Today we will learn “40 short questions and answers-Introduction to accounting.”It will definitely help you to do well in any kind of exam.
If you want to do well in a competitive exam, such as a school or college exam or viva, job written exam or viva, etc., then practice these 40 questions and their answers regularly.
For theory please read this article “Accounting-Definition, Process, Objective, Origin, And Evolution”
So let’s get started
Short Questions and Answers-Introduction to Accounting
Question-01: What is accounting?
Answer: Accounting is an information system that identifies, records, and reports to interested users the economic activities of an organization.
Question-02: What is called Accounting?
Answer: Accounting is called the language of business.
Question-03: What is the main objective of accounting?
Answer: The main objective of accounting is keeping accounting records and determine the financial results of the organization.
Question-04: What are the names of the three functions of accounting?
Answer: The three functions of accounting are
- Classification, and
Question-05: What does accounting encourage people to do?
Answer: Accounting encourages people to exercise regularity, honesty, and accountability.
Question-06: In the past, what was the scope of accounting?
Answer: In the past, the scope of accounting is limited only to business.
Question-07: What are the branches or types of accounting?
Answer: Major branches are:
- Financial Accounting,
- Cost Accounting,
- Management Accounting,
- Tax Accounting,
- Forensic Accounting, etc.
Question-08: What does Accounting create?
Answer: Accounting creates values and accountability.
Question-09: Accounting has a relationship to which subjects?
Answer: Accounting is related to
- Political Science
- Environmental Science, etc.
Question-10: What kind of science is accounting?
Answer: Accounting is a Social science.
Question-11: Is Accounting art or science?
Answer: Accounting is both art and science.
Question-12: When does the journey of accounting begin?
Answer: The journey of accounting began when people lived in caves.
Question-13: Who is the father of accounting?
Answer: Luca de Pacioli.
Question-14: Who was Luca de Pacioli?
Answer: Luca de Pacioli was an Italian priest, philosopher, and mathematician.
Question-15: What is the name of the famous book written by Luca de Pacioli?
Answer: Summa de Arithmetica, Geometria, Proportioniet Proportionalite.
Question-16: Which part of the book by Luca de Pacioli discusses the double-entry accounting process?
Answer: In the third part of the book.
Question-17: Where is the origin of modern accounting?
Answer: In 1494, Venice, Italy.
Question-18: When does the journey of modern accounting begin?
Answer: In the fifteenth century.
Question-19: At what time is the noticeable change in the accounting system?
Answer: In the modern era.
Question-20: What makes an organization trustworthy to a third party and plays the most important role in creating accountability?
Question-21: On what basis is the transaction validated and the existence of the property verified?
Answer: With the help of secured accounting books, financial statements, and credentials.
Question-22: What are the main advantages of accounting?
Answer: The main advantages of accounting are as follows:
- Know the financial status,
- Identify the improvement area,
- Prevent fraud,
- Take proper decisions, etc.
Question-23: What are the requirements of accounting for internal users?
Answer: Determine the profit or loss.
Question-24: What’s needed to make a business successful?
Answer: Keeping track of business transactions properly.
Question-25: What is the basis for different types of decision-making in the management of the organization?
Answer: Accounting Information.
Question-26: When does the transaction start in cash and on credit?
Answer: The circulation of currency.
Question-27: What is the name of the most recent addition to accounting improvement?
Answer: Computed or Mechanical Accounting.
Question-28: How did people of primitive age keep an account of themselves?
Answer: Cut the stains on the walls of the cave, knots on the rope.
Question-29: Which way has the accounting improved considerably?
Answer: by improving trade and commerce and by advancing science and technology.
Question-30: How’s the history of accounting?
Answer: The history of accounting is as old as the history of human civilization.
Question-31: The basis for the collection of income tax, value-added tax, and excise duty is—
Answer: Maintain accurate accounting
Question-32: What is bookkeeping?
Answer: Bookkeeping is a part of accounting that only involves the recording of economic events.
Question-33: What is the main function of bookkeeping?
Answer: Record transactions in the book of accounts.
Question-34: What is the part of accounting that only records economic events?
Question-35: What is the purpose of bookkeeping in an organization?
Answer: Determine the financial status of an organization.
Question-36: What is Accounting Information?
Answer: The consolidated statement of all financial information of an organization is called Accounting Information.
Question-37: How many users of accounting information are there?
Answer: There are two types of accounting information users. One is an internal user and the other is an external user.
Questions-38: Who are the internal users of accounting information?
Answer: The internal users of accounting information are
- Management authorities
- Internal auditors, and
- Accounting departments.
Questions-39: Who are the external users of accounting information?
Answer: The external users of accounting information are
- Business Associations
- Creditors, and
- External auditors.
Question-40: What are the sources of accounting information?
Answer: The sources of accounting information are as follows :
- Comprehensive Income Statement,
- Balance Sheet,
- Owner’s Equity Statement,
- Cash Flow Statement, and
- Notes & Explanation.
I hope, you’ve understood that. Now, you can test your accounting skills with our basic accounting quizzes.
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