Tag: meaning and classification of accounts

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Multiple choice book keeping and accountancy accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

Model which states decline in extra time needed to produce last unit, every time for cumulative quantity of doubled units produced is classified as _____________________.

  1. incremental unit average model

  2. incremental cost learning model

  3. incremental unit time learning model

  4. incremental price learning model
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The incremental unit time learning model specifically tracks the time required for the last unit produced, which decreases at a constant rate as cumulative production doubles.

Multiple choice book keeping and accountancy accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

Single entry system is known as incomplete system of recording accounting information.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The single entry system is considered incomplete because it does not record both aspects (debit and credit) of every transaction, unlike the double entry system.

Multiple choice book keeping and accountancy accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

When a buyer returns damaged goods to the seller, the buyer receives ______________.

  1. credit note.

  2. pro forma invoice.

  3. debit note.

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

When a buyer returns goods, they issue a debit note to the seller, and the seller issues a credit note to the buyer to acknowledge the reduction in the amount owed.

Multiple choice book keeping and accountancy accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

Double Entry System of Book-keeping is the most ______________ system of recording business transaction.

  1. perfect

  2. scientific

  3. complete

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

The Double Entry System is widely regarded as the most complete, scientific, and perfect system for recording business transactions because it captures every aspect of a transaction.

Multiple choice commercial studies accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

Conventional system of accounting is recognised by law.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The conventional system of accounting (often based on informal practices) is generally not recognized by law for formal financial reporting; the Double Entry System is the standard.

Multiple choice book keeping and accountancy accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

Single entry system is suitable to _________ firms.

  1. small

  2. big

  3. medium

  4. all of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Single entry system is an incomplete and informal accounting method. It is primarily suitable for small businesses that do not require complex financial reporting.

Multiple choice book keeping and accountancy accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

Only cash book and personal accounts are maintained under which system of recording accounting information?

  1. Mahajani system

  2. Single entry system

  3. Double entry system

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

The single entry system is characterized by maintaining only a cash book and personal accounts, rather than a complete set of nominal and real accounts. It is an informal system often used by small traders.

Multiple choice commercial studies accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

What is the assumption of Double entry system of recording accounting information?

  1. Every transaction has one effect.

  2. Every transaction has two effect.

  3. Every transaction has multiple effect.

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

The fundamental principle of the double entry system is that every financial transaction affects at least two accounts: one is debited and the other is credited.

Multiple choice commercial studies accounting procedures - rules of debit and credit modern approach of rules of accounts meaning and classification of accounts classification of accounts

Accounts other than the impersonal account is _________.

  1. Personal account

  2. Real account

  3. Nominal account

  4. Both B and C
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

IMPERSONAL ACCOUNT:In the accounts of the nominal ledger, we have different types of expenses for different purposes like rent, insurance, telephone and others. As these expenses are related NOT to the person to whom the money is paid and more concerned towards the reason for payment these are known as IMPERSONAL accounts.


Impersonal accounts are all accounts other than the personal accounts. They can further be categorized into Real Accounts and Nominal Accounts.