MCQ - Accounting Skills Test for Beginners MCQ 2 on Basic Accounting for Beginner or Students Beginner Level Skill Test 2 on Basic Accountingefinacademy@gmail.comMay 4, 2022Level - Beginner MCQ 2 on Accounting for Beginner and Students Level – Beginner Results - Well Done. Go for the next test 🙂 Oops! Refresh the understanding and re-take the test! #1. Book keeping is mainly concerned with which of the important process? Recording financial data relating to business operations Recording financial data relating to business operations Designing for systems recording, classifying and summarising recorded data Designing for systems recording, classifying and summarising recorded data All of the above All of the above Interpreting data for internal and external users Interpreting data for internal and external users Book Keeping is a process to record all the monetary transactions in the books of accounts in order to track and analyze the transactions that affect the business profitability analysis and its operations. #2. Which of the following will not be recorded in the books of account ? Sales of goods Sales of goods Quality of staff Quality of staff Payment of salary Payment of salary Purchase of goods Purchase of goods Sales/Purchase of goods and Salary payments are the transactions performed in monetary terms and hence must be recorded in the books. Quality of staff is non-monetary term and hence cannot be recorded in the books of accounts. #3. Which of the following is not an internal user of financial statements? Lenders Lenders Board of directors Board of directors Employees Employees Managers Managers Internal User means anyone who is part of business entity. Lenders are external parties to the business. #4. A person to whom money is owed by a firm against purchase of goods is known as ? Both Creditor and Debtor Both Creditor and Debtor Creditor Creditor Debtor Debtor None of these None of these Creditor is supposed to receive money from business against sales made to the firm. #5. Transactions are posted into General Ledger from which document/book? Vouchers Vouchers Journal book Journal book None of these None of these Bank statement Bank statement Based on the business transactions, a journal (voucher entry) is created and then posted into the journal book. From Journal book, General Ledger postings are made. In system based accounting. Journal Books are skipped sometimes or generated as summary/detail report of all the journal entries. #6. Which is the last step of accounting as a process of information? Communication of information Communication of information Recording the transaction Recording the transaction Preperation of financial statements Preperation of financial statements Analysis and interpretation of information Analysis and interpretation of information Recording, Preparation and Analysis are the intermediary steps in accounting process. Once these processes are completed, the results and summary can be communicated to the relevant stakeholders. #7. A liability arises because of which activity? Cash Transactions Cash Transactions Credit Transactions Credit Transactions None of these None of these Cash as well as Credit Transactions Cash as well as Credit Transactions A purchase that is settled in cash don’t create any liability rather decreases the current asset (Cash). Liability gets created in the books of accounts when purchases are made on credit. #8. A person who owes money to a firm is known as? Debtor Debtor Creditor Creditor Both Creditor and Debtor Both Creditor and Debtor None of these None of these Debtor is the person who is supposed to pay-back to the business entity against purchase of goods or services from the entity. #9. Which one of the following is not a Business Transaction? Purchased a laptop for personal use Purchased a laptop for personal use Paid salaries and wages amounted to Rs 1000 Paid salaries and wages amounted to Rs 1000 Purchase of goods for resale amounted to Rs 20000 Purchase of goods for resale amounted to Rs 20000 Paid rent for warehouse amounted to Rs 5000 Paid rent for warehouse amounted to Rs 5000 Business entity concept clearly distinguish any transaction that is not done for business. Personal transactions must be excluded from the business records, so as to have a true and fair view of business operations and performance. #10. The basic function of financial account is to ? None of these None of these Assist the management Assist the management Interpret financial data Interpret financial data Record all business transactions Record all business transactions Accounting is a service process that primarily record all the business transactions to track the business performance. Done, Relax and Evaluate Now