Distinction between accounting and book-keeping - class-XI
Description: distinction between accounting and book-keeping | |
Number of Questions: 28 | |
Created by: Rani Rajan | |
Tags: commercial studies introduction accountancy economics introduction to accountancy conceptual framework of accounting elements of accounts accounting and its terminology nature and terminology of accounting introduction to accounting book keeping and accounting introduction to book-keeping and accountancy generally accepted accounting principles (gaap) commercial applications book keeping and accountancy meaning, objectives and terminology of accounting book-keeping - ledger |
Book-keeping is an ________ of correctly recording of business transaction.
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Art and science
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Art
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Science
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Art or Science
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.
The work of a book keeper is ______ in nature.
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Analytical
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Clerical
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Executive
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Non-executive
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.
A business can not run without book keeping.
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True
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False
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.
Importance and utility of Book-keeping is _________ .
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Help in future reference
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Knowledge about Financial status
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Help in comparison
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All of the above
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.
Book keeping is necessary only for organising with profit objective.
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True
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False
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.
Book keeping records monetary transactions only.
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True
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False
Money measurement concept says that only those transactions are recorded in the books of account which has the monetary value.
______ is an activity concerned with the recording of financial data relating to business operations in significant and orderly manner.
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Accounting
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Book keeping
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Auditing
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Vouching
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.
________ is the recording phase of Accounting system.
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Book keeping
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Ledger posting
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Balancing
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Accounting
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.
Book keeping is mainly concerned with which of the following features?
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It is concerned with financial data recording.
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It is concerned with designing the systems of recording, classifying and summarizing the recorded data.
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It is concerned with data interpreting for internal and external users.
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all of the above
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.
Which of the following is not dependent on accounting?
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Management accounting
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Cost accounting
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Financial accounting
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Book-keeping
Book Keeping and Accounting are two different terms which are often used interchangeably.
Financial statements are a part of ___________.
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accounting
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book-keeping
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all of the above
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none of the above
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.
Which of the following is not a sub-field of accounting?
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Management accounting.
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Cost accounting.
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Financial accounting.
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Book-keeping.
Which of the following statement is correct?
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Fixed assets must always be shown at market value
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Book-keeping and accounting are different terms
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Owner's Equity $=$ Assets + Liabilities
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Patents is an example of current asset
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.
In which year was the Chartered Accountants Institute was set up ?
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1947
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1948
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1949
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1950
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.
Which among the following constitutes the base of accounting?
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Book-keeping
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Posting
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Analyzing
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None of above
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 ________.
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science
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art
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both A & B
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literature
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.
What is done as per the basic concepts of accounts?
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Book keeping
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Balancing
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Casting
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None of the above
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:
Which is NOT a part of financial statements?
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Balance sheet
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Book keeping
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Profit and loss account
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All of the above
Financial statements consist of Profit & Loss Account and Balance Sheet.
The recording of financial transactions and events manually or electronically is called _______.
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bookkeeping
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information technology
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reporting
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auditing
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."
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 |
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1
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2
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3
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4
Cash withdrawal from United Bank. This transaction effects two account i.e. Cash and Bank. Cash and Bank, both are real account.
An account used for carrying temporarily doubtful receipts or disbursements and discrepancies is ____________.
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Suspense account
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Debit balance
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Bank overdraft
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Adjustment account
As such there should not be any suspense account but some time there are few items which are doubtful or accountant needs some clarity in these items. Hence, till than all such receipts and payments are parked in a temporary account called "Suspense" A/c.
The rule 'every transaction affects two or more ledger accounts' is based or the concept of ___________.
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Going concern
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Double entry system of book-keeping
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Money measurement
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Periodicity
Double entry system is based 'on scientific principles therefore, it is used by most of the business houses. This system recognizes the fact that every transaction has two aspects and records both aspects of each and every transaction. For every debit there will be a credit and vice a versa.
Which of the following is correct about 'Accounting Concept'.
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Accounting concepts are based on accounting conventions.
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Accounting concepts are established by common accounting practices.
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Accounting concepts are methods or procedures accepted by general agreement.
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Personal judgement has no role in the adoption of accounting concepts.
Accounting Concepts are the necessary assumptions, conditions or postulates upon which the accounting is based. They are developed to help in the preparation of accounting statements so that the financial information provided to all the readers is such that all readers interpret the statements in the same meaning and context. Example entity concept, dual entry concept etc.
In brief we can say that personal judgement has no role in the adoption of accounting concepts.
The basic objective of the book-keeping is _______________.
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to maintain systematic records of financial transactions
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to ascertain financial performance
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to ascertain financial position
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all of the above
Book keeping is a part of accounting. The process of recording financial transaction in a systematic manner and classifying them into ledgers is termed as book keeping.
Book-keeping covers which of the following activities?
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Identifying, Recording and Classifying.
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Recording, Classifying. Summarising and Analysing.
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Summarising, Analysing and lnterpreting.
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Identifying, Measuring and Communication.
'Book keeping' takes into consideration the recording of financial transactions whereas 'accounting' deals with summarizing, analyzing and interpreting the said information in a proper manner using various accounting standards, policies and principles.
Which of the following is not a sub-field/Branch of Accounting?
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Cost Accounting.
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Management Accounting.
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Social Responsibility Accounting.
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Automated Accounting.
The process of recording financial transactions in a systematic manner and classifying them into ledgers is termed as book keeping. It is a part of accounting. It is the basis for accounting. Whereas, information relating to the cost have specialized branch named as cost accounting and the information relating to the funds and its cost and profit have a branch called management accounting. A new dimension to accounting is the social responsibility accounting which looks after the entity's responsibility towards the society. Automated accounting is no branch or field to accounting.
Book-keeping is mainly concerned with ___________________.
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Recording of financial data
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Designing the systems in recording, classifying and summarising the recorded data.
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Interpreting the data for internal and external users.
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None of these above
Book keeping is an art of 'recording' the financial data whereas 'Accountancy' deals with classification. interpretation, reporting of the financial data.
Book-keeping is mainly related to _________.
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recording of financial data
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designing the systems in recording, classifying and summarizing the recorded data
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interpreting the data for internal and external users
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all of the above
Book keeping is that branch of knowledge which tells us how to keep a record of financial transactions. The need for recording such transactions arises because it is difficult to remember the various financial transactions.