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Basics of Business Accounting Practice Test Questions
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Business accounting is the process of gathering and analyzing financial information on business activity, recording transactions, and producing financial statements.

Why Business accounting is important: By keeping tabs on all of your assets, liabilities, inventory, and other records can help you secure investors, protect your assets from theft, and find ways to grow (and often, save) your company.

Primary duties of small business accounting include bookkeeping, preparing and filing tax returns, and drafting financial reports.

Basics of Business Accounting Practice Test Questions
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25 Questions

1. The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as
2. Bookkeeping is a/an……………………of correctly recording of business transition.
3. Which of the following is a Real A/c?
4. Accounting principles are divided into two types. These are ..-
5. Cost concept basically recognises ____.
6. Profit and loss is calculated at the stage of
7. Double entry system is used in which type of accounting?
8. Cash a/c is a ______.
9. Historical cost concept requires the valuation of an asset at
10. A trader has made a sale of Rs.75,500 out of which cash sales amounted to Rs.25,500. He showed trade receivables on 31-3-2014 at Rs.25,500. Which concept is followed by him?
11. Long term assets having no physical existence but, possessing a value are called
12. What comes in is to be debited, what goes out is to be credited.
13. Small items like, pencils, pens, files, etc. are written off within a year according to _____ concept.
14. For every debit there will be an equal credit according to
15. Which of the following is not a nominal Account?
16. An accounting that deals with the accounting and reporting of information to management regarding the detail information is
17. Identify which is wrong rule
18. The accounts that records expenses, gains and losses are
19. The purpose of financial accounts is reporting to
20. The following is not a type of liability
21. Which accounting concept satisfy the valuation criteria?
22. The debts which are to be repaid within a short period (a year or less) are referred to as,
23. The comparison of financial statement of one year with that of another is possible only when ............- ..-concept is followed
24. Any written evidence in support of a business transaction is called
25. Accounting furnishes data on

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