Tag: conceptual framework of accounting

Questions Related to conceptual framework of accounting

Commercial accounting is based on ________________.

book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Single entry book keeping

  2. Double entry book keeping

  3. Both single and double entry book keeping

  4. Cash basis of book keeping

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Correct Option: B

Who is the father of Double entry- Book Keeping?

book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. F.W. Taylor

  2. Henry Fayol

  3. Lucas Paciol

  4. None of the above

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Correct Option: C
Explanation:

Luca Pacioli was an Italian mathematician and is famously known as The Father of Accounting and Bookkeeping due to his tremendous contributions in the field of accounting. 

______ covers procedural aspects of accounting work and includes record keeping function.

book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Accounting

  2. Book-keeping

  3. Posting

  4. Journalizing

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Correct Option: B

Book-keeping is concerned with the ______ of transactions while Accounting is concerned with the _______ of the recorded transactions. 

meaning and objectives of accounting distinction between book-keeping and accounting distinction between accounting and book-keeping conceptual framework of accounting book keeping and accountancy

  1. Recording, Summarizing

  2. Summarizing, Recording

  3. Posting, Recording

  4. Summarizing, Posting

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Correct Option: A

Financial statement do not form part of book-keeping.

book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. True

  2. False

  3. Partly true

  4. None of above

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Correct Option: A

The balances of all assets accounts, expenses accounts, losses, drawings are placed in the _______of the trial balance.

commercial studies conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Credit column

  2. Debit column

  3. Ledger folio

  4. None of the above

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Correct Option: B

In double entry system of book-keeping every business transaction effects ________________.

commercial studies conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Two accounts with equal but opposite effect.

  2. Two sides of the same account.

  3. The same account on two different dates.

  4. All of the above

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Correct Option: A
Explanation:

Because every business transaction affects at least two accounts, our accounting system is known as a double-entry system.

Book-keeping is mainly concerned with _____________________.

commercial studies conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Recording of financial data relating to business operations.

  2. Designing the systems in recording, classifying, summarising the recorded data.

  3. Interpreting the data for internal and external end-users.

  4. Both (a) and (b)

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Correct Option: A
Explanation:

Book keeping is mainly concerned with recording of day to day transactions. Book keeping is more of a clerical job and is related to recording whereas accounting is concerned with interpreting and analysis of transactions.