FUNDAMENTALS OF ACCOUNTING

Who is known as the Father of Accounting?

• Adam Smith

• Luca Pacioli

• Benjamin Franklin

• Amartya Sen

In double-entry accounting, each transaction will have how many effects?

• ONE

• TWO

• THREE

• FOUR

Accounting means…

• Preparing annual reports only

• Recording personal transactions

• The process of writing, analysing, and reporting financial information

• Paying tax

Who is officially eligible to conduct audit in India?

• Company Secretary

• Cost Accountant

• Chartered Accountant

• Financial Analyst

IFRS stands for…

• International Financial Reporting Standards

• International Finance Regulation System

• Internal Financial Reporting System

• International Fund Reporting Standards

Which of the following is not an objective of accounting?

• Recording business transactions

• Determining profit or loss

• Determining Marketing policy

• Communicating financial information

Which of the following is an importance of accounting?

• Helps in decision-making

• Increases inflation

• Creates monopoly

• Reduces competition

Which of the following is an internal user of financial statements?

• INVESTORS

• COMPETITORS

• MANAGEMENT

• GOVERNMENT

Among the following, identify one external user of financial information:

• MANAGERS

• EMPLOYEES

• SUPERVISORS

• GOVERNMENT

What is profit in terms of accounting?

• Total revenue minus total liabilities

• Surplus of revenue over expenses

• Total assets minus total liabilities

• Total sales minus purchases