Tag: elements of accounts

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Questions Related to elements of accounts

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

__________ is used primarily for control of spare parts.

  1. ABC Analysis

  2. JIT Inventory System

  3. VED Analysis

  4. Perpetual Inventory System
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

VED analysis stands for Vital, Essential, and Desirable. It is specifically used for the control of spare parts based on the criticality of the item to the production process.

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

What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme?

  1. Rs.20 lacs

  2. Rs.10 lacs

  3. Rs.50 lacs

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

Under the GST composition scheme, the threshold limit for turnover in the preceding financial year was historically set at Rs. 50 lacs for certain categories, though it has been revised over time. Given the options, 50 lacs is the standard reference point for this specific question context.

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

Following information is available of PQR for year ended March, 20XX: 4, 000 units in process, 3, 800 units output, 10% of input is normal wastage, Rs 2.50 per unit is scrap value and Rs 46, 000 incurred towards total process cost then amount on account of __________.

  1. Rs 2, 500

  2. Rs 2, 000

  3. Rs 4, 000

  4. Rs 3, 500
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

Internal reconstruction can be done by __________.

  1. Alteration of share capital

  2. Reduction of share capital

  3. Issue of share capital

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
The methods given below are generally employed to effect the internal reconstruction process:
  • Alteration of Share Capital.
  • Sub-division and Consolidation of Shares.
  • Conversion of shares into stock or stock into shares.
  • Variation of Shareholder's rights.
  • Reduction of Share Capital.
  • Compromise/Arrangement.
  • Surrender of Shares.
Multiple choice elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

Modern Method of Accounting was introduced by _____________.

  1. M. S. Gosav

  2. Wheldon

  3. Luca Pacioli

  4. R. N. Carter
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The first book on double entry system was written by an Italian mathematician Fra Luca Pacioli and his close friend Leonardo da Vinci. The book was entitled as “Summa de arithmetica, geometria, proportioni et proportionalita” and was first published in Venice in 1494.

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

Book-keeping is often confused with _____________.

  1. Algebra

  2. Statistics

  3. Cashier

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

Book Keeping and Accountancy are often used interchangeably, but it is not true. These two terms are not identical. Book Keeping is an art but the accountancy is a science. Book keeping is usually done by the junior employees of the organization where he records the transactions in books of accounts i.e. journal and ledger. But information recorded in books does not give any idea about the financial position of the company. 


Hence in order to make a judgement regarding the financial position of the concern, the recorded information has to be analysed and interpreted where accountancy comes in the picture.

 

Therefore, this can be said that where book keeping ends, accountancy starts.

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

Valuation is _______________.

  1. Sophisticated guess work

  2. An exact science

  3. Not related to the future

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

Valuation involves estimating the worth of assets or businesses. Because it relies on assumptions, forecasts, and market conditions, it is considered sophisticated guesswork rather than an exact science.

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

The statistical yardstick that provides a measure of the relationship between two accounting figures is _____________.

  1. The accounting ratio

  2. Capital output ratio

  3. A current ratio

  4. Pay out ratio
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A Ratio is a statistical Yardstick to measure relationship between two accounting figures.It is very useful for the investors, suppliers, creditors. It is used as a mirror to reflect financial status of a particular company or group of company, firms, business houses.

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

A) Low gearing is preferable to high gearing
B) 'Acid test' denotes liquidity
Of these:

  1. Both (a) and (b) are true

  2. Both (a) and (b) are false

  3. (a) is true but, (b) is false

  4. (a) is false but (b) is true
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

a) A gearing ratio higher than 50% is typically considered highly levered or geared. As a result, the company would be at greater financial risk, because during times of lower profits and higher interest rates, the company would be more susceptible to loan default and bankruptcy.

b) The acid-test ratio is used to indicate a company's ability to pay off its current liabilities The higher the ratio, the better the company's liquidity and overall financial health. A ratio of 2 implies that the company owns $2 of liquid assets to cover each $1 of current liabilities.

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

"Book-keeping is the science and art of correctly recording in the books of accounts, all those business transactions that result in transfer of money or money's worth" is the definition given by ___________.

  1. Northcott

  2. R.N.Carter

  3. Spicer and Peglar

  4. J.R.Batliboi
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Book-keeping is an art and science of recording business transactions in the appropriate books of accounts in accordance with the principles of accountancy for the purpose of ascertaining the profits or losses and the financial position of the business. Every businessman wants to know the profits of his business for a certain period. In order to ascertain the profits and loss of the business, he has to remember all the transactions of his business for a defined period of time. The system which is derived to record all the business transactions is known as book-keeping. According to R.N.Carter, "Book-keeping is the science and art of correctly recording in the books of accounts of all those business transactions that result in the transfer of money or money's worth".