BASICS OF ACCOUNTING

The art of recording all business transactions in a systematic manner in a set of books is called-
(a) Accounting
(b) Book – keeping
(c) Ledger
(d) None of these.

a
b
c
d

The process of recording, classifying and summarizing all business transactions in order to know the financial result is called –
(a) Book – keeping
(b)Accounting
(c) Journalizing
(d) None of these.

a
b
c
d

Cash, goods or assets invested by the proprietor in the business for earning profit is called-
(a) Profit
(b) Capital
(c) Fixed assets
(d) None of these.

a
b
c
d

EXPLAIN THE FOLLOWING TERMS

The sum of Liabilities and Capital is-
(a) Expense
(b) Income
(c) Drawings
(d) Assets.

a
b
c
d

The amount drawn by businessmen for his personal use is-
(a) Capital
(b) Drawings
(c) Expenditure
(d) Loss.

a
b
c
d

The Mathematical Expression defining the comparative relationship between Assets and Liabilities of any person, institution or Business concern is called-
(a) Accounting
(b) Accounting Equation
(c) Book – keeping
(d) None of these.

a
b
c
d

Liabilities and Assets amount to Rs. 50,000 and Rs. 7,800 respectively. The difference Amount shall represent-
(a) Creditors
(b) Debentures
(c) Profit
(d) Capital.

a
b
c
d

The basis of recording transactions is-
(a) Vouchers
(b) Profit
(c) Order form
(d) Quotation list.

a
b
c
d

DOES ACCOUNTING RECORD THE QUALITY OF PRODUCT?
NO
YES

............................IS A DOCUMENTARY PRROF OF A TRANSACTION
CAPITAL
VOUCHER
DEBTORS
LEDGER

.......................ARE THE PERSONS TO WHOM GOODS AND SERVICES ARE SOLD ON CREDIT BY A BUSINESS
CREDITORS
DEBTORS
ASSETS
MACHINE

"A BUSINESS WILL RUN ENDLESSLY" WHICH CONCEPT OF ACCOUNTING STATES THIS
ENTITY CONCEPT
COST CONCEPT
GOING CONCERN CONCEPT
PERIOD CONCEPT

"AN ASSET IS TO BE RECORDED AT THE PRICE AT WHICH IT IS ACQUIRED" WHICH CONCEPT STATES THIS?
COST CONCEPT
PERIOD CONCEPT
ENTITY CONCEPT
MONEY MEASUREMENT CONCEPT

1.What type of transactions do we record in the books of accounts? 

A. Monetary nature 

B. Cash nature 

C. Political nature 

D. Social nature 

a
b
c
d

The main purpose of accounting is to give a ________ view of accounting. 

A. Biased 

B. Inadequate 

C. True and Fair 

D. All of these 

a
b
c
d

Where ________ ends then ________ begins. 

A. Finance and Accounting 

B. Book keeping and Accounting 

C. Accounting and Book keeping 

D. Book keeping and Finance 

a
b
c
d

The person from whom goods are purchased on credit is known as ________. 

A. Owner 

B. Debtor 

C. Investors 

D. Creditor

a
b
c
d

Accounting is helpful in replacing the ________. 

A. Method 

B. Material 

C. Money 

D. Memory 

a
b
c
d

Which of the following does not represent a business transaction? 

A. Capital introduced in the business 

B. Goods are sold on credit 

C. Assets sold and money introduced in the business 

D. Efficiency of Management 

a
b
c
d

Which one is not the step of accounting 

A. Interpretation 

B. Classifying the recorded entries 

C. Recording in the book of accounts 

D. Window Dressing 

a
b
c
d

REVENUE MINUS EXPENSES=?
PROFIT/LOSS
CAPITAL
DEBTORS
DRAWINGS

MATCH THE FOLLOWING
OWNER AND BUSINESS ARE DISTINCT.
ARTICLES IN WHICH BUSINESS USUALLY DEALS
INTANGIBLE PATENTS
TANGIBLE ASSETS
ECONOMIC EXCHANGE
REVENUE EXPENSES WHOSE BENEFITS WILL ACCRUE FOR MORE THAN ONE ACCOUNTING PERIOD
CONVERTIBLE INTO CASH WITHIN TWELVE MONTHS
TRANSACTIONS
CURRENT ASSETS
GOODS
ACCOUNTING FICTION THEORY
GOODWILL ,TRADEMARK AND PATENTS
MACHINERY AND BUILDINGS
DEFERRED REVENUE EXPENDITURES