Basic Accounting Questions and Answers Quiz

Related Topics:

Miscellaneous : Basic Accounting

Here we will introduce you to some basic accounting principles, accounting concepts, and accounting terminology.
1. Accounting is defined as ?
[A] An art of recording,classifying and summarizing in a significant manner and in terms of money,transactions and events which are in part at least,of a financial character and interpreting the results thereof.
[B] A systematic and regular record of events clear financial picture
[C] A method of ascertaining profits & loss
[D] Noting but book keeping

Answer: A. An art of recording,classifying and summarizing in a significant manner and in terms of money,transactions and events which are in part at least,of a financial character and interpreting the results thereof.

2. What is the method of summarizing and classifying the record of financial transaction in monetary terms ?
[A] Book keeping
[B] Auditing
[C] Accountancy
[D] Cost Accounting

Answer: C. Accountancy

3. Accounting is also defined as an 'Information System' because ?
[A] The function of accounting is to provide quantitative information,primarily financial in nature about economic entities
[B] It is a system which provides information
[C] Accounting provides required information for anyone seeking it
[D] All of above

Answer: A. The function of accounting is to provide quantitative information,primarily financial in nature about economic entities

4. Accounting in modern age is regarded as ?
[A] The art of recording,classifying and summarizing the business transactions in monetary units
[B] The language of business
[C] The source of business information
[D] All of above

Answer: A. The art of recording,classifying and summarizing the business transactions in monetary units

5. Accounting is the process of matching
[A] Benefits and Costs
[B] Revenues and Costs
[C] Cash inflows and outflows
[D] Potential and real performance

Answer: B. Revenues and Costs

6. Choose the correct statement
[A] Keeping systematic recording of business transaction is not the function of financial accounting
[B] Accounting is concerned with monetary transactions
[C] Accounting is concerned with past as well as future events
[D] Business and Businessman are one and the same from accounting point of view

Answer: B. Accounting is concerned with monetary transactions

7. Which of the following event is subject matter of Accounting ?
[A] Death if key executive of the business/company
[B] Strike of workers
[C] Payment of Rs.10,000 to bank in discharge of outstanding loan
[D] Marriage of the daughter of the Managing Director of the Company

Answer: C. Payment of Rs.10,000 to bank in discharge of outstanding loan

8. Choose the incorrect statement
[A] Accounting is the language of business
[B] Transaction are recorded in quantitative terms only
[C] Accounting is the art of recording,classifying and summarizing
[D] Transaction and events of financial character are subject matter of accounting

Answer: B. Transaction are recorded in quantitative terms only

9. Management Accounting
[A] Is a clerical work
[B] Is accounting for future
[C] Is a recording technique of the management related transactions
[D] Is an analysis of the past business activities

Answer: B. Is accounting for future

10. Which of the following is not available in the Financial Statements of a Company ?
[A] Total Sales
[B] Total Profit and Loss
[C] Loss from Fire
[D] None of above

Answer: D. None of above


Comments: (Your feedback is valuable to us)

Harshal Gaikwad 1 month ago Reply

Thank you. It is really helpful those who are from commerce stream.


Marion 2 months ago Reply

Very helpful. Thank you.


vijaya 4 months ago Reply

super


sakib 9 months ago Reply

gud


cathy 9 months ago Reply

Helpful:)


UMESHA HIREMATH 10 months ago Reply

Good ha


Sushmita 10 months ago Reply

This Quiz is too good for accounting students


rajendra prasa 11 months ago Reply

Very good and appreciable


Zeeshan ahmed 11 months ago Reply

Helpfull ..


muhereza 1 year ago Reply

This is good


aneesh gold 1 year ago Reply

good


;