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Basics of Accounting Bit Bank

1. Father of Double Entry of Book Keeping is -------------. (Luca Pacioli)

2. Double Entry of Book Keeping was introduced in the year ------------.(1494)

3. The most important branches of Accounting are -------------------.

(Financial Accounting, Cost Accounting, Management Accounting)

4. Book of original entry is also known as ------------------. (Journal)

5. The act of keeping accounting records in a systematic manner is called ------

--------. (Book Keeping)

6. The Double Entry system records both ----------- & ---------- aspects of a

business transaction. (Debit & Credit)

7. The receiving aspect of a transaction is ---------------. (Debit)

8. The giving aspect of a transaction is --------------. (Credit)

9. The language of the Business is ------------------. (Accounting)

10. ----------- is a document which serves as an evidence of a transaction.

(Voucher)

11. --------------- is the record made in the books of accounts in respect of a

transaction or event. (Entry)

12. Under the Companies Act 1956, as companies are required to maintain the

books of accounts according to ---------- basis of accounting. (Accrual)

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13. The basic object of Accounting is ------------------.

(To maintain systematic record of financial transaction, to ascertain

profit / loss, to ascertain financial position)

14. Accounting Standard– 1 deals with --------------. (Disclosure of Accounting

Policies)

15. Accounting Standard – 2 deals with -----------------. (Inventories Valuation)

16. Accounting Standard–3 deals with --------------------. (Cash flow statement)

17. Accounting Standard – 6 deals with -------------------. (Depreciation)

18. What is the Accounting equation -------------. (Assets = Capital +

Liabilities)

19. Which financial statement represents the accounting equation ----------------.

(Balance Sheet)

20. As per Traditional Classification of Accounts, accounts can be classified

into -------------. (Personal A/C, Real A/C, Nominal A/C)

21. Accounts related to individuals and a firm is -----------------. (Personal A/C)

22. An account related to assets is -----------------. (Real A/C)

23. Accounts related to expenses, losses, incomes and gains is ------------------.

(Nominal A/C)

24. Capital is a --------------------- account. (Personal)

25. Drawings are a ---------------------- account. (Personal)

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26. Land and Buildings is a -------------- account. (Real)

27. Good will is a ------------------ account. (Real)

28. A salary paid is a ----------------- account. (Nominal)

29. Interest received is a -------------- account. (Nominal)

30. Accounting Standards in India are issued by ------------------.

(The Institute of Chartered Accountants of India) (ICAI)

31. Accounting Standard – 10 deals with ----------------. (Accounting for Fixed

Assets)

32. Accounting Standard – 12 deals with ----------------. (Accounting for

Government Grants)

33. -------------------- is a book in which transactions are recorded in

chronological order. (Journal)

34. Journal is also called as ----------- & --------------. (Book of Prime Entry &

Book of Original Entry)

35. The process of recording a transaction in the journal is called -----------------.

(Journalising)

36. An entry made in the journal is called a ---------------. (Journal Entry)

37. ------------ is a principal book which contains all the accounts. (Ledger)

38. ---------------- is the Book of Final Entry. (Ledger)

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39. ----------- & ----------- are the basic financial statements. (Trading, Profit

and Loss accounts & Balance Sheet)

40. Trading, Profit and Loss account shows ---------------- of the firm.

(Financial Performance i.e. profit or loss)

41. Balance Sheet shows --------------- of the firm. (Financial Position)

42. Trading, Profit and Loss account is prepared --------------. (For a period of

time)

43. Balance Sheet is prepared -------------------. (At a point of time)

44. -------------------- is an establishment for the conduct of trade and commerce.

(Business entity)

45. The owner of the business is called as ------------------. (Proprietor)

46. The amount invested by the proprietor in the business is ----------------.

(Capital)

47. ------------------ is the value of cash or goods withdrawn from the business

by the owner. (Drawings)

48. The commodities, articles or things in which a trader deals are ------------.

(Goods)

49. The person who owes money to the business is ------------. (Debtor)

50. The person to whom the business owes money is ------------. (Creditor)

51. The proprieties or things owned by a business are -----------. (Assets)

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52. The assets which cannot be seen and touched are known as ----------------.

