Basic Accounting Questions and Answers Quiz

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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)

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poja 3 months ago

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Harshal Gaikwad 4 months ago Reply

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


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UMESHA HIREMATH 1 year ago Reply

Good ha


Sushmita 1 year ago Reply

This Quiz is too good for accounting students


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