Financial Accountingunit1 Quiz

Financial accounting primarily deals with:

• Internal decision-making

• Recording financial transactions

• HR policies

• Marketing strategies

Which of the following is an objective of financial accounting?

• To improve employee morale

• To calculate tax refunds

• To ascertain profit or loss

• To check marketing budget

Which accounting concept assumes that a business will continue indefinitely?

• Money Measurement

• Going Concern

• Consistency

• Matching

The principle of matching expenses with revenues is called:

• Dual Aspect

• Matching Concept

• Realisation Concept

• Prudence

The rule of debit and credit for a real account is:

• Debit the receiver, credit the giver

• Debit what comes in, credit what goes out

• Debit all expenses, credit all incomes

• None of the above

Which of the following is not a subsidiary book?

• Purchase Book

• Cash Book

• Journal Proper

• Trial Balance

Which book is used to record all credit purchases of goods?

• Sales Book

• Purchase Return Book

• Purchase Book

• Cash Book

A Ledger is a book of:

• Original entry

• Final entry

• Adjustments

• Trial balance

The process of transferring journal entries to the ledger is called:

• Posting

• Journalising

• Balancing

• Reconciling

Which of the following is prepared to check arithmetical accuracy of ledger accounts?

• Trial Balance

• Cash Flow Statement

• Balance Sheet

• Profit and Loss Account