Tag: commercial applications

Questions Related to commercial applications

________ is the recording phase of Accounting system.

commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Book keeping

  2. Ledger posting

  3. Balancing

  4. Accounting

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Correct Option: A
Explanation:

All financial transactions must be recording in the books of accounts of the business. Recording of transaction is the first steps in the accounting system. If any expense is incurred, this has to be recorded first to initiate the accounting process.

Book keeping is mainly concerned with which of the following features?

commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. It is concerned with financial data recording.

  2. It is concerned with designing the systems of recording, classifying and summarizing the recorded data.

  3. It is concerned with data interpreting for internal and external users.

  4. all of the above

Show answer
Correct Option: A
Explanation:

Book keeping and accounting terms are normally used as interchangeably but actually this is not the case. Book keeping is basically concerned with recording of a transaction in books of account of any business. It is to be noted that only financial data are to be recorded.

Which of the following is not dependent on accounting?

commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Management accounting

  2. Cost accounting

  3. Financial accounting

  4. Book-keeping

Show answer
Correct Option: D
Explanation:

Book Keeping and Accounting are two different terms which are often used interchangeably. 

Book keeping is a method of recording all the business transactions. This work is normally performed by the junior executive. 
Accounting is a term which analyze and interpret the data which are recorded in the books of accounts through book keeping. 

Accounting starts when book keeping ends hence book keeping is not dependent on accounting. 

Financial statements are a part of ___________.

commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. accounting

  2. book-keeping

  3. all of the above

  4. none of the above

Show answer
Correct Option: A
Explanation:

Financial Accounting is a process of classifying, summarizing and interpreting the financial information recorded in the books of account. Financial statements are prepared to know the financial position of the organization. 

Its part of accounting. 

Which of the following is not a sub-field of accounting?

commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Management accounting.

  2. Cost accounting.

  3. Financial accounting.

  4. Book-keeping.

Show answer
Correct Option: D
Explanation:
The Main Branches or Types or Sub-fields of Accounting include inflation accounting, financial accounting, Human resource accounting, managerial accounting, Social Responsibility Accounting, cost accounting, Tax or value-added accounting. 
Book-keeping is the recording of financial transactions and is part of process of accounting, not a sub field of accounting.

Which of the following statement is correct?

commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Fixed assets must always be shown at market value

  2. Book-keeping and accounting are different terms

  3. Owner's Equity $=$ Assets + Liabilities

  4. Patents is an example of current asset

Show answer
Correct Option: B
Explanation:

Book Keeping and accounting are different terms. Book Keeping and Accountancy are often used interchangeably but these are not identical. Book keeping is an art , accountancy is a science. The work of book keeping is handled by the junior staff  whose primary responsibility is to record all the transactions in various books maintained by the business. The information contain in these books itself doe not provide any financial position until these information is analyse and interpreted in a logical manner. This task is done by the accountants. 

In which year was the Chartered Accountants Institute was set up ?

commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. 1947

  2. 1948

  3. 1949

  4. 1950

Show answer
Correct Option: C
Explanation:

It was established on 1 July 1949 as a statutory body under the Chartered Accountants Act, 1949 enacted by the Parliament (acting as the provisional Parliament of India) to regulate the profession of Chartered Accountancy in India. ICAI is the second largest professional Accounting & Finance body in the world.

Which among the following constitutes the base of accounting?

commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Book-keeping

  2. Posting

  3. Analyzing

  4. None of above

Show answer
Correct Option: A
Explanation:

Book Keeping is the primary function of accounting. More often, the term book keeping and accountancy are used interchangeably but that is not correct. Book keeping and accountancy are two different terms. 


Book Keeping is generally mean recording of all business transactions. This task is performed by the junior staff of the organization. 
Accounting starts only when the book keeping is done. This task is performed by the senior accountants. Book keeping is the base of accounting. 

Book keeping is ________.

commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. science

  2. art

  3. both A & B

  4. literature

Show answer
Correct Option: C
Explanation:

Book keeping is the science and art of recording transactions in money or money's worth so accurately and systematically that the true state of a businessman's affairs can be carefully ascertained. 

What is done as per the basic concepts of accounts?

commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Book keeping

  2. Balancing

  3. Casting

  4. None of the above

Show answer
Correct Option: A
Explanation:

There are various accounting concept on which the whole accounting system is based. These are known as accounting concepts and conventions. Book keeping is done on the basis of these accounting concept. Main concepts are:

1) Separate Entity Concept
2) Going Concern Concept
3) Periodicity Concept
4) Cost Concept
5) Matching Concept
6) Revenue Recognition Concept
7) Money Measurement Concept
8) Dual Aspect Concept.