Basics of Financial Accounting

Accounting furnishes data on

• A) Income and cost for the managers

• B) Financial conditions of the institutions

• C) Company’s tax liability for a particular year

• D) All the above

The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as

• A) Current assets

• B) Fixed assets

• C) Intangible assets

• D) Investments

Copyrights, Patents and Trademarks are,

• A) Current assets

• B) Fixed assets

• C) Intangible assets

• D) Investments

The debts which are to be repaid within a short period (a year or less) are referred to as,

• A) Current Liabilities

• B) Fixed liabilities

• C) Contingent liabilities

• D) All the above

Rules for Real Account is

• Debit what comes in Credit what goes out

• Debit all Expenses and Lossess credit all incomes and gains

• Debit the receiver credit the giver

• None of the above

The accounts that records expenses, gains and losses are

• (A) Personal accounts

• (B) Real accounts

• (C) Nominal accounts

• (D) None of the above

Debit the receiver & credit the giver is _____ account

• a) Personal

• b) Real

• c) Nominal

• d) All the above

Which of the following is a Real A/c?

• a) Building A/c

• b) Capital A/c

• c) Shyam A/c

• d) Rent A/c

The Process of entering all transaction from the Journal to Ledger is called

• Posting

• Entry

• Accounting

• None of the above

The following is a statement showing the financial status of the company at any given time.

• Trading Account

• Profit and Loss Account

• Balance Sheet

• Cash Book