Basic Accounting

Accounting is a process of identifying, recording, .......... and reporting economic information to decision makers

• calculating

• summarizing

• writing

• auditing

........is product of Accounting

• Company performance

• Employee pension

• Financial statement

• Letter to shareholder

A report in which showed assets, firm capital and liabilities is....

• Income statement

• Balance sheet

• Equity report

• Cash flow report

Mr. Moonrise started a business for buying and selling of stationery with ₹5,00,000 as an initial investment. Of which he paid ₹1,00,000 for furniture, ₹2,00,000 for buying stationery items. The amount of capital will be

• ₹2,00,000

• ₹5,00,000

• ₹1,00,000

• ₹3,00,000

The primary objective of financial accounting is to provide information to

• A) Management

• B) Investors

• C) Government

• D) Employees

Which of the following is considered a liability?

• A) Cash

• B) Accounts Payable

• C) Inventory

• D) Retained Earnings

The accounting equation is represented as

• A) Assets = Liabilities + Equity

• B) Assets = Revenue - Expenses

• C) Liabilities = Assets + Equity

• D) Equity = Assets - Liabilities

Which financial statement provides information about a company's cash receipts and cash payments?

• A) Balance Sheet

• B) Income Statement

• C) Cash Flow Statement

• D) Statement of Retained Earnings

Depreciation is applied to which type of asset?

• A) Current Assets

• B) Intangible Assets

• C) Fixed Assets

• D) Liquid Assets

Which of the following is an example of an intangible asset?

• A) Building

• B) Patent

• C) Inventory

• D) Equipment