40 Short Questions and Answers-Introduction to Accounting [With PDF]

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

  • Identification,
  • Classification, and
  • Communication.  

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

  • Economics
  • Mathematics
  • Computers
  • Statistics
  • Law
  • Political Science
  • Engineering
  • 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?

Answer: Accounting.  

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?

Answer: Bookkeeping.  

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

  • Owners
  • 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

  • Government
  • Lenders
  • Investors
  • Consumers
  • Researchers
  • Business Associations
  • People
  • 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.

You may also read:

Short Questions and Answers:

  1. Transaction
  2. Account
  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

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