Tag: meaning of accounting

Questions Related to meaning of accounting

______ is the summarizing phase of accounting system.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Book keeping

  2. Ledger posting

  3. Balancing

  4. Accounting

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Correct Option: D
Explanation:

Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analyzing and reporting these transactions to oversight agencies and tax collection entities. 

Accounting in modern age is regarded as ___________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. the art of recording, classifying and summarizing the business transactions in monetary units

  2. the languages of business

  3. the source of business information

  4. all of the above

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Correct Option: D
Explanation:

Accounting is an art of recording, classifying and summarizing the monetary business transactions. Accounting provides detailed information to the respective stake holders. Interested stake holders are creditors, lenders, customers, present and potential investors. Accounting is a language of business. Financial Statements provides the necessary business information to the management and other stake holders. 

Accounting is "the are of recording, classifying and summarizing in  a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character and interpreting the results thereof". This definition is given by ______________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. The Institute of Chartered Accountant of India (ICAI)

  2. The Institute of Chartered Accountant of England

  3. American Institute of Certified Public Accountants

  4. The Institute of Chartered Accountant of Pakistan

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Correct Option: C

In annuity method interest is calculated ______________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. on the value of the asset at the time of purchase

  2. on the value of the asset at the beginning of each year

  3. on the value of asset as expected at the end value of asset

  4. Both a & b

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Correct Option: B
Explanation:

Concept of Annuity Method of Depreciation:
The interest at this fixed rate on the opening balance of asset is debited to asset account each year and then the cost of asset together with interest thereon is written off equally over the life of the asset.

Accounting makes _____________________.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Decision making for the management easy as financial results can be compared

  2. The records being put is a systematic pattern so that any point of time they can be used

  3. The financial information being stored in a meaningful way for taxation purpose

  4. All of the above

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Correct Option: D

_________ is an art of recording, classifying, summarising transactions and events which are of financial character in terms of money and interpreting the result thereof.

elements of accounts ancient indian accounting meaning of accounting introduction to book-keeping and accounting book-keeping - ledger

  1. Accountancy

  2. Accounting

  3. Book-Keeping

  4. None of these

Show answer
Correct Option: B
Explanation:

Accounting is defined by the American Institute of Certified Public Accountants(AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof."