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1) What is financial Accounting?

Financial accounting is a specialized branch of accounting that keeps track


of a company's financial transactions.
Financial accounting (or financial accountancy) is the field of
accounting concerned with the summary, analysis and reporting of
financial transactions pertaining to a business.
2) What is Book Keeping?

The work of keeping a systematic record of business transactions


3) What are the objectives of financial Accounting?

To maintain the cash accounts through the Cash Book and to find out
the

Cash

balance

on

any

particular

day.

2. To maintain various other Journals for recording day-to day non


cash

transactions.

3. To maintain various Ledger Accounts to find out the exact amounts of


incomes and expenses or gain and losses or receivables and payables.
4. To furnish information regarding Purchases and Sales, both Cash and
Credit.
5. To find out the net profit or net loss or surplus or deficit for any
particular
6.

To

period.
find

out

the

total

capital

on

particular

date.

7. To find out the positions of assets on a particular date.


4) What is Business Entity Concept?

The business entity concept states that the transactions associated with
a business must be separately recorded from those of its owners or
other businesses.

5) What is Dual Aspect Concept?


This concept assumes that every transaction has a dual effect, i.e. it
affects two accounts in their respective opposite sides.
6) What is going Concern Concept?
This concept states that a business firm will continue to carry on its
activities for an indefinite period of time.
7) What is Money Measurement Concept?
This concept assumes that all business transactions must be in terms of
money that is in the currency of a country. In our country such
transactions are in terms of rupees.
8) What is Accounting Period Concept?
All the transactions are recorded in the books of accounts on the
assumption that profits on these transactions are to be ascertained for a
specified period. This is known as accounting period concept.
9) What is cost concept in Accounting?
Accounting cost concept states that all assets are recorded in the books
of accounts at their purchase price, which includes cost of acquisition,
transportation and installation and not at its market price.
10)

What is Realization concept?


This concept states that revenue from any business transaction should

be included in the accounting records only when it is realized.


11)

What is Accrual Concept?

The meaning of accrual is something that becomes due especially an


amount of money that is yet to be paid or received at the end of the
accounting period. It means that revenues are recognized when they
become receivable.
12)
What is Matching Concept?
The matching concept states that the revenue and the expenses
incurred to earn the revenues must belong to the same accounting
period.
13)
What is meaning of Accounting Concept?
In order to maintain uniformity and consistency in preparing and
maintaining books of accounts, certain rules or principles have been
evolved. These rules/principles are classified as concepts.
14)
15)

What is Accounting Conventions?