Tag: introduction to book-keeping and accounting

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Questions Related to introduction to book-keeping and accounting

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

What is done as per the basic concepts of accounts?

  1. Book keeping

  2. Accounting

  3. Preparation of balance sheet

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

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

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

  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
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The accounting cycle begins with journalizing transactions, followed by posting them to the ledger, preparing a trial balance, and finally generating financial statements (final accounts). This sequence ensures data is captured, organized, and verified before reporting.

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

______ 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.

  1. Accounting methods

  2. Accounting policies

  3. Accounting concepts

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

Accounting policies represent the specific principles and methods chosen by an entity to prepare and present its financial statements. These choices are necessary when accounting standards allow for different approaches.

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

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

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

An accounting system is designed to record, classify, summarize, and report financial data. It does not have the authority to dictate or restrict the actual business transactions an enterprise chooses to engage in.

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

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 __________________.

  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
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

According to accounting standards, if a change in policy is expected to have a material effect in future periods, the fact of the change must be disclosed to ensure transparency for stakeholders, even if the current impact is negligible.

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

IMF augments its resources by borrowing under ________________.

  1. General arrangements to borrow

  2. New arrangements to borrow

  3. Trust funds

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The IMF uses various borrowing arrangements to supplement its quota resources, including the General Arrangements to Borrow (GAB), New Arrangements to Borrow (NAB), and various trust funds.

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