Tag: elements of accounts

Questions Related to elements of accounts

_________ is not an advantage of computerised accounting system.

elements of accounts computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

  1. Speed

  2. Cost of Training

  3. Accuracy

  4. Up-to-Date Information

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Correct Option: B
Explanation:

The advantages of computerised accounting system are speed, accuracy and up-to-date information, whereas cost of training is a limitation of computerised accounting system.

___________ is one of the four basic requirements under use of computers in any database oriented application, where an integrated set of objects constitute the report.

elements of accounts computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

  1. Front-end Interface

  2. Reporting System

  3. Back-end Database

  4. Data Processing

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Correct Option: B
Explanation:

Steps involved in designing accounting reports :-

1.Definition of objectives 

2.Structure of the report 

3.Querying with the database

4.Finalizing the report 

Therefore Reporting System is an integrated set of objects that constitute the report.

The identification of transactions, based on application of accounting principles is common to _________ accounting system.

elements of accounts computerised accounting system accounting systems - manual and computerized difference between manual and computerised accounting meaning and importance of computerised accounting system

  1. manual

  2. computerised

  3. Both (a) and (b)

  4. None of the above

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Correct Option: C
Explanation:

Identifying is one of the activities in the context of comparison between manual and computerised accounting system. The identification of transactions, based on application of accounting principles is, common to both manual and computerised accounting system.

What is done as per the basic concepts of accounts?

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Book keeping

  2. Accounting

  3. Preparation of balance sheet

  4. None of the above

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Correct Option: A
Explanation:

Book-keeping is the basis for accounting. It is because it is responsible for the proper recording of financial transactions.

Accounting begins with book keeping and ends with preparation of financial accounts.

Which of the following highlights the correct order of the stages in the accounting cycle?

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Journalizing, final accounts, posting to the ledger and trial balance

  2. Journalizing, posting to the ledger, trial balance and final accounts

  3. Posting to the ledge, trial balance, final accounts and journalizing

  4. Posting to the ledger, journalizing, final accounts and trial balance

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Correct Option: B

______ refers to the specific accounting principles and the methods of applying those principles adopted by the enterprise in the preparation and presentation of financial statements.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Accounting methods

  2. Accounting policies

  3. Accounting concepts

  4. Accounting assumptions

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Correct Option: B

Trademark is ______________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Tangible account

  2. Intangible account

  3. Fictitious asset

  4. Nominal account

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Correct Option: B

Purposes of an accounting system include all the following except ___________________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Interpret and record the effects of business transaction

  2. Classify the effects of transactions to facilitate the preparation of reports

  3. Summerize and communicate information to decision makers

  4. Dictate the specific types of business enterprise transactions that the enterprises may engage in.

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Correct Option: D

If the change in accounting policy has no material effect in current period but which is reasonably expected to have a material effect in later periods __________________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. The amount of changes should be disclosed.

  2. The fact of change should be disclosed.

  3. The fact of changes should not be disclosed.

  4. None of these

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Correct Option: B

IMF augments its resources by borrowing under ________________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. General arrangements to borrow

  2. New arrangements to borrow

  3. Trust funds

  4. All the above

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Correct Option: D