Chapter I Introduction to Accounting

1. A person who owes money to the business is a ...................
   (Debtor)|
   
   
2. Amount spent for purchasing fixed asset is a ............................
   (Capital expenditure)
   
   
3. Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented.............................
   (Understandability)
4. Find out the odd one out and state reason.
   a) Share capital b) Debenture c) sundry creditors d) Long term loans.
   (Sundry creditors others are long term liabilities.)
   
   
5. Value of goods remaining unsold at the end of an accounting period is termed as.................
   (closing stock)
   
   
6. Arun, a sole trader, draw Rs. 500 from the business for paying tuition fees to his child. This amount is termed as..................
   (Drawings)
   
   
7.  ........................assets are those assets, which do not have physical form
   (Intangible)
   
   
8. The amount earned by a business concern through sale of its products or providing services to customers is called ..............................
   (Revenue)
   
   
9. The asset bought for long term use in the business are termed as ...............asset
   (Fixed)
   
   
10. Analysis of recorded data to bring entries of similar nature to one place is called .............
    (classifying)
    
    
11. A person who entitled to get money from the business is termed as..................
    (creditor)
    
    
12. Information in financial business is based on .......... Transaction
    (economic)
    
    
13. All claims against the business are called ....................
    (Equity)
    
    
14. .................... transaction is one wherein payment or receipt of money is postponed for a future date.
    (credit)
    
    
15. The ledger folio column of the journal is used to ..........
    (Record the page number of the ledger account.)
    
    
16. Excess of assets over liability is........................
    (capital)
    
    
17. Properties used in the business is .............
    (Asset)
    
    
18. Claim by creditors to the property of a business ...................
    (liability)
    
    
19. Owner’s right and claims to the business.................
    (capital)
    
    
20. Asset can be converted in to cash with in an year is called..........
    (current asset)
    
    
21. The current liabilities are used to denote those liabilities which are payable.............
    (with in an year)
    
    
22. Discount allowed to a customer is ...................... To the business
    (Expense)
    
    
23. The cost incurred by a business in the process of earning revenue is..................
    (expense)
    
    
24. Accounting provides information on
    (A) Cost and income for managers (B) Company’s tax liability for a particular year (C) Financial conditions of an institution (D) All of the above
    (Ans: D)
    
    
25. The long term assets that have no physical existence but are rights that have value is known as
    (A) Current assets (B) Fixed assets (C) Intangible assets (D) Investments
    (Ans: C)
    
    
26. The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
    Current assets
    
    
27.  The following is not a type of liability
    (A) Short term (B) Current (C) Fixed (D) Contingent
    (Ans: A)
    
    
28. The liabilities that are payable in more than a year
    (Fixed liabilities)
    
    
29. Any written evidence in support of a business transaction is called
    ( Voucher)
    
    
30. The accounts that records expenses, gains and losses are
    (Nominal accounts )
    
    
31. The process of entering all transactions from the journal to ledger is called
    (Posting )