INTRODUCTION TO BK

Question 1

WHAT IS BOOK KEEPING

Answer 1

BOOK KEEPING IS RECORDING THE BUSINESS TRANSACTION IN A BOOK OF ACCOUNTS IN A SYSTEMATIC WAY

Question 2

WHAT IS MENT BY GOODS

Answer 2

Any commodity, article, or merchandise in which trader regularly deals or carries on trade is called goods

Question 3

WHAT IS DRAWINGS?

Answer 3

TOTAL AMOUNT OF GOODS AND SERVICES WITHDRAWN BY THE PROPRIETOR FROM THE BUSINESS FROM TIME TO TIME FOR SELF USE

Question 4

CAPITAL?

Answer 4

THE AMOUNT OF MONEY INVESTED BY THE PROPRIETOR INTO THE BUSINESS FROM TIME TO TIME IS CALLED CAPITAL

Question 5

GOODWILL?

Answer 5

MONEY VALUE OF BUSINESS REPUTATION EARNED BY THE BUSINESS OVER THE NUMBER OF YEARS

Question 6

Recording of business transactions.

Answer 6

BOOK KEEPING

Question 7

Amount invested in the business by the proprietor.

Answer 7

Capital

Question 8

A person to whom the amount is payable.

Answer 8

Creditor

Question 9

The exchange between two persons.

Answer 9

Transaction

Question 10

Excess of expenses over income.

Answer 10

LOSS

Question 11

A person whose assets are sufficient enough to meet business obligations.

Answer 11

Solvent

Question 12

Book-keeping is providing all required financial information to the businessman.

Answer 12

Decision Making

Question 13

Property of any description owned by Proprietor.

Answer 13

Assets

Question 14

Assets that remain in the business for only for short time and can be converted into cash very easily.

Answer 14

Current Assets

Question 15

Allowance is given on catalogue price of goods.

Answer 15

Trade Discount

Question 16

Surplus of income over expenses is

Answer 16

Profit

Question 17

In _____________ basis of accounting, actual cash receipts and actual cash payments are recorded.

Answer 17

Cash

Question 18

Amount which is not recoverable from customer is known as _____________

Answer 18

Bad Debts

Question 19

Accounts must be honestly prepared and they must disclose all material information is known as

Answer 19

Disclosure Concept

Question 20

_____________ means a reputation of a business valued in terms of money.

Answer 20

Goodwill

Question 21

A commodity in which a trader deals is known as _____________

Answer 21

Goods

Question 22

According to _____________ Cash flow statement is prepared and presented for the period for which the profit and loss account is prepared.

Answer 22

AS-3

Question 23

The immediate recognition of loss is supported by principle of _____________

Answer 23

Conservatism

Question 24

Brief explanation of an entry is called as _____________

Answer 24

Narration

Question 25

An act of exchange of things or services between the two parties is termed as _____________

Answer 25

Transaction

Question 26

Revenue arising as a result of business transactions is known as _____________

Answer 26

Income

Question 27

Excess of gross profit over operating expenses is _____________

Answer 27

Operating profit

Question 28

An expenditure which is basically revenue in nature but the benefit of which is not exhausted within one year is called as _____________

Answer 28

Deferred revenue expenditure

Question 29

The amount deducted by the seller from the list price of goods at the time of sale is _____________

Answer 29

Trade Discount

Question 30

A person to whom the business owes money for the goods or services is known as _____________

Answer 30

Creditor