BBA 1st Semester Financial Accounting Exam 2022

Accounting is the way a business keeps track of its operations.

Objectives of accounting are to record, classify, summarize, and interpret business transactions. Limitations of accounting include subjectivity, historical basis, and potential for fraud. The significance of accounting lies in providing financial information for decision-making, evaluating financial performance, and ensuring legal compliance.

IFRS stands for International Financial Reporting Standards. Its advantages include greater transparency, comparability, and consistency in financial reporting.

<p>Challenges in adopting IFRS in India include differences in cultural context, legal framework, and accounting practices. There may also be significant costs associated with implementation and training.</p> Signup and view all the answers

<p>A note on &quot;Ethical Issues in Accounting&quot; aims to highlight the importance of ethical conduct in the accounting profession and address potential issues that may arise.</p> Signup and view all the answers

<p>Paying your employees their wages.</p> Signup and view all the answers

<p>Buying a new piece of machinery with cash.</p> Signup and view all the answers

<p>Salary that has been earned by employees but not yet paid.</p> Signup and view all the answers

<p>Selling an existing building for cash.</p> Signup and view all the answers

<p>Receiving a payment from Ramesh for a sale.</p> Signup and view all the answers

<p>The Heads of Accounts Involved include Salary, Machinery, Cash, Outstanding Salary, Building, and Ramesh.</p> Signup and view all the answers

<p>The Types of Accounts involved include Asset, Liability, Expense, and Income.</p> Signup and view all the answers

<p>Here's a breakdown of debits and credits for each transaction: (a) Salary Paid: Debit: Salary Expense, Credit: Cash (b) Machinery Purchased for Cash: Debit: Machinery, Credit: Cash (c) Outstanding Salary: Debit: Outstanding Salary Expense, Credit: Salary Payable (d) Building Sold: Debit: Cash, Credit: Building (e) Received Cash from Ramesh: Debit: Cash, Credit: Ramesh (or Sales Revenue if the cash is received from a sale)</p> Signup and view all the answers

<p>Salaries = Expense Rent = Expense Cash in Hand = Asset Debtors = Asset Trade Expenses = Expense Purchases = Expense Advances = Asset Bank Balance = Asset Creditors = Liability Sales = Income Capital = Equity Loans = Liability</p> Signup and view all the answers

<p>Preparing these financial statements helps in analyzing the company's profitability and financial position.</p> Signup and view all the answers

<p>A cost sheet is a document that provides a detailed breakdown of the costs incurred in manufacturing a product or providing a service.</p> Signup and view all the answers

<p>Financial books focus on recording and reporting financial transactions according to generally accepted accounting principles (GAAP). The Cost Account focuses on tracking the costs incurred in producing goods or services.</p> Signup and view all the answers

<p>A Reconciliation Statement is a document used to compare and explain the differences between two sets of financial information. In this case, it helps to reconcile the net profits reported in the financial books and the cost account.</p> Signup and view all the answers

<p>Activity-Based Costing (ABC) is a method of allocating costs to products or services based on the activities they consume.</p> Signup and view all the answers

<p>Factors to consider include identifying and analyzing activities, assigning costs to activities, and allocating activity costs to products or services.</p> Signup and view all the answers

<p>Traditional costing systems allocate costs based on volume measures, such as direct labor hours or machine hours. ABC allocates costs based on activities and their consumption by different products or services.</p> Signup and view all the answers