Introduction to accounting Test

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Introduction to accounting Test - 20

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Weekly Quiz Competition

Question 1
1 / -0

A business transaction in which money comes into the business immediately after the goods are delivered or services are rendered is called ____________.

A
Cash Transaction

B
Credit Transaction

C
Black Money Transaction

D
Hawala Transaction

Solution

There are two kinds of business transaction, i.e. cash or credit. If anything is sold to the third party against which money will be received in future is called a credit transaction. If the transaction is effected by cash on an immediate basis, it's called a cash transaction.
Question 2
1 / -0

The users of financial statements include _______ .

A
shareholders

B
government

C
lenders

D
all of the above

Solution

The users of financial statement may be classified into internal external users. Internal users refers to mangers who use accounting information in making decisions related to the company's operations. External users, on the other hand, are not involved in the operations of the company but hold some financial interest.
Question 3
1 / -0

Which of these process is/are not the function of Book Keeping?

A
Summarising

B
Interpreting

C
Communicating

D
All the three

Solution

Bookkeeping and accounting is not to be considered identical terms.
Bookkeeping is defined as recording and classifying the transaction
whereas summarizing, interpreting and communicating the financial data is part of accounting.
Question 4
1 / -0

Purposes of an accounting system include ________ .

A
interpret and record the effects of transactions

B
classifying the effect of transaction to facilitate report preparations

C
summarize and communicate information to decision makers

D
All of the above

Solution

Accounting is the systematic and comprehensive recording of financial data related to business operations in significant and orderly manner. It is a process of summerising, analyzing and reporting the transactions, interpretation and recording effect of transaction, classifying transaction etc.
Question 5
1 / -0

_____________ is/are not characteristics of Financial Statement.

A
Compatibility

B
Relevance

C
Understandability

D
Reliability

Solution

There are mainly 4 characteristics of the accounting information
1. Understandability
2. Reliability
3. Relevance
4. Comparability
Question 6
1 / -0

Which of these processes are the function of book keeping?

A
Summarising

B
Interpreting

C
Classifying

D
Communicating

Solution

Book keeping is an activity concerned with the recording and classification of financial data relating to business operations in significant and orderly manner. It is a process concerned with financial data recording.
Question 7
1 / -0

____________ are important characteristics of Financial Statement.

A
Understandability

B
Comparability

C
Reliability

D
All of the above

Solution

Financial accounting is the field of accounting concerned with the summary, analysis and reporting of financial transactions pertaining to a business. Financial accounting reports the results and position of business to government, creditors, investors, and external parties. Understanding, comparability, and reliability is important characteristics of financial accounting.
Question 8
1 / -0

________ is/are not characteristic of financial statement.

A
Prudence

B
Full, fair and adequate disclosure

C
Flexibility

D
Faithful representation

Solution

Financial accounting is the field of accounting concerned with the summary, analysis and reporting of financial transactions pertaining to a business. Financial accounting reports the results and position of business to government, creditors investors and external parties. Understandability, comparability, full, fair and adequate disclosure, faithful representation and reliability is important characteristics of financial statements.
Question 9
1 / -0

A person or entity to whom money is owned is known as ________.

A
Creditor

B
Claimant

C
Bailee

D
Debtor

Solution

A creditor is a party (for example, person, organisation, company, or government) that has a claim on the services of a second party. It is a person or instruction to whom money is owed. A creditor may be a bank, supplier, or person that has provided credit to a company.
Question 10
1 / -0

____________is a reduction from the list price of goods and services on account of immediate or payment within a stipulated period.

A
Trade discount

B
Cash discount

C
Festival discount

D
Inaugural discount

Solution

Discount are categorized as Trade discount and Cash discount.

Trade discount are general discount allowed to every customer to promote the sales.

Cash discount is method of speedy collection of money from the customers to whom goods were sold on credit. Cash discount is allowed to the existing customer with a condition that if the amount is paid on immediate basis or within a stipulated period, a certain percentage will be allowed as discount.

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Re-Attempt Weekly Quiz Competition

Introduction to accounting Test - 20

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Introduction to accounting Test - 20

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Question 1

Cash Transaction

Credit Transaction

Black Money Transaction

Hawala Transaction

Solution

Question 2

shareholders

government

lenders

all of the above

Solution

Question 3

Summarising

Interpreting

Communicating

All the three

Solution

Question 4

interpret and record the effects of transactions

classifying the effect of transaction to facilitate report preparations

summarize and communicate information to decision makers

All of the above

Solution

Question 5

Compatibility

Relevance

Understandability

Reliability

Solution

Question 6

Summarising

Interpreting

Classifying

Communicating

Solution

Question 7

Understandability

Comparability

Reliability

All of the above

Solution

Question 8

Prudence

Full, fair and adequate disclosure

Flexibility

Faithful representation

Solution

Question 9

Creditor

Claimant

Bailee

Debtor

Solution

Question 10

Trade discount

Cash discount

Festival discount

Inaugural discount

Solution

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My Perfomance

Score

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