Introduction to accounting Quiz-2

The first step of accounting is :

• collection and identification of financial transactions
• communicating of financial information
• summarising of fianancial transactions
• analysis and interpretation

Book keeping is which stage of accounting?

• primary stage
• secondary stage
• professional stage
• Advance stage

when both aspect of transaction is recorded, it is known as:

• single entry system
• Double entry system
• Bhahi khata system
• Banking system

What is the next step of accounting after identifying and measuring the financial transactions?

• Classifying
• summarising
• recording
• analysis and interpretation

Which of the following is not a limitation of accounting?

• window dressing
• It ignores the changes of price level changes
• It ignores qualitative elements
• It can be used as an evidence in court

Accounting is the __________.

• Part of window dressing
• language of business
• Record of non monetory transactions
• Tax liability

Which of the following steps of accounting leads to the preparation of profit and loss account and Balance sheet of the firm?

• Recording
• classifying
• summarising
• analysis and interpretation

Which of the following is not an advantage of accounting?

• Replaces memory
• evidence in court
• may lead to window dressing
• helpful in comparative study

which of the follwing are business transactions?

• receive order from sale fo goods
• Estimate profit of the year is 60,000.
• Typewriter purchased for office use 3,000
• purchased machinery

Double entry system was given by

• F.w Taylor
• Henry Fayol
• Fra lucas pacioli
• smith