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 the article “Accounting-Definition, Process, Objective, Origin, And Evolution”
So let’s get started
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 to keep accounting records and determine the financial results of the organization.
Question-04:What are the three functions of accounting?
Answer:The three functions of accounting are as follows:
- 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:What was the scope of accounting in the past?
Answer:In the past, the scope of accounting is limited only to business.
Question-07:What are the branches or types of accounting?
Answer:The major branches or types of accounting are as follows:
- 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:What subjects are related to accounting?
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 is called the father of accounting.
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:Luca de Pacio discusses the double-entry accounting process 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: The journey of modern accounting begin 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, and knots on the rope.
Question-29:Which way has the accounting improved considerably?
Answer: Accounting has improved considerablyby 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:The main function of bookkeeping is to record transactions in the book of accounts.
Question-34:What is the part of accounting that only records economic events?
Answer:Bookkeeping only records the 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
- 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 basicaccounting quizzes.
You may also read:
Short Questions and Answers:
- Transaction
- Account
- Double Entry System
- Accounting Cycle
- Journal
- Ledger
- Cash Book
- Bank Reconciliation Statement
- Trial Balance
- Financial Statements
- Receivables
- Accounting Principles
- Plant Assets and Depreciation