Plus One Accountancy Chapter Wise Previous Questions Chapter 1 Introduction to Accounting

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 1 Introduction to Accounting

Question 1.
Find the odd one out. (March 2010)
a) Machinery
b) Land and building
c) Closing stock
d) Furniture
Answer:
c) Closing stock

Question 2.
“The primary objective of accounting is to provide information to facilitate business decisions”. Mention any four objectives of accounting. (March 2010)
Answer:
1) Maintenance of business records
2) Ascertainment of profit/loss
3) Ascertainment of financial position
4) Providing information to users

Question 3.
The major objectives of accounting include ascertaining the operating results of a business. Mention four advantages of accounting to business. (March 2010)
Answer:
The following are the important objectives of accounting.

• Keeping records of business transactions.
• Ascertainment of Profit or Loss.
• Ascertainment of the financial position of business enterprises.
• Providing meaningful information to different groups of people having an interest in the business.

a) Keeping of records of business transaction
The main purpose of accounting is to identify business transactions of financial nature and enter into appropriate books of accounts. The accounting records should be made properly and systematically, so that requisite information may be obtained at a glance.

b) Ascertainment of Profit or Loss
The result of business (Profit or Loss) is available from the statement prepared for ascertaining it, called the Profit and Loss Account.

c) Ascertainment of financial position
At the end of an accounting year, a position statement is known as the ‘Balance Sheet’ is prepared. The value of assets and liabilities are depicted in the Balance Sheet. The Balance sheet gives a true and fair view of the state of affairs of the concern.

d) Providing meaningful information to different groups of people having an interest in the business
Accounting records provide meaningful information to a different group of people having an interest in the business.

Question 4.
Define accounting and explain five objectives of accounting. (March 2010)
Answer:
According to American Institute of certified Public Accountants, “Accounting is the art of recording, classifing and summarizing in a significant manner and in terms of money, transations and events which are in part, at least, of a financial character and interpreting the results there of.”
The following are the important objectives of accounting.
a) Keeping of records of business transaction.
b) Ascertainment of Profit or Loss.
c) Ascertainment of financial position of business enterprises.
d) Providing meaningful information to different groups of people having interest in the business.

Question 5.
Business sold goods to Mujeeeb on credit. Mujeeb is the _________ of the business. (March 2011)
Answer:
Debtor

Question 6.
What represents the amount invested by the owner into the business? (March 2011)
a) Assets
b) Revenue
c) Capital
Answer:
c) Capital

Question 7.
If Mr. Kumar purchased from our business for Rs. 10,000, he is our creditor. (March 2011)
Answer:
False, Debtor

Question 8.
Assets that can be converted into cash with a year are called current assets. (March 2011)
Answer:
True

Question 9.
“The primary objective of accounting is to provide information to facilitate business decisions.” Mention any four objectives of accounting. (March 2011)
Answer:
a) Facilitate maintenance of business records
b) Ascertainment of profits or loss
c) Ascertainment of financial position
d) Providing information to users.

Question 10.
_________ are the internal users of an account. (March 2012)
Answer:
Owners

Question 11.
Fund based accounting is used by ________ (March 2012)
a) multinational companies
b) trading organizations
c) government organizations
d) manufacturing organizations
Answer:
c) government organizations

Question 12.
Fathima took an educational loan of Rs. 10,000 from SBI, Calicut. The relationship which exists between SBI and Fathima is ______ (March 2012)
a) Fathima is the debtor of SBI, Calicut
b) SBI, Calicut is the debtor of Fathima
c) Fathima is the creditor of SBI, Calicut
d) Fathima is the proprietor of SBI, Calicut
Answer:
a) Fathima is the debtor of SBI, Calicut

Question 13.
A student of XI commerce, after going through the topic, “Capital expenditure and revenue expenditure” has classified certain expenditure as given below. (March 2012)

Do you agree with the above classification? If not correct it.
Answer:
No, Capital expenditure

• Machinery purchased
• Installation charge on machinery

Revenue Expenditure

• Depreciation on machinery
• Rent paid
• Goods purchases

Question 14.
Identify the events not amenable to accounting treatment. (Say 2012)
a) Sale of goods
b) Salary paid
c) Directors are appointed
d) Rent received
Answer:
c) Directors are appointed

Question 15.
Find the odd one out. (Say 2012)
a) Manager
b) Bank
c) Government
Answer:
a) Manager

Question 16.
Minnu is working as an accountant in an organization and Chinnu is working as a book-keeper. Minnu argued that her work is much wider than that of Chinnu. Do you agree? Why? (Say 2012)
Answer:
Yes.

