Accounting Basic Concepts-1

Accounting is the art of ______, _______ and ________ 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

• Process, recording, summarizing

• Recording, Summarizing,

  Analysing

• Recording, Analysing, Summarizing

• Recording, Classifying, Summarizing

First step in the process of Accounting is ______

• Summarizing

• Recording

• Identifying

• Measuring

The incomplete system of accounting is known as ________

• Double Entry System

• Cash System

• Single Entry System

• Accrual System

Rent paid for 10 months at the rate of Rs.10,000 p.m. How much will be shown as Expenses for the Year, assuming the business is following the Cash Basis of Accounting

• Rs.10,000

• Rs.1,00,000

• Rs.1,20,000

• Rs.80,000

New Policy Insurance Premium Rs.48,000 per annum was paid on 1st December 2021. The accounting year ends on 31st March 2022. Amount of current year Insurance Expenses if we are following the Accrual Basis of Accounting?

• Rs.48,000

• Rs.16,000

• Rs.32,000

• Rs.64,000

According to this principle, the personal transactions of the Owner/Proprietor are not to be recorded in the books of account

• Dual Aspect Concept

• Accounting Period Concept

• Business Entity Concept

• Money Measurement Concept

According to this principle, every transaction is to be recorded on the debit side of one account and on the credit side of another account

• Dual Aspect Concept

• Accounting Period Concept

• Business Entity Concept

• Money Measurement Concept

According to this principle, books of account must be closed once in every 12 months

• Dual Aspect Concept

• Accounting Period Concept

• Business Entity Concept

• Money Measurement Concept

According to this principle, qualitative information is not recorded int he book of account

• Dual Aspect Concept

• Accounting Period Concept

• Business Entity Concept

• Money Measurement Concept

According to this principle, Expenses of current year are considered even if they are not paid

• Consistency

• Conservatism

• Cash

• Accrual