Accountancy - Introduction to Accounting

Class XI

Accountancy

Introduction to Accounting

15 questions

HARD

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1. What is the primary purpose of accounting?

To prepare financial statements · To record transactions · To provide information for decision making · To comply with legal requirements

2. Which of the following is NOT a function of accounting?

Recording · Classifying · Auditing · Summarizing

3. What is meant by 'accounting'?

A process of recording financial transactions · A method of calculating profits · A technique for managing cash flow · A system for tax preparation

4. Which of the following statements is true regarding accounting?

It is only applicable to businesses · It is a science and an art · It is only concerned with profit maximization · It is not necessary for small enterprises

5. What does the term 'double-entry system' refer to?

Recording each transaction twice · Recording transactions in two different books · Every transaction has dual effects · A method of summarizing accounts