Tag: commercial applications

Quizzes (170) Questions (1551)

Questions Related to commercial applications

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

________ is the recording phase of Accounting system.

  1. Book keeping

  2. Ledger posting

  3. Balancing

  4. Accounting
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

All financial transactions must be recording in the books of accounts of the business. Recording of transaction is the first steps in the accounting system. If any expense is incurred, this has to be recorded first to initiate the accounting process.

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Book keeping is mainly concerned with which of the following features?

  1. It is concerned with financial data recording.

  2. It is concerned with designing the systems of recording, classifying and summarizing the recorded data.

  3. It is concerned with data interpreting for internal and external users.

  4. all of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Book keeping and accounting terms are normally used as interchangeably but actually this is not the case. Book keeping is basically concerned with recording of a transaction in books of account of any business. It is to be noted that only financial data are to be recorded.

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Which of the following is not dependent on accounting?

  1. Management accounting

  2. Cost accounting

  3. Financial accounting

  4. Book-keeping
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Book Keeping and Accounting are two different terms which are often used interchangeably. 

Book keeping is a method of recording all the business transactions. This work is normally performed by the junior executive. 
Accounting is a term which analyze and interpret the data which are recorded in the books of accounts through book keeping. 

Accounting starts when book keeping ends hence book keeping is not dependent on accounting. 

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Financial statements are a part of ___________.

  1. accounting

  2. book-keeping

  3. all of the above

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Financial Accounting is a process of classifying, summarizing and interpreting the financial information recorded in the books of account. Financial statements are prepared to know the financial position of the organization. 

Its part of accounting. 

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Which of the following is not a sub-field of accounting?

  1. Management accounting.

  2. Cost accounting.

  3. Financial accounting.

  4. Book-keeping.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
The Main Branches or Types or Sub-fields of Accounting include inflation accounting, financial accounting, Human resource accounting, managerial accounting, Social Responsibility Accounting, cost accounting, Tax or value-added accounting. 
Book-keeping is the recording of financial transactions and is part of process of accounting, not a sub field of accounting.

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Which of the following statement is correct?

  1. Fixed assets must always be shown at market value

  2. Book-keeping and accounting are different terms
  3. Owner's Equity $=$ Assets + Liabilities

  4. Patents is an example of current asset
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Book Keeping and accounting are different terms. Book Keeping and Accountancy are often used interchangeably but these are not identical. Book keeping is an art , accountancy is a science. The work of book keeping is handled by the junior staff  whose primary responsibility is to record all the transactions in various books maintained by the business. The information contain in these books itself doe not provide any financial position until these information is analyse and interpreted in a logical manner. This task is done by the accountants. 

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

In which year was the Chartered Accountants Institute was set up ?

  1. 1947

  2. 1948

  3. 1949

  4. 1950
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It was established on 1 July 1949 as a statutory body under the Chartered Accountants Act, 1949 enacted by the Parliament (acting as the provisional Parliament of India) to regulate the profession of Chartered Accountancy in India. ICAI is the second largest professional Accounting & Finance body in the world.

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Which among the following constitutes the base of accounting?

  1. Book-keeping

  2. Posting

  3. Analyzing

  4. None of above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Book Keeping is the primary function of accounting. More often, the term book keeping and accountancy are used interchangeably but that is not correct. Book keeping and accountancy are two different terms. 


Book Keeping is generally mean recording of all business transactions. This task is performed by the junior staff of the organization. 
Accounting starts only when the book keeping is done. This task is performed by the senior accountants. Book keeping is the base of accounting. 

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Book keeping is ________.

  1. science

  2. art

  3. both A & B

  4. literature
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Book keeping is the science and art of recording transactions in money or money's worth so accurately and systematically that the true state of a businessman's affairs can be carefully ascertained. 

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

What is done as per the basic concepts of accounts?

  1. Book keeping

  2. Balancing

  3. Casting

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

There are various accounting concept on which the whole accounting system is based. These are known as accounting concepts and conventions. Book keeping is done on the basis of these accounting concept. Main concepts are:

1) Separate Entity Concept
2) Going Concern Concept
3) Periodicity Concept
4) Cost Concept
5) Matching Concept
6) Revenue Recognition Concept
7) Money Measurement Concept
8) Dual Aspect Concept.