(Intangible assets)

53. Goodwill, Patents, Trade Marks etc. are --------------- assets. (Intangible)

54. The assets which can be convertible into cash within one year are ------------

--- assets. (Current Assets)

55. Cash, Bank, Debtors, Stock, and Bills Receivable etc. are ----------- assets.

(Current Assets)

56. Assets which are held with the business for a long time are -------------.

(Fixed Assets)

57. Land, Buildings, Plant, Machinery, Furniture etc. are --------------- assets.

(Fixed Assets)

58. The financial obligations of an enterprise other than owner’s funds are -----.

(Liabilities)

59. The debit credit rule for the Personal account is ------------. (Debit the

Receiver & Credit the Giver)

60. The golden rule for the Real account is ----------------. (Debit what comes

in & Credit what goes out)

61. The golden rule for the Nominal account is --------------. (Debit all expense

and losses & Credit all incomes and gains)

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62. According to -------------- principle a business is treated as a separate entity

that is distinct from its owner. (Business Entity Concept)

63. According to -------------- principle only those transactions which are

capable of being expressed in terms of money are included in the accounting

records. (Money Measurement Concept)

64. According to ------------- principle the enterprise is normally viewed as a

going concern that is, continuing in operation for the foreseeable future.

(Going concern principle)

65. The Going concern concept is also known as -------------. (Continuity

assumption)

66. According to ---------------- principle revenues and costs are recognized as

they are earned or incurred. (Accrual principle)

67. Accrual principle is also known as ------------. (Revenue recognition

principle)

68. According to ------------- principle the expenses incurred in an accounting

period should be matched with the revenues recognized in that period.

(Matching principle)

69. According to ------------- principle the accounting data should be definite,

verifiable and free from personal bias of the accountant. (Objectivity

principle)

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70. ----------------- assumed that accounting policies are consistent from one

period to another. (Consistency concept)

71. Trading account shows ------------- profit. (Gross Profit)

72. Profit and Loss account shows -------------- profit. (Net Profit)

73. Balance Sheet is also known as -----------------. (Position statement)

74. The Balance Sheet is a ------------- but not an -------------. (Statement,

Account)

75. ------------- is one which is not an actual liability but which may become one

on the happening of some uncertain future event. (Contingent Liability)

76. Sales – Cost of Goods sold = -----------------. (Gross Profit)

77. Gross Profit – Operating expenses = -------------------. (Operating Profit)

78. Operating profit + Non operating incomes – non operating expenses = ------

------. (Net profit)

79. Accounting is defined as ----------------. (An art of recording, classifying,

summering in a significant manner and in terms of money, transactions

and events which are in part at least, of financial nature and

interpreting the results thereof.)

80. The basic sequence in the accounting process can best be described as -------

------. (Transactions, Source document, Journal, Ledger, Trial balance)

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81. The trial balance is -----------. (The list of the balances of all active

accounts)

82. An economic event that involves transfer of money or money’s worth is ----

---------. (Financial transaction)

83. Drawing represents cash withdrawn for personal use and goods withdrawn

for personal use by the ----------. (Owner)

84. A person who owes money of the firm is a -----------. (Debtor)

85. Financial Accounting, Management Accounting, Cost Accounting, Social

Responsibility Accounting, Human Resource Accounting are the ------------

of accounting. (Sub fields)

86. Fundamental accounting assumption as per AS-1 is ----------------------.

(Going Concern, Consistency & Accrual)

87. Economic life of an enterprise is artificially split into periodic intervals in

accordance with -------. (Periodicity Principle)

88. Materiality principle is an exception to the ---------------. (Full disclosure

principle)

89. Personal transactions are distinguished from business transaction, in

accordance with --------------. (Business entity principle)

90. Appending notes to the financial statement is in accordance with ------------.

(Full disclosure principle)

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91. Revenue from sale of products is generally realized in the period -----------.

(In which sale is made)

92. Fixed assets are held in the business for the purpose of -------------. (Earning

revenue)

93. AS in India are issued by the ------------------. (ICAI)

94. It is essential to standardize the accounting principle and policies in order to

-------------------. (Ensure Transparency, Consistency, and

Comparability)

95. In double entry system of book keeping every business transactions affects

-------------. (Two accounts)

96. Journal is the book of -------------. (Original entry)

97. Ledger is the book of ----------------. (Secondary entry)

98. Prepaid salary account is a --------------. (Personal account

99. Salary account is -------------------. (Nominal account)

100. Outstanding salary account is a -----------------------. (Personal account)

Ramesh Babu Nemani, 
Lecturer in Commerce, Hyderabad. 

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