Self Studies
Self Studies
Self Studies
Self Studies
Selfstudy
Selfstudy

Introduction to accounting Test - 16

Result Self Studies

Introduction to accounting Test - 16
  • Score

    -

    out of -
  • Rank

    -

    out of -
TIME Taken - -
Self Studies

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Self Studies Self Studies
Weekly Quiz Competition
  • Question 1
    1 / -0
    Information is said to be relevant if it is _______.
    Solution
    The information must be relevant to the needs of the users, which is the case when the information influences the economic decisions of users. This may involve reporting particularly relevant information, or information whose omission or misstatement could influence the economic decisions of users.
  • Question 2
    1 / -0
    When information about two different enterprises have been prepared presented in a similar manner, the information exhibits the characteristics of______________.
    Solution
    When information about two different enterprises have been prepared presented in a similar manner, the information exhibits the characteristics of comparability. 
    It means that the books of accounts should be prepared in such a way that they facilitate easy comparison, intra firm or inter firm. 
  • Question 3
    1 / -0
    The process of accounting starts with _______ and ends with_______.
    Solution
    Accounting starts with 
    -identifying a transaction  and then recording in Journal
    -then classifying in the ledger
    -then summarising in final accounts
    -then interpretation through Ratio analysis
    -then finally communicating the information to the users of the financial statement. 
    Thus, the first step is identifying and the last step is communicating the information.
  • Question 4
    1 / -0
    Sale or purchase of goods or services for immediate cash payment is known as ____________ .
    Solution
    The term "transaction" refers to any business dealing or event which has a value measurable in terms of money and which involves transfer of money or money's worth  between the business and others. The capital introduced by the proprietor, the amount withdrawn by the proprietor, purchase of goods on cash or credit, selling of goods for cash or credit, receipt of money from a debtor, payment to a creditor, borrowing of loan from the bank or payment of a loan, payment of salaries, rent, telephone charges, and receipt of incomes such as discount, rent and interest are examples of transactions. Cash transactions refer to any transaction which involves immediate payment or receipt of cash, e.g. purchase of goods for cash, sale of goods for cash, and payment of expenses or receipt of incomes
  • Question 5
    1 / -0
    Exchange of goods and services either for cash or any other goods or services is known as _______________ .
    Solution
    A event involving some value between two or more entities. It can be purchase of goods, receipt of money, payment to a creditor, incurring expenses, etc. A transaction is a business event that has a monetary impact on entity's financial statements, and is recorded as an entry in its accounting  records. A high-volume transaction, such as billing to a customer, may be recorded in a specialized journal, which is then summarized and posted to the general ledger. Alternatively, lower-volume transactions are posted directly to the general ledger. A transaction can be a cash transaction or a credit transaction.
  • Question 6
    1 / -0
    Sale or purchase of goods or for certain value to be receivable or payable in future is known as ____________ .
    Solution
    The term "transaction" refers to any business dealing or event which has a value measurable in terms of money and which involves transfer of money or money's worth between the business and others. The capital introduced by the proprietor, the amount withdrawn by the proprietor, purchase of goods on cash or credit, selling of goods for cash or credit, receipt of money  from a debtor, payment to a creditor, borrowing of loan from bank or payment of a loan, payment of salaries, rent, telephone charges, and receipt of incomes such as discount, rent and interest are examples of transactions. A credit transaction is one in which payment or receipt of money is postponed for a future date. Here, the name of the party is mentioned (with or without the word 'credit'). Purchased furniture from Mohan on credit, sold goods to Rejeev on credit, and salary unpaid, are some examples of credit transactions.
  • Question 7
    1 / -0
    Dealings between two persons is a __________ . 
    Solution
    An event involving some value between two or more entities. It can be purchase of goods, receipt of  money, payment of creditor, incurring expenses, etc. It can be a cash transaction or a credit transaction. A transaction is a business event that has a monetary impact on an entity's financial statements, and is recorded as an entry in its accounting records. A high-volume transaction, such as billing to a customer, may be recorded in a specialized journal, which is then summarized and posted to the general ledger. Alternatively, lower-volume transactions are posted directly to the general ledger.
  • Question 8
    1 / -0
    Explain the term 'Goods' _________________.
    Solution
    The commodities which are bought to resale or for packing and selling or for production to produce final goods for sale are called goods. It is basically things in which sellers trade. For example, for a seller of furniture goods are wood that he will purchase to make furniture.
  • Question 9
    1 / -0
    The primary qualities that make accounting information useful for decision making are_________.
    Solution
    The primary qualities that make accounting information useful for decision making are reliability and comparability. Reliability means that the statement of accounts/accounting information is reliable for the users of the financial statements. 
    Comparability means that the accounting information should be presented in such a way that it is comparable and it facilitates inter and intra-firm comparison.
  • Question 10
    1 / -0
    A person to whom amount is payable is known as ___________ .
    Solution
    Creditors are persons and /or other entities who have been to be paid by an enterprise an amount for providing the enterprise goods and services on credit. The total amount standing to the favour of such persons and/or entities on the closing date, is shown on the Balance Sheet as sundry creditors on the liabilities sideIf company X borrowed money from its bank , Company X is the debtor and the bank is the creditor. If Supplier A sold merchandise to Retailer B, then Supplier A is the creditor  and Retailer B is the debtor
Self Studies
User
Question Analysis

  • Correct -

  • Wrong -

  • Skipped -

My Perfomance
  • Score

    -

    out of -
  • Rank

    -

    out of -
Re-Attempt Weekly Quiz Competition
Self Studies Get latest Exam Updates
& Study Material Alerts!
No, Thanks
Self Studies
Click on Allow to receive notifications
Allow Notification
Self Studies
Self Studies Self Studies
To enable notifications follow this 2 steps:
  • First Click on Secure Icon Self Studies
  • Second click on the toggle icon
Allow Notification
Get latest Exam Updates & FREE Study Material Alerts!
Self Studies ×
Open Now