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CBSE Questions for Class 9 Elements Of Book Keeping And Accountancy Introduction To Book Keeping And Accounting Quiz 4 - MCQExams.com
CBSE
Class 9 Elements Of Book Keeping And Accountancy
Introduction To Book Keeping And Accounting
Quiz 4
Internal users of accounting information include _______________.
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0%
Short-Term Creditors
0%
Customers
0%
Long-term Lenders
0%
CEO
Explanation
The users of accounting are mainly
classified into two
categories
1. Internal Users:
Internal users are
inside
the business of the entity.
Example: managers, owners, directors, CEO, CFO etc.
2. External Users:
These are outside the affairs of the entity.
Example: Creditors. Government, Shareholders etc
.
The branch of accounts that deals with the calculation of unit cost of services is called.
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Cost Accounting
0%
Management accounting
0%
Financial Accounting
0%
All of the above
Explanation
The
branch
of accounts that deals with the calculation of the unit cost of services are called
C
ost Accounting
.
Financial Accounting
deals with
recording, summarizing and reporting a company's business transactions through
financial
statements.
Management accounting
is the process of preparing reports about business operations that help
managers
make short-term and long-term decisions.
Accounting information is being used by ___________.
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0%
Customer
0%
Researchers
0%
Both a & b
0%
None of the above
Explanation
Well, Accounting information is used by customers for knowing about the continuity of the business and researchers for knowing about doing research on the business
Therefore, accounting information is used by Customers and Researcherrs
Which of the following is/are the branch of accounting?
(P) Financial Accounting
(Q) Cost Accounting
(R) Management Accounting
Select the correct answer:
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0%
(P)
0%
(Q)
0%
(R)
0%
All of the above
Explanation
There are three branches of accounting. They are:
1. Financial Accounting:
Financial Accounting
deals with
recording, summarizing and reporting a company's business transactions through
financial
statements.
2. Cost Accounting:
The
branch
of accounts that deals with the calculation of the unit cost of services are called
C
ost Accounting
.
3. Management Accounting
:
Management accounting
is the process of preparing reports about business operations that help
managers
make short-term and long-term decisions.
Users of accounting information include ______________.
Report Question
0%
Tax authorities
0%
Investors
0%
Creditors
0%
All of the above
Explanation
There are various stakeholders in the business who are interested to know about the accounting information for various reasons. User's or stake holders of the accounting information are creditors, Tax authorities, existing and prospective investors.
Creditors are interested to know about the safety of their money due from the company.
Tax Authorities are more interested to know that the company is maintaining the books of account as per the prevailing laws. Also want to ensure that due taxes are deposited by the company.
Investors both existing and prospective are more interested to know about the overall business.
Which of the following is not characteristic of accounting information?
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Understandability
0%
Relevance
0%
Future transactions
0%
Completeness
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 the common unit of measurement and format of reporting.
Which of the following is/are external users of accounting information's?
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Shareholders/ Investors
0%
Creditors
0%
Government agencies
0%
All of the above
Explanation
External Users
are those which are
outside
the
affairs
of the business.
Example:
Shareholders, creditors, government
etc.
Which of the following is/are characteristics of accounting information?
Report Question
0%
Understandability
0%
Timeliness
0%
Completeness
0%
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.
The basic objective of accounting is ________________.
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To maintain systematic records of financial transactions
0%
To ascertain financial performance
0%
To ascertain financial position
0%
All of Above
Explanation
Basic objective of accounting is -
1. To record financial transactions and events.
2. To determine profit or loss.
3. To determine financial position.
4. Communicating accounting information to users.
Which of the following is not a sub-field/Branch of Accounting?
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Cost Accounting.
0%
Management Accounting.
0%
Social Responsibility Accounting.
0%
Automated Accounting.
Explanation
The process of recording financial transactions in a systematic manner and classifying them into ledgers is termed as book keeping. It is a part of accounting. It is the basis for accounting. Whereas, information relating to the cost have specialized branch named as cost accounting and the information relating to the funds and its cost and profit have a branch called management accounting. A new dimension to accounting is the social responsibility accounting which looks after the entity's responsibility towards the society. Automated accounting is no branch or field to accounting.
