40 Short Questions and Answers-Account [With PDF]

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 a 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: An 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 a 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 an 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 difference between the amount column 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: The accounts usually show the debit balance is as follows:

• Expense accounts and
• Assets accounts.  

Question-18: Which accounts usually show the credit balance?

Answer: The accounts usually show the credit balance are as follows:

• Revenue accounts
• Liability accounts, and
• Capital accounts.  

Question-19: What are the examples of tangible fixed assets?

Answer: The examples of tangible fixed assets are as follows:

• Land
• Building
• Machinery
• Office Equipment
• Leasehold Property, etc.  

Question-20: What are the examples of intangible fixed assets.

Answer: The examples of intangible fixed assets are as follows:

• Trademark
• Goodwill
• Copyright
• Patent
• Trade license, etc.  

Question-21:What are the examples of deferred expenses?

Answer: The examples of deferred expenses are as follows:

• Share Discount
• Preliminary Expenses
• Research and Development Expenses, etc.

Question-22: What is the commonly used account format?

Answer: The commonly used account format is the “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 does not have a real existence.  

Question-25: What is the main book of the account?

Answer: Ledger is the main book of the account.

Question-26: What does Debit Voucher Include?

Answer: Debit voucher includes expense Account.  

Question-27: How many columns are there on each side of the format of the account?

Answer: There are four columns on each side of the format of the account. 

Question-28: How many columns of account are there next to debit and credit?

Answer: There are eight (8) columns in the account.

Question-29: What is the name of the left side of the account?

Answer: The name of the left side of the account is “Debit.” 

Question-30: What is the name of the right side of the account?

Answer: The name of the right side of the account is “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: The components of the format of the modern accounts are as follows:

• Date
• Title
• Debit
• Credit, and
• Balance 

Question-33: What kind of account is a deferred advertisement?

Answer: Deferred advertisement is an asset account.  

Question-34:  Why is the debtor’s account is called an asset account?

Answer: Since a debtor is an artificial person, so the debtor’s account is called an asset account.

Question-35:  What kind of account is the value-added tax account?

Answer: The value-added tax account is a nominal account.  

Question-36: What’s the other name of the asset account?

Answer: The other name of the asset account is a 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: General reserve is an owner’s equity account.  

Question-39: How many types of traditional methods of accounts are there?

Answer: There are two types of traditional methods of accounts.

Question-40: What are the components of the accounting equation?

Answer: The components of the accounting equation are as follows:

• Assets
• Liability and
• Owner’s Equity.  

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You may also read:

Short Questions and Answers:

1. Introduction to Accounting
2. Transaction
3. Double Entry System
4. Accounting Cycle
5. Journal
6. Ledger
7. Cash Book
8. Bank Reconciliation Statement
9. Trial Balance
10. Financial Statements
11. Receivables
12. Accounting Principles
13. Plant Assets and Depreciation