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CBSE Questions for Class 9 Elements Of Book Keeping And Accountancy Introduction To Book Keeping And Accounting Quiz 3 - MCQExams.com
CBSE
Class 9 Elements Of Book Keeping And Accountancy
Introduction To Book Keeping And Accounting
Quiz 3
Which of the following is/are the branch of accounting?
(P) Financial Accounting
(Q) Cost Accounting
(R) Management Accounting
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(P)
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(Q)
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(R)
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All of the above
Explanation
There are various branches of accounting:
Financial Accounting: This branch deal with the recording of all business transactions , classifying, summarizing and interpreting the financial data to provide the logical information to the management in the form of financial statement.
Cost Accounting: It seeks to ascertain the cost of each product or job produced or undertaken by the business.
Management Accounting: It has the objective of collecting systematically and regularly all such information as will help the management in discharging functions in managerial decision making.
Which of the following is/are not the branch of accounting?
Report Question
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Cost Accounting
0%
Financial Accounting
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Human Resources Accounting
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All of the above
Explanation
There are various branches of accounting:
Financial Accounting: This branch deal with the recording of all business transactions , classifying, summarizing and interpreting the financial data to provide the logical information to the management in the form of financial statement.
Cost Accounting: It seeks to ascertain the cost of each product or job produced or undertaken by the business.
Management Accounting: It has the objective of collecting systematically and regularly all such information as will help the management in discharging functions in managerial decision making.
Human Resource Accounting is not a branch of accounting.
Which of the following is the branch of accounting?
(I) Human Resources Accounting
(II) Social Accounting
(III) Security Accounting
The correct answer is-
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(I) & (II)
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(II) & (III)
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(I) & (III)
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None of the above
Explanation
Accounting has following branches:
1) Financial Accounting
2) Management Accounting
3) Cost Accounting
Human Resource Accounting/Social Accounting/Security Accounting are not the branch of accounting.
The primary qualities that makes accounting information useful for decision-making are ________________.
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Comparability and consistency
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Materiality and timeliness
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Relevance and reliabilty
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Reliability and comparability
Explanation
Option C is correct.
Relevance is the concept that the information generated by an accounting system should impact the decision making of someone perusing the information and reliability concept says only those transactions should be recorded which can be verified with objective evidence.
Therefore, these two are the primary qualities which makes accounting information useful for decision making.
Which of the following groups/ parties are interested in the accounting information of the business?
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Proprietors or owners
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Creditors
0%
Tax authorities
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All of these
Explanation
There are various stakeholders in the business who want to know about the business progress and financial position of the business.
Owner of the business is interested to know the profitability and business growth.
Creditors are more interested to know the financial position of the concern. Whether the firm will be able to repay their debt on time.
Tax Authorities are interested to know that the concern is maintaining the books of account properly and due taxes are paid on time.
When information about two different enterprises has been prepared and presented in a similar manner, the information exhibits the characteristics of _______________.
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Reliability
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Consistency
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Verifiability
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Comparability
Explanation
The chosen option is correct. Comparability concept says that financial statements of two different enterprises can be compared if both are presented in a similar manner using same accounting policies and conventions.This helps in analyzing the performance and position of an enterprise in the industry.
Which of the following are internal users of accounting information?
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Board of directors
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Partners
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Managers
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All of the above
Explanation
There are various agencies or stake holders interested to know about the accounting information. These stakeholders may be internal and external.
Accounts are prepared by the organization by following the compliance of various acts. Various agencies are interested to know about the accounts to ensure that organization is following the various laws applicable.
Board of directors, Partners and Mangers are considered as internal users.
Which of the following is/are the advantages of accounting?
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Decision making relating to financial aspect
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Evidence in legal matters relating to accounting
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Provides information to interested parties
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All of the above
Explanation
Accounting plays an important and useful role for the businessman. Following are the points which shows the advantages of accounting:
1) It helps in decision making relating to financial aspect
2) It is helpful in comparison
3) It provides information regarding costs
4) It provides information to interested parties
5) It provides the evidence in the court of law
6) It provides the value of the business.
Which of the following is/are external users of accounting information?
Report Question
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Shareholders/investors
0%
Creditors
0%
Government agencies
0%
All of the above
Explanation
There are various agencies or stake holders interested to know about the accounting information. These stakeholders may be internal and external.
Accounts are prepared by the organization by following the compliance of various acts.
Shareholders, creditors and government agencies are considered as the external agencies which are interested to know about the accounting information.
Various agencies are interested to know about the accounts to ensure that organization is following the various laws applicable.
These regulatory agencies may includes Income Tax Authorities, Company Law Board, Registrar of Companies, SEBI, RBI etc.
What are the important objectives of accounting?
