CA CPT - Basics of Accounting - Meaning and Scope of Accounting Theory

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Question - 1

Accounting is defined as ----------

  • A 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 financial character and interpreting the results
  • B A systematic and regular record of events affecting a firm to obtain a clear financial picture
  • C A method of ascertaining Profit & Loss
  • D Nothing but Book Keeping

Question - 2

Accounting in modern age is regarded as:

  • A The art of recording, classifying and summarizing the business transactions in monetary units
  • B The language of business.
  • C The source of business information.
  • D All the above

Question - 3

_____________ is root cause for financial accounting?

  • A Stewardship accounting
  • B Social accounting
  • C Management accounting
  • D Human resource accounting

Question - 4

Purchases during the year were 20,000. Expenses amounted to 20,000.Sales were 250,000.The calculated profits for year Rs. 30,000.The followed the concept of:

  • A Matching
  • B Periodicity
  • C Going concern
  • D Cost Accounting

Question - 5

Accounting means recording of ____________

  • A Transactions.
  • B Events.
  • C Both (a) and (b)
  • D Neither (a) nor (b).

Question - 6

Accounting is also defined as an 'Information System' because

  • A The function of Accounting is to provide quantitative information, primarily financial in nature about economic entities.
  • B It is a system which provides information
  • C Accounting provides required information for anyone seeking it
  • D All of the above

Question - 7

Money owed from an Outsider is an-

  • A Asset
  • B Liabillity
  • C Expense
  • D Capital

Question - 8

Fixed assets are assets which are -

  • A Long Term Assets where benefits from it is likely to extend beyond one accounting period
  • B Assets, which a business firm gets in the beginning of the year
  • C Assets, which are financed by bank loan.
  • D Immovable assets like Land, Building etc.

Question - 9

The obligations of an enterprise other than owner's fund are known as -

  • A Assets
  • B Liabilities
  • C Capital
  • D None of these.

Question - 10

Unpaid expenses are -

  • A Outstanding Liabilities
  • B Prepaid expenses
  • C Unaccrued expenses
  • D All of these