Today we’re going to learn “40 short questions and answers-Account“. It will definitely help you do well in any form of competitive exams, such as school or college viva tests, career written exams or interviews, etc.
If you want to do well in accounting, practice these 40 short questions and their answers on a regular basis.
For theory please read this article Concept of accounts
Short Questions and Answers-Account
Question-1: What’s an account?
Answer: An account is a statement or list of similar transactions.
Question-2: What’s a personal account?
Answer: The account which is related to individuals or organizations is called personal account. For Example, debtor account, Peter account, TB Corporation account, etc.
Question-3: What’s an impersonal account?
Answer: Accounts outside of individuals or organizations are called impersonal accounts. For example, Building account, Sales Account, Salary Account, service account, etc.
Question-4: What’s a nominal account?
Answer: Account that relates to revenue and expenditure is referred to as a nominal account. For example, Sales account, Purchase account, Salary account, Interest account, Commission account, etc.
Question-5: What is a capital or ownership account?
Answer: The amount of the owner’s claim on the total assets of the organization is called the capital or ownership account.
Question-6: What is Revenue account?
Answer: The account generated by classifying various forms of income is called the revenue account. For example, sales account, service revenue account, interest received account, etc.
Question-7: What’s an expense account?
Answer: The account that is created by classifying different types of expenses is called expense account. For example, Purchase account, salary account, commission account, etc.
Question-8: What’s a withdrawal account?
Answer: The Account that is prepared to record the withdrawal of cash and goods for the personal needs of the owner is called the withdrawal account.
Question-9:What’s the balance of the account?
Answer: The balance between the amount of the debit and the credit side of the account at the end of a certain period of time is called the balance of the account.
Question-10: What is a debit balance?
Answer: If the sum of the debit side of an account is greater than the sum of the credit side, it is called debit balance.
Question-11: What is a credit balance?
Answer: If the sum of the credit side of an account is greater than the sum of the debit side, it is called credit balance.
Question-12: What’s the Debtor?
Answer: An account that receives value or benefit is referred to as a debtor or Dr.
Question-13: What’s the creditor?
Answer: An account that provides value or benefits is referred to as a creditor or Cr.
Question-14: What is the importance of recording Accounts?
Answer: Permanent record, determining profit &loss and financial position, documentary evidence, prevent fraud, etc.
Question-15:What’s the asset account?
Answer: Accounts that are kept separately for the various types of assets of the organization are called asset accounts.
Question-16: What is a liability account?
Answer: Accounts that are kept separately for different types of liabilities of the organization are called liability accounts.
Question-17: Which accounts usually show the debit balance?
Answer: Expenses and Assets accounts.
Question-18: Which accounts usually show the credit balance?
Answer: Revenues, Liabilities and Capital accounts.
Question-19: Give me a couple of examples of tangible fixed assets.
Answer: Land, Building, Machinery, Office Equipment, Leasehold Property, etc.
Question-20: Give me a couple of examples of intangible fixed assets.
Answer: Trademark, Goodwill, Copyright, Patent, Trade license, etc.
Question-21:What are the examples of deferred expenses?
Answer: Share Discount, Preliminary Expenses, Research and Development Expenses, etc.
Question-22: The commonly used account format is…
Answer: “T “format.
Question-23: What is the modern format of accounts?
Answer: The modern format of the accounts is a “continuous balance format.”
Question-24: which account does not have a real existence?
Answer: Nominal accounts.
Question-25: What is the main book of the account?
Answer: Ledger
Question-26: Debit Voucher includes..
Answer: Expense Account.
Question-27: How many columns are there on each side of the format of the account?
Answer: Four.
Question-28: How many columns of account are there next to debit and credit?
Answer: There are 8 columns in account
Question-29: What is the name of the left side of the account?
Answer: Debit.
Question-30: What is the name of the right side of the account?
Answer: Credit.
Question-31: Which category of a product purchase, sales account?
Answer: Income-expenditure account or nominal account.
Question-32: What are the components of the format of the modern account?
Answer: Date, Title, Debit, Credit, and Balance.
Question-33: What kind of account is a deferred advertisement?
Answer: Asset account.
Question-34: Why is the debtor’s account being called an asset account?
Answer: Since a debtor is an artificial person.
Question-35: What kind of account is the value-added tax account?
Answer: Nominal account.
Question-36: What’s the other name of the asset account?
Answer: Real account.
Question-37: What do asset and nominal accounts mean together?
Answer: Impersonal account.
Question-38: What kind of account is the “general reserve”?
Answer: Owner’s Equity Account.
Question-39: How many types of traditional methods of accounts are there?
Answer: Two types.
Question-40: What are the components of the accounting equation?
Answer: Assets, liability, and Owner’s Equity.
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