40 Short Questions and Answers-Transaction

Today we will learn “40 short questions and answers-Transaction.” It will definitely help you to do well in any kind of competitive exam. If you want to do well in any competitive exam, such as school or college exam or viva, job written exam or interview, etc., then practice these 40 short questions and their answers regularly.

For theory please read this article Accounting Transaction

So let’s get started
Question-1: What is a transaction?
Answer: Any event that brings to it a change in the pattern of assets or liabilities of the business, is called a transaction.
Question-2: What is an event?
Answer: Event refers to a process or part of a process that has a particular time and place of occurrence.
Question-3: How many types of events and what are they?
Answer: Two types. 1. Financial events 2. Non-financial events.
Question-4: What is the main basis of the transaction?
Answer: Change in financial position.
Question-5: How many types of changes in the financial condition?
Answer: Two types. i.Net or quantitative change and ii. Structural or qualitative change.
Question-6: What is the net or quantitative change of the transaction?
Answer: A quantitative change in the total value of the assets and liabilities of the organization is called a net or quantitative change of the transaction.
Question-7: What is the structural or qualitative change of the transaction?
Answer: If the transaction only causes a material change in one of the two aspects of the property and the liability, it is called a structural or qualitative change of the transaction.
Question-8: What is the basis of accounting?
Answer: Transactions.
Question-9: What is the lexical meaning of the transaction?
Answer: Exchange.
Question-10: Which two parties are involved in each transaction?
Answer: Beneficiaries and givers.
Question-11: What’s the business transaction?
Answer: Transactions that take place for business purposes are referred to as business transactions. E.g. purchase and sale of the product.
Question-12: What is the non-business transaction?
Answer: Transactions of organizations which are not happened for profit but for the welfare of the people are called non-business transactions. For example, donations to schools, colleges, hospitals, etc.
Question-13: What’s a personal transaction?
Answer: Transactions that take place in personal and family life are referred to as personal transactions. For example, the school salary of the boy, the wedding expenses of the girl, etc.
Question-14: What’s the internal transaction?
Answer: Transactions that take place within an organization are referred to as internal transactions. For example, depreciation, deletion, etc.
Question-15: What’s an external transaction?
Answer: Transactions with another person or organization are referred to as external transactions. For example, Paid electricity bills, paid to the vendor, etc.
Question-16: What is a cash transaction?
Answer: Cash transactions are transactions that result in a change in the cash of the organization. For example, cash received from the debtors.
Question-17: What’s the credit transaction?
Answer: Transactions that take place on credit, that is, transactions that do not result in a change in the organization’s cash, are called credit transactions. For example, goods are sold on credit to Peter.
Question-18: What’s a non-cash transaction?
Answer: All other transactions except cash and credit are referred to as non-cash transactions. For example, depreciation.
Question-19: What’s the visible transaction?
Answer: Transactions that can be accessed or perceived are referred to as visible transactions. For example, a product is bought at $100.
Question-20: What’s the invisible transaction?
Answer: Transactions that cannot be touched or viewed are referred to as invisible transactions. For example, Depreciation of Building.
Question-21: What is a capital transaction?
Answer: Transactions that have long-term results are called capital transactions. For example, the purchase of furniture.
Question-22: What is the revenue transaction?
Answer: Transactions that have short-term results are called revenue transactions. For example, House rent.
Question-23: What is the accounting equation?
Answer: The equation that expresses the relationship between the elements of the financial condition of an organization, such as property, liabilities, and ownership, is called an accounting equation.
Question-24: What is the basic accounting equation?
Answer: A=L+OE
Question-25: What is the expanded accounting equation?
Answer: A=L+(C+R-E-D)
Question-26: What also affects the result of the transaction?
Answer: Accounting Equation
Question-27: What is the documentary evidence of the transaction?
Answer: The written and valid evidence that accompanies the transaction is called the documentary evidence of the transaction.
Question-28: Which documents are used in business transactions?
Answer: Invoice, cash Memo, Debit Note, Credit Note, VAT Invoice, Debit Voucher, Credit Voucher, Journal Voucher, etc.
Question-29: What’s the invoice?
Answer: Invoice is the authentic document of purchase and sale
Question-30: What is a credit voucher?
Answer: A voucher that is used to sell goods and other income is called a credit voucher.
Question-31: What is a cash memo?
Answer: The receipt issued by the seller to the buyer as an authentic document in case of cash purchase and sale is called a cash memo.
Question-32: To who is the original copy of the Cash Memo provided?
Answer: To the buyer.
Question-33: How many copies of cash memos are made?
Answer: 3 copies
Question-34: What is a voucher?
Answer: A statement that is made to exchange cash is called a voucher.
Question-35: How many types of vouchers and who makes them?
Answer: 2 types, accountant.
Question-36: What is a journal voucher?
Answer: The voucher that is created for the non-cash transactions is called a journal voucher.
Question-37: What is a debit note?
Answer: The note that is prepared when the purchased product is returned is called a debit note.
Question-38: What is a credit note?
Answer: The note that is prepared when the sold product is returned is called a credit note.
Question-39: Who prepares debit notes?
Answer: Buyer
Question-40: What are the features of the transaction?
Answer: Measurable in monetary terms, Changes in the financial position, dual aspect, Self-sufficient, and independent.
I hope, you’ve understood “40 Short Questions and Answers-Transaction.”
You may also read:
Short Questions and Answers:
  1. Introduction to Accounting
  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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