: Basic Accounting
Here we will introduce you to some basic accounting principles, accounting concepts, and accounting terminology.
1. Accounting is defined as ?
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 ?
3. Accounting is also defined as an 'Information System' because ?
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 ?
Answer: A. The art of recording,classifying and summarizing the business transactions in monetary units
5. Accounting is the process of matching
Answer: B. Revenues and Costs
6. Choose the correct statement
Answer: B. Accounting is concerned with monetary transactions
7. Which of the following event is subject matter of Accounting ?
Answer: C. Payment of Rs.10,000 to bank in discharge of outstanding loan
8. Choose the incorrect statement
Answer: B. Transaction are recorded in quantitative terms only
Answer: B. Is accounting for future
10. Which of the following is not available in the Financial Statements of a Company ?