Unit 6: Introduction to Accounting — Online MCQ Test
COMMERCE & ACCOUNTANCY · CLASS 11 INTERMEDIATE 1 YEAR · Telangana State Board
Practice Unit 6: Introduction to Accounting with a free chapter-wise online MCQ test.
This chapter covers: This chapter introduces accounting definitions objectives book-keeping differences accounting principles concepts conventions double-entry bookkeeping system accounting equation an....
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Unit 6: Introduction to Accounting — Important Questions & Answers
What is accounting?
- A. A system of recording, classifying, summarising and interpreting financial transactions
- B. A system of managing only cash receipts
- C. A method of calculating production output
- D. A process of selling goods on credit
Answer: A. A system of recording, classifying, summarising and interpreting financial transactions
Accounting is the process of identifying, recording, classifying, summarising and communicating financial information.
Accounting is the process of identifying, recording, classifying, summarising and communicating financial information.
Which is the main objective of accounting?
- A. To prepare advertisement for the business
- B. To provide financial information useful for decision-making
- C. To fix the selling price of goods
- D. To increase the number of employees
Answer: B. To provide financial information useful for decision-making
The main objective of accounting is to provide useful financial information to users for decision-making.
The main objective of accounting is to provide useful financial information to users for decision-making.
Which of the following is NOT a difference between book-keeping and accounting?
- A. Book-keeping records transactions, accounting interprets them
- B. Book-keeping is a mechanical process, accounting is analytical
- C. Book-keeping is done only by auditors, accounting only by customers
- D. Accounting helps in decision-making, book-keeping mainly records data
Answer: C. Book-keeping is done only by auditors, accounting only by customers
Book-keeping and accounting are both business functions, not activities of auditors and customers. The other options correctly state differences between them.
Book-keeping and accounting are both business functions, not activities of auditors and customers. The other options correctly state differences between them.
A business purchased furniture for ₹20,000 on credit. Which entry is correct?
- A. Furniture A/c Dr. To Cash A/c
- B. Purchases A/c Dr. To Creditors A/c
- C. Furniture A/c Dr. To Creditors A/c
- D. Creditors A/c Dr. To Furniture A/c
Answer: C. Furniture A/c Dr. To Creditors A/c
Furniture is an asset, so it is debited. Since it was bought on credit, Creditors A/c is credited.
Furniture is an asset, so it is debited. Since it was bought on credit, Creditors A/c is credited.
Which of the following is the correct journal entry for goods sold for cash?
- A. Cash A/c Dr. To Sales A/c
- B. Sales A/c Dr. To Cash A/c
- C. Purchases A/c Dr. To Cash A/c
- D. Cash A/c Dr. To Purchases A/c
Answer: A. Cash A/c Dr. To Sales A/c
When goods are sold for cash, cash increases and is debited, while sales is credited.
When goods are sold for cash, cash increases and is debited, while sales is credited.