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Class 11 Introduction to Accounting

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

An Asset is...

a)

An asset is a resource currently owned and controlled by a business as a result of a past transaction

b)

An asset is a resource owned i the past by a business as a result of a past transaction

c)

An asset is something that costs money

2.

Which of the following is an example of a liability?

a)

Loan

b)

Building

c)

Sales

d)

Accounts receivable

3.

Which of the following is not a branch of accounting?

a)

cost accounting

b)

financial accounting

c)

book keeping and accounting

d)

management accounting

4.

Which is the first step of accounting process?

a)

Classifying

b)

analyzing and interpretation

c)

recording

d)

financial statements.

5.

We record ___________in the books of accounts.

a)

financial transactions

b)

no financial transactions

c)

both financial and non financial transactions

d)

none of these

6.

Qualitative characteristics of accounting information are

a)

Relevance

b)

Reliability

c)

Comparability

d)

All of theses

7.

End product of accounting is __________and _____________of accounting.

(a)  

8.

Which one of the following is not an external user of accounting information?

a)

Investor

b)

Creditor

c)

Manager

d)

Customer

9.

Who is known as the father of accounting?

a)

Leonardo da Vinci

b)

Fra Luca Pacioli

c)

Al Khawarizmy

d)

Al Mazendarany

10.

The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as:

a)

Financial Accounting

b)

Managerial Accounting

c)

Tax Accounting

d)

Forensic Accounting

11.

last step of accounting process is-

a)

classifying

b)

summarising

c)

recording

d)

communicating

12.

The basic purpose of accounting is to

a)

Provide information for decision-making

b)

Compute the applicable income tax

c)

Comply with state requirements

d)

Determine the net income of a company Determine the net income of a company

13.

Transactions and events that cannot be measured in money terms are not recorded in the books of accounts. It is due to Money Measurement Concept.

a)

True

b)

False

14.

The proprietor is treated as a creditor to the extent of his capital according to:

a)

(a) Cost Concept

b)

(b) Business Entity Concept

c)

(c) Going Concern Concept

d)

(d) Materiality Concept

15.

In Accounting, Goods is defined as:

a)

(a) Items which purchased for own consumption.

b)

(b) Items which are purchased for charity.

c)

(c) Items which are purchased for resale.

d)

(d) Items without any defect.

16.
Which assumption states that a business will continue to operate into the future?
a)
Accounting Entity Assumption
b)
Going Concern Assumption
c)
Historical Cost Assumption
d)
Monetary Assumption
17.
A firm sells goods for P 55, 000 on 25th March 2005 and the payment is not received until 10th April 2005, the amount is due and payable to the firm on the date of sale i.e. 25th March 2005.
a)
Periodicity Principle
b)
Consistency
c)
Accrual Principle
d)
Adequate Disclosure Principle
18.
Jeff's Construction, LLC bought a piece of equipment in 2001 for P 10,000. Today this piece of equipment is only worth P 2,000. Jeff would still report the equipment at its purchase price of P 10,000, less depreciation, even though its current fair market value is only P 2,000.
a)
Historical Principle
b)
Business Entity
c)
Accrual Principle
d)
Adequate Disclosure Principle
19.
Which principle/guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?
a)
Historical Principle
b)
Business Entity
c)
Accrual Principle
d)
Adequate disclosure Principle
20.

The business owner paid his son's tuition fee and the amount paid is not considered a business transaction. Which of the following concept is being applied?

a)

Separate legal entity concept

b)

Historical cost concept

c)

Duality concept

d)

Consistency concept