Tag: meaning and objectives of accounting

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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 an ________ of correctly recording of business transaction.

  1. Art and science

  2. Art

  3. Science

  4. Art or Science
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Book-keeping is that branch of knowledge which tells us how to keep a record of financial transaction. Book - keeping may be defined as the science and art of recording transactions in books so accurately and systematically that the true state of a business can be correctly 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

The work of a book keeper is ______ in nature.

  1. Analytical

  2. Clerical

  3. Executive

  4. Non-executive
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Book keeping is a process of recording the business transaction in specified set of books. All business transactions must be recorded in a book which is called journal.  
Book keeping does not involve interpreting and communication of financial information. 

The person who is recording the transaction is called book keeper. Its a clerical work only.

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 business can not run without book keeping. 

  1. True

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

Book keeping is a systematic records of transaction however there are certain limitations such as book keeping doesn't follow the principle of double entry system moreover it is based on cash basis of accounting  but not made on an accruals basis so it is not necessary for a firm to use book keeping it can run without 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

Importance and utility of Book-keeping is _________ .

  1. Help in future reference

  2. Knowledge about Financial status

  3. Help in comparison

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

Bookkeeping is the organization of financial information. Keeping your financial records organized makes it easier to locate and provide to appropriate parties. Bookkeeping is important because it helps with business analysis. It is a tool used by management to analyze business performance. It helps in taking the financial decision and comparison between the two firm also.

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 necessary only for organising with profit objective.

  1. True

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

Book keeping is the recording, on day to day basis, of the financial transactions and informations pertaining to a business. Essentially, book keeping means recording and tracking the numbers involved in the financial side of the business in a organized way. It is essential for business, but it is also useful for individuals and  non-profit organizations. 

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 records monetary transactions only. 

  1. True

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

Money measurement concept says that only those transactions are recorded in the books of account which has the monetary value. 

Therefore only transactions which have the monetary value to be recorded in books. 
If there is money, there is accounting. No Money No 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

______ is an activity concerned with the recording of financial data relating to business operations in significant and orderly manner.

  1. Accounting

  2. Book keeping

  3. Auditing

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

Book keeping is the recording of financial transactions, and is part of the process of accounting in business. It is a process concerned with recording of transactions. Book keeping is mainly concerned with financial data recording. Book keeping refers mainly to the record keeping aspects of accounting. book keeping involves preparing source documents for all transactions, operations, and other events of the business.

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

________ is the recording phase of Accounting system.

  1. Book keeping

  2. Ledger posting

  3. Balancing

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

All financial transactions must be recording in the books of accounts of the business. Recording of transaction is the first steps in the accounting system. If any expense is incurred, this has to be recorded first to initiate the accounting process.

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 mainly concerned with which of the following features?

  1. It is concerned with financial data recording.

  2. <span>It is concerned with&nbsp;</span>designing the systems of recording, classifying and summarizing the recorded data.

  3. <span>It is concerned with</span>&nbsp;data interpreting for internal and external users.

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

Book keeping and accounting terms are normally used as interchangeably but actually this is not the case. Book keeping is basically concerned with recording of a transaction in books of account of any business. It is to be noted that only financial data are to be recorded.

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 dependent on 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

Book Keeping and Accounting are two different terms which are often used interchangeably. 

Book keeping is a method of recording all the business transactions. This work is normally performed by the junior executive. 
Accounting is a term which analyze and interpret the data which are recorded in the books of accounts through book keeping. 

Accounting starts when book keeping ends hence book keeping is not dependent on accounting.