Meaning and Scope of Accounting

1. Which of the following is not a subfield of accounting?

2. Purposes of an accounting system include all the following except:

3. Book-keeping is mainly concerned with:

4. Which of the following is not a function of accounting?

5. Financial statements are part of:

6. Financial position of the business is ascertained on the basis of:

7. Users of accounting information include:

8. Financial statements do not consider:

9. On January 1, Sohan paid rent of ₹5,000. This can be classified as:

10. On March 31, 2022 after sale of goods worth ₹2,000, he is left with the closing inventory of ₹10,000. This is:

11. Which of the following is not a business transaction?

12. Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?

13. The double-entry system of accounting was first documented by:

14. Which branch of accounting deals with the identification, measurement, and communication of information to help management in planning, evaluation, and control?

15. A statement that shows the financial position of a business at a particular point in time is:

16. The concept of matching principle in accounting ensures that:

17. Which accounting principle requires that significant accounting policies are disclosed?

18. The value of closing stock is shown in the financial statements under:

19. Which accounting assumption states that the business will continue to operate indefinitely?

20. Depreciation is recorded in accounting books to:

21. In accounting, goodwill is classified under:

22. A statement showing the inflow and outflow of cash during a specific period is called:

23. In double-entry bookkeeping, every transaction affects:

24. Which of the following is a contingent liability?

25. Provision for bad debts is an example of which accounting principle?

26. Which qualitative characteristic of accounting ensures that financial statements are comparable across periods?

27. The fundamental accounting equation is:

28. A company purchased machinery for ₹5,00,000. This transaction affects:

29. The method of inventory valuation based on the assumption that the goods purchased first are sold first is known as:

30. The primary objective of financial accounting is to:

31. Which of the following is an example of an intangible asset?

32. The concept of conservatism in accounting means:

33. A business pays rent in advance for the next six months. This is treated as:

34. If total liabilities increase by ₹20,000 and assets increase by ₹30,000, the capital would:

35. Which of the following best describes the function of cost accounting?

36. The difference between current assets and current liabilities is known as:

37. The cash book is used to record:

38. A credit sale is recorded in which of the following books?

39. Which financial statement shows the financial performance of a business over a period of time?

40. A business incurs a loss when:

41. In accounting, outstanding salaries are classified as:

42. The term ‘dual aspect’ in accounting means:

43. The process of verifying accounting records and financial statements is known as:

44. Accrued interest is classified as:

45. Which of the following is an example of a capital expenditure?

46. An increase in accounts receivable will have what effect on cash flow?

47. The closing balance of cash is recorded in which financial statement?

48. The difference between gross profit and net profit is due to:

49. The concept of materiality in accounting states that:

50. Capital introduced by the owner into the business is recorded as:

51. If the total liabilities of a business increase by ₹50,000, how will it affect the accounting equation if assets remain unchanged?

52. Which of the following is recorded as a capital receipt?

53. The main objective of management accounting is to:

54. If a business acquires a loan to purchase new machinery, the loan is classified as:

55. A debit balance in the profit and loss account indicates:

56. Which of the following would increase the working capital of a business?

57. Which of the following terms refers to recording transactions at their original cost?

58. The balance sheet equation is based on which of the following principles?

59. Which financial statement shows the amount of profit or loss for a specific period?

60. Which of the following is NOT considered a part of the accounting cycle?