1.1 Introduction to Financial Accounting

1. GAAP stands for

• Generally Allowed Accounting Principles

• Generally Accepted Accounting Principles

• Globally Accepted Accounting Principles

• None of the above

Balance Sheet is also known as

• Trading A/c

• Income Statement

• Position Statement

• P & L A/c

Cash is a

• Real A/c

• Nominal A/c

• Personal A/c

• Income

Example of Intangible Assets

• Goodwill

• Building

• Cash

• Patents

A/c to be charged when proprietor withdraws funds

• Capital

• Cash

• Bank

• Drawings

Every Debit has a corresponding & equal credit

• Single Entry

• Double Entry

• No Entry

• All of the above

Objective of Financial Accounting

• Ascertain Profit or Loss

• Ascertain Financial Position

• Both the above

• None of the above

Book of original entry

• Journal

• Ledger

• Trail Balance

• Final Accounts

Person who owes money to the business

• Proprietor

• Bank

• Debtor

• Creditor

Debts owed by the business

• Assets

• Liabilities

• Cash

• Capital