Question 17.
Complete the series based on the hint given: (March 2013)
Hint: Intangible asset – goodwill
a) Fictitious asset – ______
b) Liquid asset – _________
Answer:
a) Fictitious asset – Preliminery Expenses/Profit & Loss Debit balance.
b) Liquid asset – Cash/Bank/Debtors/Bill receivables.

Question 18.
Name any to internal users of accounting information of your choice. (Say 2012)
Answer:
Managers, Owners, Employees, Management

Question 19.
Mr. Ali is of the opinion that all transactions of a businessman are business transactions. Do you agree with him? Why? (Say 2012)
Answer:
No, Business transactions, which can be expressed in terms of money and have an impact on the assets and liabilities of the business.

Question 20.
The difference between what is owed and what is owed by a business is called ______ (March 2014)
a) assets
b) Liabilities
c) capital
d) profit
Answer:
c) capital

Question 21.
Under which one of the following can the asset of ‘Debtors’ be well placed? (March 2014)
a) Real asset
b) Fixed asset
c) Current asset
d) Human asset
Answer:
c) Current asset

Question 22.
Choose the appropriate answer from the bracket. (March 2014)
(Goods, Liabilities, Assets)
a) Things in which a business deals: __________
b) Things with which a business deals: __________
Answer:
a. Goods
b. Assets

Question 23.
Reliability is one of the qualitative features of accounting. Give two more such features. (March 2014)
Answer:
Relevance, Understandability, Timeliness, Comparability

Question 24.
In how many ways are assets classified? Mention these ways. (March 2014)
Answer:
Assets can be grouped under the following categories:

• Fixed Assets
• Current Assets
• Tangible Assets
• Intangible Assets
• Fictitious Assets
• Wasting Assets

Question 25.
Classify the following liabilities under appropriate heads. (March 2015)

1. Bills payable
2. Bank overdraft
3. Debentures
4. Creditors

Answer:

1. Bills payable – Current Liability
2. Bank overdraft – Current Liability
3. Debentures – Longterm Liability
4. Creditors – Current Liability

Question 26.
What do you mean by accounting? (March 2015)
Answer:
Accounting is an information system which receives data, inputs, processes the same, and gives its output in the form of information which is useful for decision making.

Question 27.
The creditors and bankers need qualitative accounting information for taking appropriate decisions. What qualitative features do they expect in accounting information? (March 2015)
Answer:
Reliability, Relevance, Understandability, comparability, and timeliness.

Question 28.
Write any three objectives of accounting. (March 2015)
Answer:
Objectives of Accounting

• Facilitate maintenance of business records
• Ascertainment of profit or loss
• Ascertainment of financial position
• Providing information to users.

Question 29.
Pick out the wrong pair. State the reason. (Say 2015)
a) Patent, Copyright
b) Stock, Debtors
c) Salary, Rent
d) Cash, Furniture
Answer:
d) Cash, furniture

Question 30.
Find the odd one and state the reason. (March 2016)
a) Debtors
b) Creditors
c) Cash at bank
d) Stock
Answer:
b) Creditors
All others are current assets, this is a current liability.

Question 31.
Which of the following is NOT a business transaction? (March 2016)
a) Bought motorcar for business Rs. 1,00,000
b) Paid employee’s salary Rs. 1,000
c) Paid sons’ fees from business Rs. 2,000
d) Paid sons’ fees from his personal account Rs. 2,000
Answer:
d) Paid sons’ fees from his personal account Rs.2,000

Question 32.
Saritha, dealing in stationery items, purchased an alamarah for 34,000 and also purchased stationery items like pen, pencil, paper, etc for Rs. 10,000. (March 2016)
a) Which of the above transactions is a capital expenditure?
b) Distinguish between capital expenditure and revenue expenditure.
Answer:
a) Purchase of Alamarah
b)

Question 33.
Things or properties of value are called _______ (Say 2016)
a) assets
b) liabilities
c) capital
d) revenue
Answer:
a) assets

Question 34.
Accounting means recording of _______ (March 2017)
a) economic transactions
b) economic events
c) both options a & b
d) neither options a & b
Answer:
c) both options A and B

Question 35.
Vinod took a loan of Rs. 1,00,000 from Canara Bank. Identify the debtor in the above transaction. (March 2017)
Answer:
Vinod – Debtor

Question 36.
Accounting possesses certain qualitative features. List them. (March 2017)
Answer:
Qualitative features of accounting are
a) Reliability
b) Relevance
c) Understandability
d) comparability

Question 37.
Classify the following assets under appropriate heads. (March 2017)
a) Cash
b) Machinery
c) Land
d) Stock
Answer:
Fixed Assets – Machinery
Current Assets – Cash

 Plus One Accountancy Chapter Wise Previous Questions