Introduction to accounting Quiz-1

Accounting is

• only an art

• only a science

• art and science both

• neither art nor science

Answer explanation

Accounting is both an art and a science because it requires creativity in interpreting financial data and follows a systematic approach in recording and analyzing transactions.

The work of accounting begins:

• Where the work of book- keeping begins
• Where the work of book- keeping ends
• where the books are not written
• where there is no object of keeping the books

The work which is included in accounting are:

• To record the business into journal
• To post the business transactions into the ledger
• To balance the accounts opened in the ledger
• To prepare profit and loss account and the balance sheet

Book keeping means:

• To keep the books in an almirah

• To record the business transaction in the account books of the trading concern

• To record the business activities by a trader in his diary

• To write all the books

Answer explanation

Book keeping means recording business transactions in account books of the trading concern. This choice accurately describes the process of book keeping.

characteristics of accounting are:

• Recording and classification

• summary

• analysis and interpretation

• All of the Above

Answer explanation

Accounting involves recording, classifying, summarizing, analyzing, and interpreting financial information. All of the above options correctly describe the characteristics of accounting.

Accounting records:

• Financial transactions
• Financial and non financial transactions
• both of the above

• none of the above

The advantage of accounting are :

• Knowledge of important information
• proof in court
• helpful in the determination of tax- liability
• All of the above

The limitations of accounting information are

• Based on accounting concept and conventions
• influenced by personal jdgements
• unsuitable for forecasting
• All of the above

Users of accounting information are

• The owner of the business
• investors
• creditors
• All of the above

Accounting statements :

• Not fully accurate

• fully accurate

• partly accurate

• totally inaccurate

Answer explanation

Accounting statements are not fully accurate as they may contain errors or omissions.