Introduction to Accounting Quiz-1

Introduction to Accounting Quiz-1

Quiz

 

1. Double entry system of accounting means:
   1.   Entry in two sets of books
   2.   Entry in two dates
   3.   Entry for two aspects of the transaction
   4.   Entry for one aspects of the transaction
2. Use of common unit of measurement and common format of reporting promotes
   1.   Comparability
   2.   Understandability
   3.   Relevance
   4.   Reliability
3. Which of the following will not be recorded in the books of account?
   1.   Sales of goods
   2.   Payment of salary
   3.   Quality of staff
   4.   Purchase of Goods
4. The financial information provided by an accounting system is needed by:
   1.   Owners
   2.   Creditors
   3.   Management
   4.   All of these
5. Transactions are posted into ledger accounts from
   1.   voucher
   2.   journal book
   3.   Bank statement
   4.   None of these
6. Basic function of financial accounting is to
   1.   record all business transactions.
   2.   interpret financial data.
   3.   assist the management.
   4.   None of these.
7. The complete process of accounting is called:
   1.   Journalising
   2.   Posting
   3.   Accounting cycle
   4.   Business cycle
8. Business organization involves:
   1.   Social event
   2.   Economic event
   3.   Welfare event
   4.   None of these
9. The primary objective of accounting is to:
   1.   Protect the organization's assets.
   2.   Provide information about the financial position and performance of an organization.
   3.   Enforce government regulations.
   4.   All of the above.
10. Qualitative characteristics of accounting information are:
    1.   Reliability
    2.   Relevance
    3.   Understandable
    4.   All of these
11. The three main financial statements are:
    1.   Income statement, balance sheet, and statement of retained earnings
    2.   Income statement, statement of cash flows, and statement of changes in equity
    3.   Income statement, balance sheet, and statement of cash flows
    4.   None of the above
12. Which is the last step of accounting as a process of information?
    1.   Recording of data in the books of accounts
    2.   Preparation of summaries in the form of financial statements
    3.   Communication of information
    4.   Analysis and interpretation of information
13. The two main types of accounting are:
    1.   Financial accounting and managerial accounting
    2.   Bookkeeping and auditing
    3.   Financial accounting and tax accounting
    4.   None of the above
14. The mordern system of recording business transactions in the books of accounts is known as:
    1.   Mordern system
    2.   Single entry system
    3.   American system
    4.   Double entry system
15. Who is the father of Accounting:
    1.   Luca Pacioli
    2.   Charles Babeje
    3.   Henry Fayol
    4.   F. W. Tailor
16. Internal users of accounting information are :
    1.   Creditors
    2.   Potential investors
    3.   Managers
    4.   Researchers
17. Management accounting provides valuable services to management in performing
    1.   All management functions
    2.   Controlling functions
    3.   Coordinating management functions
    4.   None of these
18. The art of recording all business transactions in a systematic manner in a set of books is called-
    1.   Accounting
    2.   Book – keeping
    3.   Ledger
    4.   None of these.
19. Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?
    1.   Understandability
    2.   Relevance
    3.   Comparability
    4.   Reliability
20. Sonali wants to buy a building for her business today. Which of the following is the relevant data for his decision?
    1.   Similar business acquired the required building in 2000 for ₹ 10,00,000
    2.   Building cost details of 2003
    3.   Building cost details of 1998
    4.   Similar building cost in August, 2005 ₹ 25,00,000
21. Which of the following limitations of accounting states that accounts may be manipulated to conceal vital facts :
    1.   Accounting is not fully exact
    2.   Accounting may lead to window dressing
    3.   Accounting ignores price level changes
    4.   Accounting ignores qualitative elements
22. Accounting is the language of
    1.   Government
    2.   Commerce
    3.   Trade
    4.   Business
23. Book – keeping is:
    1.   An art
    2.   A science
    3.   An art and science both
    4.   None of these.
24. The activities of selecting, processing and reporting the information can be described as:
    1.   Book-keeping
    2.   Accounting
    3.   Auditing
    4.   Casting
25. Accounting is important because it:
    1.   Helps businesses track their financial performance.
    2.   Provides information to investors and creditors.
    3.   Helps businesses make informed decisions.
    4.   All of the above.