FINANCIAL ACCOUNTING

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B.B.A – Ist Sem
Important Questions
1. Distinguish between Book-keeping and Accountancy and describe their advantages
2. Discuss the objectives of Accounting. State the users of Financial Accounting.
3. Give the meaning of financial accounting and state its limitations.
4. State and explain the systems of financial accounting.
5. What is double Entry System? Discuss the advantages and importance of Double Entry
System.
6. State the meaning of capital expenditure and revenue expenditure. What is the difference
between them?
7. Write short notes on deferred revenue expenditure.
8. Give at least ten examples of capital expenditure and revenue expenditure.
9. What is meant by Journal? What are the rules of recording transactions relating to real accounts
in it?
10. What is ledger? What is its importance? Describe the rules of posting in it.
11. What is a trial balance? Why is it prepared? Explain the errors which are not disclosed by trail
balance.
12. What is a cash book? State its various types? Describe its merits.
13. What is the need for the preparation of Bank Reconciliation Statement periodically? Explain.
14. What do you understand by rectification of Errors? What are the advantages of such
rectification?
15. What are the various types of errors in accounts/ Explain?
16. What do Balance Sheet, Manufacturing Account, Trading Account and Profit & Loss Account
mean? Why are they prepared?
17. Explain the uses of Balance Sheet information. What information is conveyed by the Balance
Sheet to the outsiders?
18. What is the meaning of depreciation? Name the different methods of providing for
depreciation. Explain with examples any two of these methods.
19. What is Hire -Purchase System? Give its merits and demerits.
20. What is the meaning of Installment Payment System? What is the difference between Hire-
Purchase System and Installment Payment System?

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SUBRAMANIAM.C, M.Com, L.L.B. H.O.D, Dept of Commerce