Basic Accounting

1.The revenues and expenses of a company are displayed in which statement?

• 1. Balance Sheet

• 1. Cash Flow Statement

• Income Statement

• 1. None of the above

Answer explanation

The income statement displays all the revenues and expenses of a company.

2.The main Purpose of Financial Accounting is?

• 1. To Provide financial information to shareholders

• To maintain balance sheet

• 1. To minimize taxes.

• 1. To keep track of liabilities

Answer explanation

The purpose of financial accounting is to provide financial information to shareholders.

3. 3.What are the long-term assets which do not have any physical existence?

• 1. Intangible Assets

• 1. Tangible Assets

• 1. Current Liabilities

• 1. Current Assets

Answer explanation

Intangible Assets have no physical existence. For Example, Goodwill, Brand Recognition, Patents etc. are known as Intangible Assets.

The Expenses, Profit & Loss of an organisation are recorded in which account?

• 1. Current Account

• 1. Personal Account

• 1. Nominal Account

• 1. None of the above

Answer explanation

The nominal account records all the transactions of a business for one fiscal year.

Which person owes an amount to a business organisation for buying goods and services on a credit basis?

• 1. Creditors

• 1. Debtors

• 2. Owner

• 2. None of the above

Answer explanation

Debtors are the persons who owe an amount to a business organisation for buying goods and services on a credit basis.

. When are balance sheets prepared?

• 1. Quarterly

• 1. Yearly

• 1. Monthly

• 1. None of he above

Answer explanation

Balance Sheets are prepared yearly as it displays the liabilities and assets of a company.

Recording financial transaction is part of?

• 1. Accounting

• 1. Book Keeping

• 1. Data Entry

• 1. Journal

Answer explanation

Bookkeeping refers mainly to the record-keeping aspects of financial accounting, and involves preparing source documents for all transactions, operations, and other events of a business.