Introduction to accounting Test

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Introduction to accounting Test - 27

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Weekly Quiz Competition

Question 1
1 / -0

Users of accounting information include ______________.

A
Tax authorities

B
Investors

C
Creditors

D
All of the above

Solution

There are various stakeholders in the business who are interested to know about the accounting information for various reasons. User's or stake holders of the accounting information are creditors, Tax authorities, existing and prospective investors.
Creditors are interested to know about the safety of their money due from the company.
Tax Authorities are more interested to know that the company is maintaining the books of account as per the prevailing laws. Also want to ensure that due taxes are deposited by the company.
Investors both existing and prospective are more interested to know about the overall business.
Question 2
1 / -0

Identify the external users of financial information or financial statements ____________________.

A
Management of the business

B
CFO of the business

C
Employees of the business

D
Investors of the business

Solution

Investors of the business are considered as the external users of financial information or financial statements. As they are not directly involved in working of organization like CFO, Employee or management.
Question 3
1 / -0

Accounting is "the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character and interpreting the results thereof". This definition is given by ______________________.

A
The Institute of Chartered Accountant of India (ICAI)

B
The Institute of Chartered Accountant of England

C
American Institute of Certified Public Accountants

D
The Institute of Chartered Accountant of Pakistan

Solution

American Institute of Certified Public Accountants has stated that Accounting is "the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character and interpreting the results thereof".
Question 4
1 / -0

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

A
Recording, Summarizing

B
Summarizing, Recording

C
Posting, Recording

D
Summarizing, Posting

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 5
1 / -0

Which of the following is/are external users of accounting information's?

A
Shareholders/ Investors

B
Creditors

C
Government agencies

D
All of the above

Solution

External Users are those which are outside the affairs of the business.
Example: Shareholders, creditors, government etc.
Question 6
1 / -0

Which of the following is one of the major professional accountancy bodies in the is____________________.

A
Institute of Chartered Accountants of India

B
Chartered Association of Accountants

C
Indian Institute of Chartered Accounts

D
Institute of Company Accountants

Solution

The Institute of Chartered Accountants of India is one of the major professional accountancy bodies in India.
The ICAI is the second largest professional body of Chartered Accountants in the world.
There is no institute named as Chartered Association of Accountants, Indian Institute of Chartered Account, or Institute of Company Accountants
Question 7
1 / -0

Which of the following is not a sub-field/Branch of Accounting?

A
Cost Accounting.

B
Management Accounting.

C
Social Responsibility Accounting.

D
Automated Accounting.

Solution

The process of recording financial transactions in a systematic manner and classifying them into ledgers is termed as book keeping. It is a part of accounting. It is the basis for accounting. Whereas, information relating to the cost have specialized branch named as cost accounting and the information relating to the funds and its cost and profit have a branch called management accounting. A new dimension to accounting is the social responsibility accounting which looks after the entity's responsibility towards the society. Automated accounting is no branch or field to accounting.
Question 8
1 / -0

Regulatory Agencies, interested as users of accounting information's includes _____________________.

A
Various Government departments

B
Agencies such as Company Law Board (CLB)

C
Registrar of Companies (ROC)

D
All of the above

Solution

Regulatory Agencies, interested as users of accounting information's includes
1. Various Government departments
2. Agencies such as Company Law Board (CLB)
3. Registrar of Companies (ROC)
Question 9
1 / -0

External users of accounting information include ______________.

A
Owner

B
Customer

C
Management

D
None of these

Solution

The users of accounting are mainly classified into two categories
1. Internal Users: Internal users are inside the business of the entity.
Example: managers, owners, directors, CEO, CFO etc.

2. External Users: These are outside the affairs of the entity.
Example: Creditors. Government, Shareholders etc.
Question 10
1 / -0

Internal users of accounting information include _______________.

A
Short-Term Creditors

B
Customers

C
Long-term Lenders

D
CEO

Solution

The users of accounting are mainly classified into two categories
1. Internal Users: Internal users are inside the business of the entity.
Example: managers, owners, directors, CEO, CFO etc.

2. External Users: These are outside the affairs of the entity.
Example: Creditors. Government, Shareholders etc.

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Re-Attempt Weekly Quiz Competition

Introduction to accounting Test - 27

Result

Introduction to accounting Test - 27

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Rank

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SHARING IS CARING

Question 1

Tax authorities

Investors

Creditors

All of the above

Solution

Question 2

Management of the business

CFO of the business

Employees of the business

Investors of the business

Solution

Question 3

The Institute of Chartered Accountant of India (ICAI)

The Institute of Chartered Accountant of England

American Institute of Certified Public Accountants

The Institute of Chartered Accountant of Pakistan

Solution

Question 4

Recording, Summarizing

Summarizing, Recording

Posting, Recording

Summarizing, Posting

Solution

Question 5

Shareholders/ Investors

Creditors

Government agencies

All of the above

Solution

Question 6

Institute of Chartered Accountants of India

Chartered Association of Accountants

Indian Institute of Chartered Accounts

Institute of Company Accountants

Solution

Question 7

Cost Accounting.

Management Accounting.

Social Responsibility Accounting.

Automated Accounting.

Solution

Question 8

Various Government departments

Agencies such as Company Law Board (CLB)

Registrar of Companies (ROC)

All of the above

Solution

Question 9

Owner

Customer

Management

None of these

Solution

Question 10

Short-Term Creditors

Customers

Long-term Lenders

CEO

Solution

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