Tag: elements of accounts

Quizzes (156) Questions (701)

Questions Related to elements of accounts

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents

Which among the following situation will best explain about issuing debit note to a customer:
A) When the amount payable by buyer to seller increases.
B) Return of goods due to bad quality.
C) When the amount payable by buyer to seller decreases.
D) Goods delivered has charged an extra price.  

  1. A and B

  2. B and C

  3. A and D

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

A debit note is a note which is issued when goods purchased are returned by the purchaser to the vendor or in other words when goods are returned by the buyer to the seller. A debit note signifies that the liability of the buyer has been reduced for payment or expense. Whereas a credit note is a note which is issued by the vendor or seller to the purchaser in respect of return of goods. 

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents

When a buyer returns goods to the seller, he sends a _______ as intimation to the seller of the amount and quantity being returned and requesting the return of money. Whereas when a Seller receives goods (returned) from the buyer, he prepares and sends a _______ as intimation to the buyer showing that the money for the related goods is being returned in the form of a credit note.

  1. Debit note; Credit note

  2. Credit note; Debit note

  3. Cash memo; Credit memo

  4. Debit note; Cash memo
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A debit note is a note which is issued when goods purchased are returned by the purchaser to the vendor or in other words when goods are returned by the buyer to the seller. A debit note signifies that the liability of the buyer has been reduced for payment or expense. Whereas a credit note is a note which is issued by the vendor or seller to the purchaser in respect of return of goods. 

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents

A _______ is a simple official acknowledgment, that the goods or services have been received. It is prepared by the vendor and given to the consumer and is used to show the ownership of the item. 

  1. Receipt

  2. Invoice

  3. Cash memo

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

Receipt is a document that states that a payment against a particular sale of goods or services has been received. It acts as a proof of payment. A receipt contains the details about the person making the payment, amount of the payment made, date of payment, etc.

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents

Which among the following cases a firm issues a credit note to the customer:
A) When the buyer account is overcharged
B) When the buyer returns the goods purchased by him
C) Unit price overcharged or overbilled
D) Product wrongly shipped 

  1. A and C

  2. A and D

  3. B and C

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

Option C (B and C). A credit note is issue when the  customer account is over debited by the buyer. The buyer issues  a credit note and hence the over debit is reduced by issuing a credit note. Over debit may occur when buyer returns the goods or when unit price is overcharged or overbilled. 

Multiple choice elements of accounts origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents

The _________ is a document that a seller passes to a buyer at the time of a specific purchase of goods or services. It is the equivalent of an invoice and is only used to record transactions that are paid for using cash, rather than bank transactions.

  1. Voucher

  2. Invoice

  3. Cash memo

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

Cash Memo. A cash memo is documentary evidence of the payment made. The content of a cash memo and invoice are the same. An invoice is document that is given by the buyer to the purchaser when goods are purchased on credit. 

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

Accounting software is used to perform the function of ________.

  1. auditing

  2. accounting

  3. taxation

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

Accounting software is specifically designed to automate and manage the recording, processing, and reporting of accounting transactions.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

What is a detailed process for recovering information or an IT system in the event of a catastrophic disaster such as a fire or flood?

  1. Disaster recovery plan

  2. Hot site

  3. Cold site

  4. Disaster recovery cost curve
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A disaster recovery plan is a structured approach that describes how an organization can quickly resume work after an unplanned incident.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

Accounting is concerned with recording of ____________ transactions and events.

  1. social

  2. legal

  3. financial

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

Accounting is defined as the process of identifying, measuring, and communicating financial information about an economic entity.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

When would an auditor typically not perform additional tests of a computer systems controls?

  1. When the assessed level of control risk is at a minimum.

  2. When computer controls appear to be strong and risk is at a minimum.

  3. When controls appear to be weak.

  4. When inherent risk is at a maximum.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If controls are weak, an auditor typically performs substantive testing rather than relying on the controls, as testing weak controls is inefficient and ineffective.

Multiple choice elements of accounts applications of computers in accounting introduction to computer and accounting information system meaning of computerised accounting system application of computerised accounting system

When would "auditing around the computer" be appropriate?

  1. When controls over the computer system are strong.

  2. When controls over the computer system are non-existent.

  3. When controls over the computer system are adequate.

  4. It is never appropriate to audit around the computer
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Auditing around the computer involves checking inputs and outputs without examining the internal processing logic, which is appropriate when the system lacks internal controls.