Accountancy

Question 1

What is accounting?

Answer 1

Systematic recording, classification, and reporting of financial transactions.

Question 2

What is GAAP?

Answer 2

Generally Accepted Accounting Principles.

Question 3

What is IFRS?

Answer 3

International Financial Reporting Standards.

Question 4

What is the accounting equation?

Answer 4

Assets = Liabilities + Owner’s Equity

Question 5

What are the 3 main financial statements?

Answer 5

Balance Sheet, Income Statement, Cash Flow Statement.

Question 6

What is Debit?

Answer 6

Left side of accounting entry, increases assets/expenses.

Question 7

What is credit?

Answer 7

Right side of accounting entry, increases liabilities/revenue.

Question 8

What is cash flow statement?

Answer 8

Summary of inflows/outflows of cash.

Question 9

What is journal entry?

Answer 9

Recording of transactions in chronological order.

Question 10

What is ledger?

Answer 10

Collection of accounts with debit/credit balances.

Question 11

What is trial balance?

Answer 11

List of accounts with debit/credit balances.

Question 12

What is balance sheet?

Answer 12

Snapshot of company’s financial position.

Question 13

What is income statement?

Answer 13

Summary of revenues and expenses.

Question 14

What is asset?

Answer 14

Resource with economic value.

Question 15

What is Liability?

Answer 15

Debt or obligation

Question 16

What is Retained Earnings?

Answer 16

Accumulated Profits

Question 17

What is Owner’s Equity?

Answer 17

Owner’s claim on assets.

Question 18

What is Revenue?

Answer 18

Income from business operations.

Question 19

What is Expense?

Answer 19

Cost of business operations.

Question 20

What is Cost Accounting?

Answer 20

Determining product/service costs.

Question 21

What is Net Income

Answer 21

Revenue - Expenses

Question 22

What is Purchase

Answer 22

Acquisition of Assets

Question 23

What is Sale?

Answer 23

Transfer of assets.

Question 24

What is Depreciation?

Answer 24

Allocation of asset cost.

Question 25

What is Prepaid Expense

Answer 25

Payment before expense incurred.

Question 26

What is Amortisation?

Answer 26

Allocation of intangible asset cost.

Question 27

What is Accrual?

Answer 27

Recognition of revenue/expense.

Question 28

What is Accounts Payable?

Answer 28

Amounts owed to suppliers.

Question 29

What is Unearned Revenue

Answer 29

Payment before revenue earned.

Question 30

What is Unearned Revenue

Answer 30

Payment before revenue earned.

Question 31

What is Inventory?

Answer 31

Goods for sale.

Question 32

What is Managerial Accounting?

Answer 32

Providing info for decision-making.

Question 33

What is Standard Costing?

Answer 33

Assigning predetermined costs.

Question 34

What is Job Order Costing?

Answer 34

Tracking costs for specific jobs.

Question 35

What is Process Costing?

Answer 35

Tracking costs for mass production.

Question 36

What is ABC (Activity-Based Costing)?

Answer 36

Assigning costs to activities.

Question 37

What is Break-Even Analysis?

Answer 37

Determining profit/loss threshold.

Question 38

What is Budgeting?

Answer 38

Planning and controlling resources.

Question 39

What is Variance Analysis?

Answer 39

Analyzing differences between actual/budgeted.

Question 40

What is Lean Accounting?

Answer 40

Eliminating waste in accounting processes

Question 41

What is Tax Accounting?

Answer 41

Compliance with tax laws

Question 42

What is Income Tax?

Answer 42

Tax on individual/business income.

Question 43

What is Sales Tax?

Answer 43

Tax on sales transactions.

Question 44

What is Auditing?

Answer 44

Examining financial statements.

Question 45

What is Value-Added Tax (VAT)?

Answer 45

Tax on value added.

Question 46

What is Accounting Information System (AIS)?

Answer 46

Technology for accounting processes.

Question 47

What is Financial Reporting?

Answer 47

Communicating financial info.

Question 48

What is Accounting Ethics?

Answer 48

Professional conduct and integrity.

Question 49

What is Internal Control?

Answer 49

Procedures for financial accuracy.

Question 50

What is Professional Certification?

Answer 50

Designations like CPA, CMA, CFA.