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Karnataka PUC I Introduction to Accounting & Recording Transactions — practice questions

Explore 45 free Introduction to Accounting & Recording Transactions questions in Karnataka PUC I Accountancy. Open each question or exercise to read its content, reference answers and available explanation.

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Introduction to Accounting & Recording Transactions questions and exercises with answers

Showing questions 1–30 of 45.

Accounting Standards in India are issued by theRead the answer and worked solution →Revenue is recognised when it is earned, not when cash is received. This is theRead the answer and worked solution →The accounting equation isRead the answer and worked solution →A business introduces ₹50,000 cash as capital. The effect on the accounting equation isRead the answer and worked solution →The book of original entry in which transactions are first recorded is theRead the answer and worked solution →Under the modern rules, an increase in a liability is recorded as aRead the answer and worked solution →The process of transferring journal entries to individual accounts is calledRead the answer and worked solution →A source document that serves as evidence of a transaction and basis for recording is aRead the answer and worked solution →Accounting is popularly called the what of business?Read the answer and worked solution →Which step of the accounting process comes first?Read the answer and worked solution →Which is the last step of accounting as a process of information?Read the answer and worked solution →Accounting records business events using which kind of unit?Read the answer and worked solution →Identified and measured events are recorded in which order?Read the answer and worked solution →The appointment of a new managing director is not entered in the books because it isRead the answer and worked solution →Payment of monthly rent to a landlord is which type of economic event?Read the answer and worked solution →Supply of raw material by the stores department to the manufacturing department isRead the answer and worked solution →Which of these is an internal user of accounting information?Read the answer and worked solution →A bank deciding whether to grant a loan is mainly interested in the firm'sRead the answer and worked solution →Owners study financial reports mainly to learn whether they getRead the answer and worked solution →Creditors look particularly at liquidity, which is the firm's ability toRead the answer and worked solution →Which user group would be most interested in a firm's VAT and other tax liabilities?Read the answer and worked solution →Customers want accounting information mainly about the firm'sRead the answer and worked solution →Which group needs information on the stability and profitability of a firm for pay awards?Read the answer and worked solution →Competitors use a rival's accounts mainly forRead the answer and worked solution →Which branch of accounting ascertains the cost of products and helps fix their prices?Read the answer and worked solution →Sales forecasts and manpower needs are provided by which branch of accounting?Read the answer and worked solution →Which is a newer area of accounting that has gained prominence?Read the answer and worked solution →Information that users can depend on, free from error and bias, is calledRead the answer and worked solution →Which feature helps users predict outcomes and confirm earlier evaluations?Read the answer and worked solution →A clearly presented report that users can interpret as intended showsRead the answer and worked solution →

Worked practice questions

Accounting Standards in India are issued by the

  1. RBI
  2. ICAI
  3. Ministry of Finance
  4. SEBI
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Correct answer: B. ICAI

The Institute of Chartered Accountants of India (ICAI) issues Accounting Standards to bring uniformity to accounting practice.

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Revenue is recognised when it is earned, not when cash is received. This is the

  1. conservatism
  2. realisation of cash
  3. accrual concept
  4. cash basis
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Correct answer: C. accrual concept

The accrual concept recognises revenue when earned and expenses when incurred, regardless of cash flow timing.

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The accounting equation is

  1. Assets = Liabilities + Capital
  2. Assets + Capital = Liabilities
  3. Capital = Assets + Liabilities
  4. Assets = Capital − Liabilities
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Correct answer: A. Assets = Liabilities + Capital

Assets = Liabilities + Capital — the foundation of the dual-aspect (double-entry) system.

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