Tag: meaning of accounting

Questions Related to meaning of accounting

What is done as per the basic concepts of accounts?

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Book keeping

  2. Accounting

  3. Preparation of balance sheet

  4. None of the above

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Correct Option: A
Explanation:

Book-keeping is the basis for accounting. It is because it is responsible for the proper recording of financial transactions.

Accounting begins with book keeping and ends with preparation of financial accounts.

Which of the following highlights the correct order of the stages in the accounting cycle?

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Journalizing, final accounts, posting to the ledger and trial balance

  2. Journalizing, posting to the ledger, trial balance and final accounts

  3. Posting to the ledge, trial balance, final accounts and journalizing

  4. Posting to the ledger, journalizing, final accounts and trial balance

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Correct Option: B

______ refers to the specific accounting principles and the methods of applying those principles adopted by the enterprise in the preparation and presentation of financial statements.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Accounting methods

  2. Accounting policies

  3. Accounting concepts

  4. Accounting assumptions

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Correct Option: B

Trademark is ______________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Tangible account

  2. Intangible account

  3. Fictitious asset

  4. Nominal account

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Correct Option: B

Purposes of an accounting system include all the following except ___________________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Interpret and record the effects of business transaction

  2. Classify the effects of transactions to facilitate the preparation of reports

  3. Summerize and communicate information to decision makers

  4. Dictate the specific types of business enterprise transactions that the enterprises may engage in.

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Correct Option: D

If the change in accounting policy has no material effect in current period but which is reasonably expected to have a material effect in later periods __________________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. The amount of changes should be disclosed.

  2. The fact of change should be disclosed.

  3. The fact of changes should not be disclosed.

  4. None of these

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Correct Option: B

IMF augments its resources by borrowing under ________________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. General arrangements to borrow

  2. New arrangements to borrow

  3. Trust funds

  4. All the above

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Correct Option: D

__________ is used primarily for control of spare parts.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. ABC Analysis

  2. JIT Inventory System

  3. VED Analysis

  4. Perpetual Inventory System

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Correct Option: C

What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme?

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Rs.20 lacs

  2. Rs.10 lacs

  3. Rs.50 lacs

  4. None of the above

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Correct Option: C

Following information is available of PQR for year ended March, 20XX: 4, 000 units in process, 3, 800 units output, 10% of input is normal wastage, Rs 2.50 per unit is scrap value and Rs 46, 000 incurred towards total process cost then amount on account of __________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Rs 2, 500

  2. Rs 2, 000

  3. Rs 4, 000

  4. Rs 3, 500

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Correct Option: A