Which of the following is the example of external users of accounting information ______________.
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Government
0%
Owners
0%
Management
0%
Employee
Explanation
Government is an external user of the accounting information as it is not part of the business.
There are two types of users of the financial statements
1. Internal Users: The examples of Internal users are owners, management and employee etc.
2. External Users: The example of External users are the government.
External users of accounting information include ______________.
Report Question
0%
Owner
0%
Customer
0%
Management
0%
None of these
Explanation
The users of accounting are mainly
classified into two
categories
1. Internal Users:
Internal users are
inside
the business of the entity.
Example: managers, owners, directors, CEO, CFO etc.
2. External Users:
These are outside the affairs of the entity.
Example: Creditors. Government, Shareholders etc
.
Users of accounting information include _____________.
Report Question
0%
Creditors
0%
Lenders
0%
Customers
0%
All of the above
Explanation
Accounting information is used by all the options given in the question, since they use information to make economic decisions and they are stakeholders of the business who deserve to know it all as well.
A specialised branch of accounting concerned with the processes and techniques of ascertaining costs of products and services is _______.
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0%
Financial accounting
0%
Budgetary accounting
0%
Cost accounting
0%
Tax accounting
Explanation
Cost accounting is a specialized branch of accounting concerned with the processes and techniques of ascertaining the costs of products and services.
It also pinpoints any wastages, leakages, and defects during manufacturing and marketing processes. There are mainly three branches of accounting and cost accounting is one of them.
Hence, option (C) is the correct answer.
Financial accounting information is characterized by all of the following except ___________.
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It is historical in nature
0%
It is factual, so it does not require judgement to prepare
0%
It results from appropriate measures
0%
It is enhanced by managements explanation
Explanation
'Professional judgement' is required to prepare accounting information since it is based on various accounting assumptions, policies, principles and standards. Therefore, financial accounting information involves professional judgement which cannot be ignored and hence, the statement that the judgement is not required is not correct.
Management accounting involves _______________.
Report Question
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Preparation of financial statements
0%
Analysis and interpretation of data
0%
Recording of transactions
0%
Preparation of cost statements
Explanation
Management Accounting is one of the branch of accountancy which helps management to make useful decisions.
Therefore, Analysis and interpretation of data is done in the management Accounting.
This helps management to know about the profitability and solvency of the business.
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0%
Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
0%
Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion
0%
Assertion is correct but Reason is incorrect
0%
Assertion is incorrect but Reason is correct
Explanation
Management accounting
is the process of preparing reports about business operations that help
managers
make short-term and long-term decisions.
There are three branches of accounting
1. Financial Accounting
2. Cost Accounting
3. Financial Accounting.
Therefore, Management accounting is the branch of accounting
The assertion is correct but the
Reason
is incorrect as cost accounting is the branch of accounting.
The Branch of Accounting which is concerned with the processing and presenting data for decision making is known as-
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0%
Common Dollar Accounting
0%
Social Accounting
0%
Cost Accounting
0%
Management Accounting
Explanation
The Branch of Accounting which is concerned with the processing and presenting data for decision making is known as
Management Accounting.
Management accounting
is the process of preparing reports about business operations that help
managers
make short-term and long-term decisions.
There are three branches of accounting and management accounting is one of them.
The main purpose of ___________ accounting is to ascertain profit or loss during a specific period and to show financial position of the business.
Report Question
0%
Financial
0%
Cost
0%
Management
0%
Human resource
Explanation
Profit & loss account and balance sheet are prepared on the basis of information available through financial accounting. Profit and loss account shows the profit or loss during a specific period and balance sheet provides the financial position of the firm on a particular date.
Purpose of accounting is to provide financial information to _________.
Report Question
0%
Shareholders
0%
Tax authorities
0%
Investors
0%
All of these
Explanation
There are various stakeholders who are interested in the financial position of the company. Shareholders and investors are the people who have provided the capital in the organization, hence want to know the financial position of the organization and more interested to know about the utilization of their money.
Tax Authorities are more interested to know about the overall financial position of the business to check and ensure that the company is paying the tax obligations on timely basis.
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Practice Class 9 Elements Of Book Keeping And Accountancy Quiz Questions and Answers
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