Chapter 1 ACCOUNTANCY : Book Keeping and Accounting — Online MCQ Test
ACCOUNTANCY · CLASS 11 INTER I YEAR · Andhra State Board
Practice Chapter 1 ACCOUNTANCY : Book Keeping and Accounting with a free chapter-wise online MCQ test.
This chapter covers: This chapter covers basic definitions objectives scope importance of book keeping and accounting along with fundamental accounting terms and users of accounting information..
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Chapter 1 ACCOUNTANCY : Book Keeping and Accounting — Important Questions & Answers
The primary objective of book-keeping is to:
- A. Record financial transactions in a systematic manner
- B. Determine the financial position of the business
- C. Interpret the financial data
- D. Provide information to external users
Answer: A. Record financial transactions in a systematic manner
Book-keeping is primarily concerned with the recording stage of accounting, ensuring all financial transactions are systematically documented.
Book-keeping is primarily concerned with the recording stage of accounting, ensuring all financial transactions are systematically documented.
Which of the following is considered the 'Language of Business'?
- A. Economics
- B. Accounting
- C. Management
- D. Statistics
Answer: B. Accounting
Accounting is often referred to as the language of business because it communicates the financial performance of an entity to interested parties.
Accounting is often referred to as the language of business because it communicates the financial performance of an entity to interested parties.
Which of the following is an internal user of accounting information?
- A. Creditors
- B. Government
- C. Management
- D. Researchers
Answer: C. Management
Management requires accounting information for planning, controlling, and decision-making within the organization.
Management requires accounting information for planning, controlling, and decision-making within the organization.
If book-keeping is the foundation, then accounting is the:
- A. Superstructure
- B. Basic material
- C. Raw data
- D. First step
Answer: A. Superstructure
Since book-keeping provides the base data, accounting processes this data further into a structured report or 'superstructure'.
Since book-keeping provides the base data, accounting processes this data further into a structured report or 'superstructure'.
Accounting data is considered 'Reliable' only if it is:
- A. Verifiable and based on evidence
- B. Prepared by the management
- C. Presented in a colorful format
- D. Kept secret from competitors
Answer: A. Verifiable and based on evidence
Reliability in accounting stems from the objective verification of data through source documents like vouchers, invoices, and bills.
Reliability in accounting stems from the objective verification of data through source documents like vouchers, invoices, and bills.