BASICS CONCEPTS OF ACCOUNTING & COMMERCE
Quiz by Commerce Dept St.PiousX College
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- Q1What does the term 'ROI' Stand for in Accounting and Commerce?Revenue on IncomeReturn on InvestmentRate of InterestRisk of Investment30s
- Q2What is a 'Balance Sheet' in Accounting .A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.A report on employee salariesA summary of market trendsA document that tracks daily expenses30s
- Q3What is the difference between 'Gross Profit' and 'Net Profit'?There is no difference between gross profit and net profit.Gross profit is the revenue minus the cost of goods sold, while net profit is the revenue minus all expenses.Net profit is the revenue minus the cost of goods sold, while gross profit is the revenue minus expenses.Gross profit includes all expenses, while net profit only includes revenue.30s
- Q4
The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as
Intangible Asset
Tangible Asset
Current Asset
Fixed Asset
30s - Q5
If Goods are taken for own purposes by the Proprietor
it should be
Debit Drawings Account, Credit Purchases Account
Debit Purchases Account: Credit Drawings Account
Debit Sales Account: Credit Stock Account
Debit Drawings Account: Credit Stock Account
30s - Q6
If a trial balance totals do not agree, the difference must be entered in
The Profit and Loss Account
A Suspense Account
A Nominal Account
The Capital Account
30s - Q7What is the difference between 'Debit' and 'Credit' in Accounting?Debits increase liabilities, while credits increase assets and expenses.Debits decrease equity, while credits decrease revenues.Debits increase assets and expenses, while credits increase liabilities, revenues, and equity.Debits and credits have the same effect on financial accounts.30s
- Q8
Which of the following is not a business transaction?
Paid son’s fees from the business Rs. 2,000
Bought furniture of Rs. 10,000 for business
Paid son’s fees from her personal bank account Rs. 20,000
Paid for salaries of employees Rs. 5,000
30s - Q9What is the formula for calculating Gross Profit?Gross Profit = Revenue - Cost of Goods SoldGross Profit = Revenue + Cost of Goods SoldGross Profit = Revenue / Cost of Goods SoldGross Profit = Revenue * Cost of Goods Sold30s
- Q10
Which of the following is correct?
Closing Stock shown in Trial Balance is recorded in Balance Sheet
Income tax is a trade expense
Prepaid Expenses Account is Nominal Account
More than one of the above
30s - Q11What does the abbreviation 'GAAP' stand for in accounting?General Accounting Assessment ProceduresGenerally Accepted Accounting PrinciplesGlobal Accounting PracticesGovernment Accounting Policies30s
- Q12What is the difference between Cash Accounting and Accrual Accounting?Cash accounting only records expenses, while accrual accounting only records revenuesCash accounting records revenues when they are earned and expenses when they are incurred, while accrual accounting doesn't consider timingCash accounting records revenues and expenses when they are actually received or paid, while accrual accounting records revenues and expenses when they are earned or incurred, regardless of when the money is actually received or paid.Cash accounting and accrual accounting are the same in terms of recording transactions30s
- Q13What is the definition of a Liability in Accounting?An obligation or debt that a company owes to outside partiesThe physical assets owned by a companyThe amount of money invested by shareholders in a businessThe total revenue generated by a company30s
- Q14What does the term 'Accounts Receivable' refer to in Accounting?Money owed to a company by its customers for goods or services provided on creditMoney that a company owes to its suppliersThe amount of cash on hand in a company's bank accountThe total revenue generated by a company in a year30s
- Q15
The time gap between the payment for raw material purchases and collection of cash from sales is referred as the
Both A & B
None of the above
Ccash Cycle
Accounting Cycle
30s