Introduction to Accounting

This set of MCQs helps students to learn about various important things such as, state the meaning and need of accounting, discuss accounting as a source of information, identify the internal and external users of accounting information, explain the objectives of accounting, describe the role of accounting, explain the basic terms used in accounting

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The process of recording, classifying and summarizing all business transactions in order to know the financial result is called –

Book – keeping Accounting Journalizing None of these.

Cash, goods or assets invested by the proprietor in the business for earning profit is called-

Profit Capital Fixed assets None of these.

The person, firm or institution who does not pay the price in cash for the goods purchased or the services received is called-

Creditor Proprietor Debtor None of these.

Book – keeping is-

An art A science An art and science both None of these.

Deepti wants to buy a building for her business today. Which of the following is the relevant data for his decision?

Similar business acquired the required building in 2000 for Rs. 10,00,000 Building cost details of 2003 Building cost details of 1998 Similar building cost in August, 2005 Rs. 25,00,000

Which is the last step of accounting as a process of information?

Recording of data in the books of accounts Preparation of summaries in the form of financial statements Communication of information Analysis and interpretation of information

Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?

Understandability Relevance Comparability Reliability

Goodwill account is a,

Personal Account

Real Account

Nominal Account.

None of these

Which is the last step of accounting as a process of information?

Recording of data in the books of accounts

Preparation of summaries in the form of financial statements

Communication of information

Analysis and interpretation of information

Which of the following is the International Accounting Standard for Intangible Assets?

IAS 38

IAS 18

IAS 33

IAS 12

Use of common unit of measurement and common format of reporting promotes,

Comparability

Understandability

Relevance

Reliability

Which of the following is the title of AS-3 (Revised)?

Cash Flow Statement

Valuation of Inventories

Intangible Assets

Revenue Recognition

According to which concept, the proprietor of the business is treated as the creditor to the extent of his capital?

Business Entity Concept

Accounting period concept

Cost Concept

Money measurement concept

Which of the following accounting concept says that asan set is to be recorded at its original cost and depreciated systematically without reference to its market value?

Going Concern concept

Cost Concept

Accrual Assumption

Consistency Concept

Which of the following is NOT a utility of Accounting Standards?

None of the options

Help auditors

Ensure uniformity

Ensure responsibility

Quiz/Test Summary

Title: Introduction to Accounting

Questions: 15