Mostly Asked Accounting Questions with Answers

 Mostly Asked Accounting Questions with Answers

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Q1:Single entry system is also known as?

The single entry system is also known as Incomplete records
The single-entry accounting system is a method of bookkeeping relying on a one-sided accounting entry to maintain financial information

Q2:Surplus capital method is also known as?

The surplus capital method is also known as Quotient Method.

Q3:Under single entry system bad debts are recorded on the?

Under a single entry system, bad debts are recorded on the asset side of the balance sheet.

Q4:Single entry system is nothing but maintaining records?

The single entry system maintains the personal accounts of all the creditors and debtors to determine the number of credit purchases and sales during a given period.

Q5: Maximum loss method is also known as?

The maximum loss method is also known as piecemeal distribution.

Q6:In piecemeal distribution which expenses are paid first?

In piecemeal distribution 
First all outside liabilities are paid and then insiders are paid.

Q7:Under single entry system discount allowed to debtors is recorded on the?

Under single entry system discount allowed to debtors is recorded from the trade creditors

Q8: Under piecemeal distribution, the statement is prepared?

Under piecemeal distribution, the statement is prepared to show how cash is being utilized. For expenses, the Realisation Account will be debited and Cash Account credited.

Q9: The dual aspect concept is expressed in terms of the fundamental accounting equation is?

The dual aspect concept is expressed in terms of the fundamental accounting equation is Capital + Liabilities = Assets.


Q10: Under piecemeal distribution assets are realized?

Under piecemeal distribution, Assets will be realized gradually over time.

Q11: Piecemeal distribution of cash mean?

Piecemeal distribution of cash refers to the distribution of cash in parts/installments. This happens in the case of the dissolution of a partnership firm. In case of dissolution, the firm has to be closed. For this, all its assets are sold and from the amount So realized it’s liabilities have to be paid.

Q12: Disadvantages of single entry system are?

1. Unscientific And Unsystematic
2. Incomplete System
3. Lack Of Arithmetical Accuracy
4. Does Not Reflect True Profit Or Loss
5. Does Not Reflect True Financial Position
6. Frauds And Errors
7. Unacceptable For Tax Purpose

Q13: The convention does not prohibit changes?

The convention of does not prohibit changes is called the Convention of Consistency.

Q14: …it is very difficult to detect under a single entry system?

Fraud is very difficult to detect under a single entry system

Q15: Total debtors account gives the information about?

The total debtor’s account gives information about the total liabilities.

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