Introduction To Accounting Quizz

1. Which of the following statements is the most appropriate definition for Accountancy?

A. Accountancy refers to the systematic knowledge of accounting.

B. Accountancy refers to an art of communicating the financial transactions to accounting users.

C. Accountancy refers to an art of classifying the recorded transactions under their respective accounts.

D. Accountancy refers to the process of recording financial transactions in the order of their occurrence.

2. Which of the following tasks is the prime objective of Cost Accounting?

A. To ascertain the opportunity cost of the business.

B. To ascertain the volume and cost of acquiring funds.

C. To ascertain the cost of goods and services produced.

D. To ascertain the financial position and cost of capital invested.

3. Which of the following tasks is considered as an important objective of accounting?

A. To prepare bills and invoices

B. To prepare Financial Statements

C. To record monetary and non-monetary events

D. To identify business and non-business expenditures

4. If a firm owes money to a person then from the firm’s point of view, the person will be a

A. Payer

B. debtor

C. creditor

D. receiver

5. Which of the following persons invests capital in a firm?

A. Lenders

B. Debtors

C. Creditors

D. Proprietors

6. Book keeping is an art of

A. analysing the financial results

B. recording of business transactions

C. recording of non-monetary events

D. communicating the analysed results

7. An amount paid or a liability incurred for purchase of fixed assets is known as

A. capital invested

B. long term liability

C. capital expenditure

D. revenue expenditure

8. The expenditure whose benefit cannot be claimed in the next accounting period is considered as

A. current liability

B. capital expenditure

C. revenue expenditure

D. deferred revenue expenditure

9. Book keeping is a part of

A. Cost Accounting

B. Financial Accounting

C. Management Accounting

D. National Income Accounting

10. Under which of the following heads the Stock-in-trade is shown?

A. Current Assets

B. Current Liabilities

C. Long Term Investments

D. Short Term Investments

11. Which of the following practices is a limitation of accounting?

A. Ignoring qualitative aspects

B. Recording transactions in Journal

C. Summarising business transactions

D. Classifying the transactions in monetary terms

12. Which of the following practices is a function of Financial Accounting?

A. Price fixing of goods

B. Ascertaining cost per unit

C. Maintaining of payrolls

D. Recording the business transactions

13. Which of the following practices/arts is closely associated with recording of financial transactions?

A. Book Keeping

B. Cost Accounting

C. Decision Making

D. Management Accounting

14. Systematic records involves recording of relevant transactions at one place under a particular head. The head is called ___________.

A. Journal

B. Account

C. Balance Sheet

D. Book of Original Entry

15. Which of the following accounting terms refers to the amount withdrawn by the proprietor for personal use?

A. Profits

B. Drawings

C. Expenses

D. Liabilities