance; it is not repayable like a short-term liability in the ordinary course. Trade credit, bank overdraft, and outstanding wages are short-term/current sources or liabilities.
9Minimum subscription in company formation refers to:
A.The minimum amount stated in the prospectus that must be raised on share applications before allotment can proceed as per law
B.The maximum number of directors a company may appoint
C.The lowest salary payable to employees
D.The stamp duty paid on the partnership deed
Explanation: Minimum subscription is the minimum amount of share capital that must be subscribed (and related conditions satisfied) before a company can proceed with allotment of shares, as disclosed in the prospectus and required under company law. It protects the public by ensuring the company has enough capital to commence the intended operations.
10Which of the following best distinguishes trade from commerce?
A.Trade is only manufacturing; commerce is only banking
B.Trade is buying and selling of goods; commerce includes trade plus aids to trade such as banking, insurance, transport and warehousing
C.Commerce excludes all services
D.Trade always requires a joint stock company
Explanation: Trade means buying and selling of goods (home or foreign). Commerce is broader: it includes trade and the aids to trade (transport, banking, insurance, warehousing, advertising, communication) that remove hindrances in the exchange of goods and services.

About the AP Intermediate Commerce (BIEAP) Practice Questions

Verified exam format metadata for Board of Intermediate Education Andhra Pradesh Intermediate Commerce & Accountancy (Commerce I / Commerce II / Accountancy) is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.