Introduction to accounting Quiz-3

Bookkeeping is ______.

• An art
• A science
• Both an art as well as science
• None of these

___________ is the last step of accounting as a process of information.

• Recording of data in the books of accounts
• Preparations of summaries in the form of financial statement
• Communication of information
• Analysis and interpretation of information

The person, firm, or institution who does not pay the price in cash for the goods purchased or the services received is called ______.

• Creditor
• Proprietor
• Debtor
• None of these

Use of a common unit of measurement and common format of reporting promotes _____.

• Comparability
• Understandability
• Relevance
• Reliability

Cash, goods, or assets invested by the proprietor in the business for earning profit is called ______.

• Profit
• Capital
• Fixed assets
• None of these

Which qualitative characteristics of accounting information are reflected when accounting information is clearly presented?

• Comparability
• Understandability
• Relevance
• Reliability

The process of recording, classifying, and summarising all business transactions in order to know the financial result is called ______.

• Bookkeeping
• Accounting
• journalising
• None of these

Which of the following is not a business transaction?

• Bought furniture of Rs. 10,000 for business
• Paid for salaries of employees Rs. 5,000
• Paid son’s fees from her personal bank account Rs. 20,000
• Paid son’s fees from the business Rs. 2,000

The art of recording all business transactions in a systematic manner in a set of books is called _____.

• Accounting
• Bookkeeping
• Ledger
• None of these

in general financial year shall be from

• 1st april

• 31st march

• 1st january

• 31st december

Answer explanation

The general financial year starts on 1st April and ends on 31st March. This is the correct choice.