Introduction to accounting Test

Result

Introduction to accounting Test - 21

Score
-
out of -
Rank
-
out of -

TIME Taken - -

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.

Weekly Quiz Competition

Question 1
1 / -0

Accounting process does not includes __________.

A
Classifying.

B
Summarizing.

C
Popularizing.

D
Recording.

Solution

Accounting starts with identifying a transaction and then recording in Journal
-then classifying in the ledger then summarizing in final accounts
-then interpretation through Ratio analysis then finally communicating the information to the users of the financial statement.
Thus, there is no popularizing step in the entire accounting process.
Question 2
1 / -0

Accounts that are prepared in order to comply with statutory requirement and to cater the information requirement of external users are known as

A
Management Accounts

B
Financial Accounts

C
Management information systems

D
Cost accounts

Solution

Accounts that are prepared in order to comply with statutory requirement and to cater for the information requirement of external users are known as Financial Accounts.
Management accounts are prepared for the internal purpose it is not distributed to people from the outer world.
Question 3
1 / -0

_________is a reducing from the list price of goods and services on business consideration other than prompt payment.

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. Its a reduction to the published price of a product.

Cash discount is method of speedy collection of money from the customers to whom goods were sold on credit.
Question 4
1 / -0

_______ is a liability that results from a purchase of goods or service.

A
Accounts payable

B
Bills payable

C
Accounts receivables

D
Accrued liability

Solution

When a company purchases goods on credit which needs to be paid back in a short period of time, it is known as Accounts Payable. It is treated as a liability and comes under the head 'current liabilities'. Accounts payable is a short-term debt payment which needs to be paid to avoid default.
Question 5
1 / -0

When a proprietor withdraw cash from the firm for self use, this is treated as ______.

A
Loss

B
Drawing

C
Depreciation

D
Expenses

Solution

When the owner of the business withdraws some amount from the business for personal use then it is known as drawings.
Capital is the amount that is invested by the owner in the business.
Drawings are the decrease in the Capital of the business.
Question 6
1 / -0

Which of these is not entered in the books of account?

A
Cash discount

B
Custom duty

C
Trade discount

D
Interest on capital

Solution

Discounts are classified as trade discount and cash discount. If a discount is not associated with any precondition and available to all the customers, it's considered a trade discount. In such a situation, the net price will only be recorded in the books of account.
Trade Discount is not recorded the books of accounts.
Question 7
1 / -0

Accounting standards are issued by the _______.

A
Institute of Cost and Work Accountants of India.

B
Institute of Chartered Accountants of India.

C
Ministry of Finance.

D
Comptroller and Auditor General of India

Solution

The Institute of Chartered Accountants of India has issued Accounting Standard to make financial statements from multiple companies comparable.
As all entities follow the same rules, accounting standards make the financial statements credible and allow for more economic decisions based on accurate and consistent information
The ICAI has issued 32 Accounting Standards so far, out of which 29 are notified by Central Government.
Question 8
1 / -0

A person or entity who owes money is known as ________.

A
Creditor

B
Claimant

C
Bailee

D
Debtor

Solution

A debtor is a person or entity that owes money. The entity may be an individual, a firm, a government, a company or other legal person. The counterparty is called a creditor. When the counterpart of this debt arrangement is a bank, the debtor is more often referred to as a borrower. For example, if you borrow $10,000 from a bank, you are the debtor and the bank is the creditor.
Question 9
1 / -0

The primary qualities that makes accounting information useful for decision-making are ________________.

A
Comparability and consistency

B
Materiality and timeliness

C
Relevance and reliabilty

D
Reliability and comparability

Solution

Option C is correct.
Relevance is the concept that the information generated by an accounting system should impact the decision making of someone perusing the information and reliability concept says only those transactions should be recorded which can be verified with objective evidence.

Therefore, these two are the primary qualities which makes accounting information useful for decision making.
Question 10
1 / -0

Accounting process does not includes _______

A
Classifying

B
Summarizing

C
Interpreting

D
Printing

Solution

Accounting starts with identifying a transaction and then recording it in Journal
-then classifying in the ledger then summarizing in final accounts
-then interpretation through Ratio analysis then finally communicating the information to the users of the financial statement.
Therefore, there is no printing step in the accounting process.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Introduction to accounting Test - 21

Result

Introduction to accounting Test - 21

Score

-

Rank

-

SHARING IS CARING

Question 1

Classifying.

Summarizing.

Popularizing.

Recording.

Solution

Question 2

Management Accounts

Financial Accounts

Management information systems

Cost accounts

Solution

Question 3

Trade discount

Cash discount

Festival discount

Inaugural discount

Solution

Question 4

Accounts payable

Bills payable

Accounts receivables

Accrued liability

Solution

Question 5

Loss

Drawing

Depreciation

Expenses

Solution

Question 6

Cash discount

Custom duty

Trade discount

Interest on capital

Solution

Question 7

Institute of Cost and Work Accountants of India.

Institute of Chartered Accountants of India.

Ministry of Finance.

Comptroller and Auditor General of India

Solution

Question 8

Creditor

Claimant

Bailee

Debtor

Solution

Question 9

Comparability and consistency

Materiality and timeliness

Relevance and reliabilty

Reliability and comparability

Solution

Question 10

Classifying

Summarizing

Interpreting

Printing

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.