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WorksheetsFundamentals of financial accounting
Total questions: 15
Worksheet time: 8mins
Which statements about book-keeping and accounting are correct?
1 Accounting is performed periodically rather than daily.
2 Accounting relies on having accurate book-keeping records.
3 Book-keeping includes the preparation of financial statements.
4 Book-keeping involves the recording of financial transactions.
1, 2 and 4
1 and 3
2, 3 and 4
2 and 4 only
Which item is an asset?
an amount owing to credit suppliers
interest accrued on bank loan
rent received in advance from tenant
an amount owing by credit customers
What is prepared by a book-keeper?
appropriation account
cash book
income statement
statement of financial position
The following is a statement showing the financial status of the company at any given time.
Trading Account
Profit and Loss Account
Balance Sheet
Cash Book
The Process of entering all transaction from the Journal to Ledger is called
Posting
Entry
Accounting
None of the above
Which of the following is a Real A/c?
a) Building A/c
b) Capital A/c
c) Shyam A/c
d) Rent A/c
Debit the receiver & credit the giver is _____ account
a) Personal
b) Real
c) Nominal
d) All the above
The accounts that records expenses, gains and losses are
(A) Personal accounts
(B) Real accounts
(C) Nominal accounts
(D) None of the above
Rules for Real Account is
Debit what comes in Credit what goes out
Debit all Expenses and Lossess credit all incomes and gains
Debit the receiver credit the giver
None of the above
Copyrights, Patents and Trademarks are,
A) Current assets
B) Fixed assets
C) Intangible assets
D) Investments
The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as
A) Current assets
B) Fixed assets
C) Intangible assets
D) Investments
Accounting furnishes data on
A) Income and cost for the managers
B) Financial conditions of the institutions
C) Company’s tax liability for a particular year
D) All the above
What does the going concern assumption in accounting assume?
A company will not meet its financial obligations and objectives in the future
A company will dissolve or go bankrupt in the near future
A company will remain in operation for the foreseeable future
A company will not report financial information in the future
What is the purpose of GAAP?
To oversee the operations of public companies
To enforce accounting laws
To regulate the financial markets
To provide consistency and clarity in financial reporting
What does GAAP stand for?
Generally Acknowledged Accounting Procedures
Generally Accepted Accounting Principles
Generally Accepted Accounting Procedures
Generally Acknowledged Accounting Principles
