Chapter 1: Introduction to Accounting — Online MCQ Test
ACCOUNTANCY · CLASS 11th · Tamil Nadu State Board
Practice Chapter 1: Introduction to Accounting with a free chapter-wise online MCQ test.
This chapter covers: This chapter introduces fundamental accounting concepts definitions objectives and book-keeping differences. Students explore users of accounting information branches of accounting....
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Chapter 1: Introduction to Accounting — Important Questions & Answers
Who is considered the father of modern accounting?
- A. Adam Smith
- B. Luca Pacioli
- C. F.W. Taylor
- D. Henry Fayol
Answer: B. Luca Pacioli
Luca Pacioli introduced the double-entry book-keeping system in his work in 1494.
Luca Pacioli introduced the double-entry book-keeping system in his work in 1494.
Which of the following is the first step in the accounting process?
- A. Summarizing
- B. Recording
- C. Identification of financial transactions
- D. Analysis and interpretation
Answer: C. Identification of financial transactions
The accounting process begins with identifying financial transactions from source documents.
The accounting process begins with identifying financial transactions from source documents.
Which of the following is an external user of accounting information?
- A. Employees
- B. Managers
- C. Potential Investors
- D. Board of Directors
Answer: C. Potential Investors
Potential investors need accounting information to assess the viability of investing in the business.
Potential investors need accounting information to assess the viability of investing in the business.
If a firm uses 'Social Responsibility Accounting', what is it primarily measuring?
- A. Net profit after tax
- B. Contribution of business to the society
- C. Share price fluctuations
- D. Inventory turnover ratio
Answer: B. Contribution of business to the society
Social responsibility accounting aims to disclose the impact of an organization on the community and environment.
Social responsibility accounting aims to disclose the impact of an organization on the community and environment.
Why is it mandatory for a public company to maintain accounts according to professional standards?
- A. To satisfy the personal curiosity of the owner
- B. To ensure transparency for shareholders and creditors
- C. To increase the daily sales of the company
- D. To avoid paying any income tax
Answer: B. To ensure transparency for shareholders and creditors
Public companies are accountable to the public and investors, necessitating standardized reporting to maintain trust.
Public companies are accountable to the public and investors, necessitating standardized reporting to maintain trust.