Tag: distinction between accounting and book-keeping

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Questions Related to distinction between accounting and book-keeping

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Financial statements are a part of ___________.

  1. accounting

  2. book-keeping

  3. all of the above

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

Financial Accounting is a process of classifying, summarizing and interpreting the financial information recorded in the books of account. Financial statements are prepared to know the financial position of the organization. 

Its part of accounting. 

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Which of the following is not a sub-field of accounting?

  1. Management accounting.

  2. Cost accounting.

  3. Financial accounting.

  4. Book-keeping.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
The Main Branches or Types or Sub-fields of Accounting include inflation accounting, financial accounting, Human resource accounting, managerial accounting, Social Responsibility Accounting, cost accounting, Tax or value-added accounting. 
Book-keeping is the recording of financial transactions and is part of process of accounting, not a sub field of accounting.

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Which of the following statement is correct?

  1. Fixed assets must always be shown at market value

  2. Book-keeping and accounting are different terms

  3. Owner's Equity $=$ Assets + Liabilities

  4. Patents is an example of current asset
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Book Keeping and accounting are different terms. Book Keeping and Accountancy are often used interchangeably but these are not identical. Book keeping is an art , accountancy is a science. The work of book keeping is handled by the junior staff  whose primary responsibility is to record all the transactions in various books maintained by the business. The information contain in these books itself doe not provide any financial position until these information is analyse and interpreted in a logical manner. This task is done by the accountants. 

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

In which year was the Chartered Accountants Institute was set up ?

  1. 1947

  2. 1948

  3. 1949

  4. 1950
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It was established on 1 July 1949 as a statutory body under the Chartered Accountants Act, 1949 enacted by the Parliament (acting as the provisional Parliament of India) to regulate the profession of Chartered Accountancy in India. ICAI is the second largest professional Accounting & Finance body in the world.

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Which among the following constitutes the base of accounting?

  1. Book-keeping

  2. Posting

  3. Analyzing

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

Book Keeping is the primary function of accounting. More often, the term book keeping and accountancy are used interchangeably but that is not correct. Book keeping and accountancy are two different terms. 


Book Keeping is generally mean recording of all business transactions. This task is performed by the junior staff of the organization. 
Accounting starts only when the book keeping is done. This task is performed by the senior accountants. Book keeping is the base of accounting. 

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Book keeping is ________.

  1. science

  2. art

  3. both A & B

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

Book keeping is the science and art of recording transactions in money or money's worth so accurately and systematically that the true state of a businessman's affairs can be carefully ascertained. 

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

What is done as per the basic concepts of accounts?

  1. Book keeping

  2. Balancing

  3. Casting

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

There are various accounting concept on which the whole accounting system is based. These are known as accounting concepts and conventions. Book keeping is done on the basis of these accounting concept. Main concepts are:

1) Separate Entity Concept
2) Going Concern Concept
3) Periodicity Concept
4) Cost Concept
5) Matching Concept
6) Revenue Recognition Concept
7) Money Measurement Concept
8) Dual Aspect Concept.

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

Which is NOT a part of financial statements?

  1. Balance sheet

  2. Book keeping

  3. Profit and loss account

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

Financial statements consist of Profit & Loss Account and Balance Sheet. 


Book Keeping is a process of recording of business transactions in chronological order. 

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

The recording of financial transactions and events manually or electronically is called _______.

  1. bookkeeping

  2. information technology

  3. reporting

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

Book Keeping is that branch of knowledge which tells how to keep a record of financial transactions. Definition of book keeping says that "Book Keeping is the art of recording business transactions in a systematic manner."

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

A company draws cash from United Bank. The entries in the Company's accounts should be:

Debit Credit
1 United bank account Cash account
2 Purchases Cash Account
3 Income Bank Account
4 Cash account United bank account

  1. 1

  2. 2

  3. 3

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

Cash withdrawal from United Bank. This transaction effects two account i.e. Cash and Bank. Cash and Bank, both are real account. 

Following the rule of real account, following entry will be passed:

Cash A/c                               Dr.
      To United Bank A/c.