Tag: conceptual framework of accounting

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Questions Related to conceptual framework 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

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 commercial studies conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

The balances of all assets accounts, expenses accounts, losses, drawings are placed in the _______of the trial balance.

  1. Credit column

  2. Debit column

  3. Ledger folio

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

According to the rules of debit and credit, assets, expenses, and losses have debit balances. Therefore, these are recorded in the debit column of the trial balance.

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

In double entry system of book-keeping every business transaction effects ________________.

  1. Two accounts with equal but opposite effect.

  2. Two sides of the same account.

  3. The same account on two different dates.

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

Because every business transaction affects at least two accounts, our accounting system is known as a double-entry system.

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

Book-keeping is mainly concerned with _____________________.

  1. Recording of financial data relating to business operations.

  2. Designing the systems in recording, classifying, summarising the recorded data.

  3. Interpreting the data for internal and external end-users.

  4. Both (a) and (b)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Book keeping is mainly concerned with recording of day to day transactions. Book keeping is more of a clerical job and is related to recording whereas accounting is concerned with interpreting and analysis of transactions.