Basic Accounting Multiple Choice Questions and Answers. These Questions are useful for Banking Examinations. Here we will introduce you to some basic accounting principles, accounting concepts, and accounting terminology.
1) Accounting is defined as ?
2) What is the method of summarizing and classifying the record of financial transaction in monetary terms ?
3) Accounting is also defined as an 'Information System' because ?
4) Accounting in modern age is regarded as ?
5) Accounting is the process of matching
6) Choose the correct statement
7) Which of the following event is subject matter of Accounting ?
8) Choose the incorrect statement
9) Management Accounting
10) Which of the following is not available in the Financial Statements of a Company ?
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1) Accounting is defined as ?
- An art of recording,classifying and summarizing in a significant manner and in terms of money,transactions and events which are in part at least,of a financial character and interpreting the results thereof.
- A systematic and regular record of events clear financial picture
- A method of ascertaining profits & loss
- Noting but book keeping
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Answer = An art of recording,classifying and summarizing in a significant manner and in terms of money,transactions and events which are in part at least,of a financial character and interpreting the results thereof.
2) What is the method of summarizing and classifying the record of financial transaction in monetary terms ?
- Book keeping
- Auditing
- Accountancy
- Cost Accounting
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Answer = Accountancy
3) Accounting is also defined as an 'Information System' because ?
- The function of accounting is to provide quantitative information,primarily financial in nature about economic entities
- It is a system which provides information
- Accounting provides required information for anyone seeking it
- All of above
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Answer = The function of accounting is to provide quantitative information,primarily financial in nature about economic entities
4) Accounting in modern age is regarded as ?
- The art of recording,classifying and summarizing the business transactions in monetary units
- The language of business
- The source of business information
- All of above
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Answer = The art of recording,classifying and summarizing the business transactions in monetary units
5) Accounting is the process of matching
- Benefits and Costs
- Revenues and Costs
- Cash inflows and outflows
- Potential and real performance
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Answer = Revenues and Costs
6) Choose the correct statement
- Keeping systematic recording of business transaction is not the function of financial accounting
- Accounting is concerned with monetary transactions
- Accounting is concerned with past as well as future events
- Business and Businessman are one and the same from accounting point of view
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Answer = Accounting is concerned with monetary transactions
7) Which of the following event is subject matter of Accounting ?
- Death if key executive of the business/company
- Strike of workers
- Payment of Rs.10,000 to bank in discharge of outstanding loan
- Marriage of the daughter of the Managing Director of the Company
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Answer = Payment of Rs.10,000 to bank in discharge of outstanding loan
8) Choose the incorrect statement
- Accounting is the language of business
- Transaction are recorded in quantitative terms only
- Accounting is the art of recording,classifying and summarizing
- Transaction and events of financial character are subject matter of accounting
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Answer = Transaction are recorded in quantitative terms only
9) Management Accounting
- Is a clerical work
- Is accounting for future
- Is a recording technique of the management related transactions
- Is an analysis of the past business activities
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Answer = Is accounting for future
10) Which of the following is not available in the Financial Statements of a Company ?
- Total Sales
- Total Profit and Loss
- Loss from Fire
- None of above
Show Answer
Answer = None of above
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