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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 main object of cost accounting is:
2. The debts which are to be repaid within a short period (a year or less) are referred to as,
3. The nature of financial accounting is:
4. Debit the receiver & credit the giver is _____ account.
5. Small items like, pencils, pens, files, etc. are written off within a year according to _____ concept.
6. The transferring of debit and credit items from journal to the respective accounts in the ledger is called as
7. Which of the following is not an internal user of management information?
8. All those to whom business owes money are:
9. The basic sequence in the accounting process can best be described as:
10. Business enterprise is separate from its owner according to _____ concept.
11. A trader calculated his profit as Rs.150000 on 31/03/2014. It is an
12. Real accounts records
13. Double entry system is used in which type of accounting?
14. 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?
15. Which accounting concept satisfy the valuation criteria?
16. The proprietor of the business is treated as creditor for the capital introduced by him due to_____ concept.
17. The following is not a type of liability
18. The comparison of financial statement of one year with that of another is possible only when ............- ..-concept is followed
19. A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But the trader recorded in his books for Rs. 750000. Which of the following concept is violated.
20. Profit and loss is calculated at the stage of
21. Identify which is wrong rule
22. The purpose of financial accounts is reporting to
23. The rule debit all expenses and losses and credit all income and gains relates to
24. Accounting furnishes data on
25. The accounts that records expenses, gains and losses are

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