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Financial Accounting quiz dtd. 18.09.25

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Primary purpose of accounting is (select all correct options)

a)

Recording daily business transactions

b)

Assessing income and financial position

c)

Reporting the users of accounting information

d)

Analysis and interpretation of financial information

2.

Choose the correct Accounting equation

a)

Assets= Capital + Liabilities

b)

Capital= Assets + Liabilities

c)

Assets + Capital= Liabilities

d)

Assets= Capital - Liabilities

3.

Credit sales are recognised under which basis of accounting?

a)

Cash Basis

b)

Accrual Basis

c)

Both

d)

None

4.

Trial Balance and Final Accounts can be prepared under Single Entry System of Accounting

a)

True

b)

False

5.

Prepaid expenses are accounted following which accounting principle?

a)

Cost

b)

Matching

c)

Accrual

d)

Industry Practice

6.

Which among the following is an internal user of accounting information

a)

Investors

b)

Empkoyees

c)

Creditors

d)

Customers

7.

As per Going Concern concept , a business entity has a

a)

Long life

b)

Short life

c)

Indefinite life

d)

None

8.

Purchase of calculator recorded as expense instead of asset following the principle of

a)

Disclosure

b)

Materiality

c)

Consistency

d)

Conservatism

9.

Making provision for doubtful debts is as per the accounting convention of

a)

Materiality

b)

Consistency

c)

Full disclosure

d)

Conservatism

10.

Accounting Standards Board in India was constituted in the year

a)

1967

b)

1973

c)

1977

d)

1991