Viva questions

1. Advantage of project work:

a) It helps in applying theoretical knowledge to the practical or real-life
problems.
b) It helps in developing analytical skills
2. What is capital?
Ans: amount invested by the proprietor in business enterprise
3. Liabilities: amount which the firms owe to outsiders
4. Assets: valuable resources owned by business enterprises which can be
measured in terms of money
5. Drawings: any cash or value of goods withdrawn by the owner for
personal use
6. Journal: a book of original entry in which transactions are recorded.
7. What is journalising?
Ans: Process of recording transactions in the journal
8. Why is the journal called a book of original entry?
Ans: because all the transactions are entered first in this book
9. Ledger: books which contains a classified and permanent record of all the
transactions of a business is called ledger
10.What is double entry system of book keeping:
Ans: it refers to a system of accounting in which every transaction affects
two accounts simultaneously
11.Trial balance: statement prepared with debit and credit balance of ledger
accounts to test the arithmetical accuracy book
12.Trading account: one of the financial statement which shows the result of
buying and selling of goods and services of an accounting period.
13.Profit and loss account: It shows overall result of business operations ie;
net profit earned or net loss incurred during an accounting period
14.Balance sheet: it refers to the statement of assets and liabilities of an
enterprise
15.Current ratio: it is the relationship between current assets and liabilities of
an enterprise
Current ratio= current assets/ current liabilities
16.Cash book: all transactions relating to cash and bank are recorded directly
from source document
17. what is working capital?
Working capital= current assets – current liabilities
18.What is meant by cash flow statement?
It is statement of inflow and outflow of cash and cash equivalents
19. Operating activity: it is the main revenue generating activities of an
enterprise
20. Investing activity: it is the purchase and sale of long-term assets
21. Financing activity: activities that result in change in capital and
borrowings of the enterprise
22.What is meant by ratio?
It is the relationship between two figures expressed in arithmetical terms