Tag: book keeping and accountancy

Quizzes (126) Questions (1524)

Questions Related to book keeping and accountancy

Multiple choice book keeping and accountancy dissolution of firm accounting record at the time of dissolution procedure of settlement of accounts partnership account (dissolution of partnership)

A, B, & C were partners sharing profits and losses in the ratio of 3:2:1 A Retired and firm received the joint life policy as 7,500 appearing in the balance sheet at 10,000 JLP is credited and cash debited 7,500 what will be the treatment for the balance in Joint Life Policy?

  1. Credited to partner's current account in profit sharing ratio.

  2. Debited to revaluation account.

  3. Debited to partner's capital account in profit sharing ratio.

  4. Either (B) or (C)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When the JLP amount received exceeds the book value, the difference is a gain. This gain is credited to the partners' capital accounts in the old profit-sharing ratio, or adjusted via the revaluation account.

Multiple choice book keeping and accountancy dissolution of firm accounting record at the time of dissolution procedure of settlement of accounts partnership account (dissolution of partnership)

A, B & C takes a joint life policy, after 5 years B retire from the firm. Old profit sharing ratio is 2:2:1. After retirement A and C decided to share profits equally. They had taken a joint life policy of 2,50,000 with the surrender value 50,000 What will be the treatment in the partner's capital account on receiving the JLP amount if joint life policy is maintained at the surrender value along with the reserve?

  1. 50,000 credited to all the partners in old ratio.

  2. 2,50,000 credited to all the partners in old ratio

  3. 2,00,000 credited to all the partners in old ratio.

  4. Distribute JLP Reserve A/c in old profit sharing ratio.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

If the JLP is maintained at surrender value with a corresponding reserve, the reserve is distributed among all partners in the old profit-sharing ratio upon retirement.

Multiple choice book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Commercial accounting is based on ________________.

  1. Single entry book keeping

  2. Double entry book keeping

  3. Both single and double entry book keeping

  4. Cash basis of book keeping
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Commercial accounting relies on the double-entry bookkeeping system, where every transaction affects at least two accounts, ensuring the accounting equation remains balanced.

Multiple choice book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Who is the father of Double entry- Book Keeping?

  1. F.W. Taylor

  2. Henry Fayol

  3. Lucas Paciol

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

Luca Pacioli was an Italian mathematician and is famously known as The Father of Accounting and Bookkeeping due to his tremendous contributions in the field of accounting. 

Multiple choice book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

______ covers procedural aspects of accounting work and includes record keeping function.

  1. Accounting

  2. Book-keeping

  3. Posting

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

Bookkeeping is primarily concerned with the routine, procedural task of recording financial transactions. Accounting is a broader field that includes the analysis and interpretation of those records.

Multiple choice book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Book-keeping is concerned with the ______ of transactions while Accounting is concerned with the _______ of the recorded transactions. 

  1. Recording, Summarizing

  2. Summarizing, Recording

  3. Posting, Recording

  4. Summarizing, Posting
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Bookkeeping focuses on the systematic recording of daily transactions. Accounting takes those recorded transactions and performs higher-level tasks like summarizing, analyzing, and reporting.

Multiple choice book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Financial statement do not form part of book-keeping.

  1. True

  2. False

  3. Partly true

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

Bookkeeping is limited to the recording and maintenance of financial data. The preparation of financial statements is an analytical process that falls under the scope of accounting, not bookkeeping.

Multiple choice book keeping and accountancy adjustments in preparation of financial statements accrued income earned or accrued income need for adjustment, closing stock and outstanding expenses

Accrued income is also been called as ________.

  1. Outstanding income

  2. Outstanding expense

  3. Prepaid income

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

It may happen that certain items of income such as interest on loan, commission, rent, etc. are earned during the current accounting year but have not been actually received by the end of the same year. Such incomes are known as accrued income. It is the income which has been earned during a particular accounting period, also known as outstanding income. 

Examples include accrued interest, accrued rent (to be received), etc. Accrued income is recorded in the books at the end of an accounting period to show true numbers of a business.

Multiple choice book keeping and accountancy adjustments in preparation of financial statements accrued income earned or accrued income need for adjustment, closing stock and outstanding expenses

The recording of wages earned but not yet paid is an example of an adjustment that _____________.

  1. apportions revenues between two or more periods

  2. recordings an accrued expense

  3. recordings an unrecorded revenue

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

Recording wages earned but not yet paid is an accrual adjustment, specifically recognizing an expense that has been incurred but not yet recorded in the accounts.

Multiple choice book keeping and accountancy adjustments in preparation of financial statements accrued income earned or accrued income need for adjustment, closing stock and outstanding expenses

Payment received from debtor _______________.

  1. decreases the total assets

  2. increases the total assets

  3. results in no change in the total assets

  4. increases the total liabilities

  5. decreases the total liabilities
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When a debtor pays, the company receives cash (an asset) and decreases accounts receivable (an asset). Since one asset increases and another decreases by the same amount, the total assets remain unchanged.