I. To maintain records of a business
II. Calculation of profit or loss
III. Depiction of financial position
IV. To make information available to various groups and users.
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I and II
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I and III
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I, II and III
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I, II, III and IV
Explanation
Definition of accounting is:
" Accounting is an art of recording, classifying and summarizing in terms of money transactions and events of a financial character and interpreting the results thereof"
It specifies that, accounting starts when all the business transactions are recorded. Accounting provides detailed information on financial position of the business to all the interested stake holders. The interested stake holders are creditors, lenders, customers, present and potential investors.
Regulatory Agencies interested as users of accounting information includes __________.
Report Question
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Various Government departments
0%
Agencies such as Company Law Board (CLB)
0%
Registrar of Companies (ROC)
0%
All of the above
Explanation
There are various agencies or stake holders interested to know about the accounting information. These stakeholders may be internal and external.
Accounts are prepared by the organization by following the compliance of various acts. Various agencies are interested to know about the accounts to ensure that organization is following the various laws applicable.
These regulatory agencies may includes Income Tax Authorities, Company Law Board, Registrar of Companies, SEBI, RBI etc.
Which of the following is/are characteristics of accounting information?
Report Question
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Understandability
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Timeliness
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Completeness
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All of the above
Explanation
There are mainly 4 characteristics of the accounting information
1.
Understandability:
Information should be simple so,
that users interpret it in the same sense.
2. Reliability:
It means that information should be
Verifiable, neutral and faithful.
3. Relevance:
It includes
timelines, Feedback value and dedicative.
4. Comparability:
It includes that information should be of
common period and use common unit of measurement and format of reporting.
Select the odd on in relation to users of accounting information.
Report Question
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Officers
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Managers
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Debtors
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Board of directors
Explanation
Officers, Mangers and Board of directors are the team of employees and board.
Debtors are those to whom company has sold goods on credit. These are part of current assets.
Identify the external users of financial information or financial statements ____________________.
Report Question
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Management of the business
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CFO of the business
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Employees of the business
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Investors of the business
Explanation
Investors of the business are considered as the
external users of financial information or financial statements. As they are not directly involved in working of organization like CFO, Employee or management.
Which of the following is characteristic of accounting information?
P. Relevance
Q. Reliability
R. Comparability
Select the correct answer from the options given below ______________.
Report Question
0%
P
0%
Q
0%
R
0%
All of the above
Explanation
There are mainly 4 characteristics of the accounting information
1. Understandability:
2. Relevance
3.
Reliability
4. Comparability
Accounting information is being used by __________.
Report Question
0%
Customers
0%
Researchers
0%
Both A & B
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None of the above
Explanation
There are different people or the stake holders interested to know about the financial position of the organization. These are customers, creditors, lenders, existing and prospective investors , tax authorities.
Customers are more interested to know about the business performance and the future plans of the organization.
Researchers are interested to know the accounting information to do further research and cpmparison with other similar industries.
Which of the following is characteristic of accounting information?
Report Question
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Verifiability
0%
Neutrality
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Completeness
0%
All of the above
Explanation
There are mainly 4 characteristics of the accounting information
1. Understandability:
2. Relevance
3.
Reliability
4. Comparability
Here,
Reliability
includes information to be verifiable, neutral and complete.
Thus, all the options are correct.
Accounting involves _________.
Report Question
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decision making for the management easy as financial results can be compared.
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the records being put is a systematic pattern so that any point of time they can be used.
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the financial information being stored in a meaningful way for taxation purpose
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all of the above
Explanation
Accounting plays an important and useful role for the business owner. Main advantages are :
To record all the business transactions in a systematic way so that information can be used as and when required.
Financial statements are prepared on the basis of information recorded in the books of account, so that management can take a decision by comparing the results.
Accounting plays a vital role in giving the information to the taxation authorities to know whether business is following all the rules and laws and paying the tax in timely manner.
Which of the following characteristics of accounting information primarily allows user of financial statements to generate predictions about an organization?
Report Question
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Reliability
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Timeliness
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Neutrality
0%
Relevance
Explanation
Information is relevant if it is
available in time
and helps in
prediction
.
The
management
needs accounting information for making a
useful decision
like where to invest, how was the performance of the business the year, where management needs to improve but if management does not get this information
on time
then they cannot make a certain prediction which is important for the success of the company.
Regulatory Agencies, interested as users of accounting information's includes _____________________.
Report Question
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Various Government departments
0%
Agencies such as Company Law Board (CLB)
0%
Registrar of Companies (ROC)
0%
All of the above
Explanation
Regulatory Agencies, interested as users of accounting information's includes
1.
Various Government departments
2.
Agencies such as Company Law Board (CLB)
3.
Registrar of Companies (ROC)
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Practice Class 9 Elements Of Book Keeping And Accountancy Quiz Questions and Answers
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