Tag: commercial applications

Quizzes (170) Questions (1551)

Questions Related to commercial applications

Multiple choice commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

Which of the following should not be called 'Sales'?

  1. Office fixtures sold

  2. Goods sold for cash

  3. Goods sold on credit

  4. Sale of item previously included in 'Purchases'
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The term 'Sales' is reserved for the sale of goods in which the business deals in the ordinary course of business. Office fixtures are fixed assets, not trading goods, so their disposal is recorded as a sale of an asset rather than 'Sales'.

Multiple choice commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

______ is used by business entities for keeping records of their monetary or financial transaction.

  1. Accounting

  2. Cost accounting

  3. Costing

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

Accounting is the systematic process of identifying, measuring, recording, classifying, and summarizing financial transactions. It serves as the primary system for maintaining financial records.

Multiple choice commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

Accounting records only those transactions and events which are of -
X. Social character
Y. Financial character
Select the correct answer from the options given below:

  1. X only

  2. Y only

  3. Both X and Y

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

Accounting records only those transactions & events in terms of money which are of a financial character. Transactions which are not of a financial character are not recorded in the books of account.

Multiple choice commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

________ is the language of business and used to communicate financial and other information to different interested parties like creditors, investors, researchers, governments etc.

  1. Accounting

  2. Cost Accounting

  3. Costing

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

Accounting is widely referred to as the language of business because it provides a standardized way to communicate financial performance and position to various stakeholders.

Multiple choice commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

Which of the following account is tangible real account _____________.

  1. Patent

  2. Goodwill

  3. Machinery

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

Real accounts relate to assets. Tangible real accounts represent assets that have a physical existence, such as machinery, cash, or inventory. Patents and goodwill are intangible real accounts.

Multiple choice commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

Wages and other benefits, provided to assembly line workers and operators of machine are classified under ________________.

  1. work in process costs

  2. finished costs

  3. direct manufacturing labour costs

  4. indirect manufacturing labour costs
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Wages and benefits for workers directly involved in manufacturing on the assembly line are classified as direct manufacturing labour costs. These costs can be easily and cost-effectively traced to the creation of specific products. Indirect labour, by contrast, involves support staff whose work cannot be directly linked to a single unit.

Multiple choice commercial applications generally accepted accounting principles (gaap) acccounting cycle meaning, need and objectives of accounting accounting process

Accounting is a substitute of ________ .

  1. Recording

  2. Book-keeping

  3. Memory

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

During 1500 A.D., accounting was used by business firms for recording transactions related to business.

Substitute of memory− As, it is beyond human capabilities to remember each and every business transaction, so accounting plays an important role in recording these transactions in the book of accounts.