Objectives of Accounting Quiz
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Questions and Answers

Who are the primary users of accounting information?

  • Employees
  • Creditors, investors, owners (correct)
  • Competitors
  • Suppliers

What is the primary objective of accounting?

  • Providing useful information for decision-making (correct)
  • Measuring sales volume accurately
  • Ensuring systematic recording of transactions
  • Maximizing profits for the business

Why is accounting often referred to as the 'language of business'?

  • It helps in strategic decision-making
  • It involves complex mathematical calculations
  • It communicates financial information in a standardized manner (correct)
  • It ensures efficient production processes

What role does bookkeeping play in the accounting process?

<p>Ensuring systematic record-keeping of financial transactions (B)</p> Signup and view all the answers

Which of the following is NOT a measurement derived from accounting activities?

<p>Market share (A)</p> Signup and view all the answers

What is necessary to ensure the reliability and precision of accounting measurements?

<p>Systematic recording of financial transactions (A)</p> Signup and view all the answers

How do stakeholders use accounting measurements in business operations?

<p>As a basis for rational decision-making (A)</p> Signup and view all the answers

According to the cash account, what was the balance brought forward on 1/5/15?

<p>5,800 (A)</p> Signup and view all the answers

Which account was credited with 150 on 30/4/15?

<p>Interest Account (A)</p> Signup and view all the answers

What was the amount credited to the Machinery Account on 14/4/15?

<p>5,000 (C)</p> Signup and view all the answers

How much was credited to the Discount Account on 27/4/15?

<p>100 (B)</p> Signup and view all the answers

What was the opening balance in the M/s Kunal & Sons Account on 1/5/15?

<p>3,500 (C)</p> Signup and view all the answers

How much was the total credit in the Commission Account on 30/4/15?

<p>250 (C)</p> Signup and view all the answers

Which of the following transactions would be recorded in the Cash Account?

<p>Receiving cash from Arun (B)</p> Signup and view all the answers

What is the purpose of the Discount Account?

<p>To record the discounts given to customers (B)</p> Signup and view all the answers

If a company paid $2,500 to Suresh and allowed a discount of $250, how would this transaction be recorded in the Cash Account?

<p>Cash $2,250, Discount $250 (C)</p> Signup and view all the answers

How would the purchase of machinery for cash be recorded?

<p>Debit Machinery, Credit Cash (A)</p> Signup and view all the answers

If a company received $1,900 from Rajesh and allowed a $100 discount, how would this transaction be recorded in the Cash Account?

<p>Cash $1,800, Discount $100 (D)</p> Signup and view all the answers

Where would the interest earned on cash deposits be recorded?

<p>Interest Account (B)</p> Signup and view all the answers

Which account is used to record transactions related to cash receipts and payments?

<p>Cash Account (A)</p> Signup and view all the answers

If a business receives interest on a loan given to another entity, in which account should the interest income be recorded?

<p>Interest Account (D)</p> Signup and view all the answers

In which account are transactions related to the purchase and sale of machinery recorded?

<p>Machinery Account (B)</p> Signup and view all the answers

If a business receives a discount from a supplier for early payment, which account should be credited?

<p>Discount Account (D)</p> Signup and view all the answers

Which account is used to record interest expenses paid by a business on loans or other borrowings?

<p>Interest Account (C)</p> Signup and view all the answers

If a business sells machinery at a price higher than its book value, which account should be credited with the gain?

<p>Machinery Account (B)</p> Signup and view all the answers

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