A to Z

Financial Accounting BBA (Semester-1)

V. Question bank
1. Definition OR Terms Book-keeping, Accenting, Debit, Credit, Transaction, Event,
Voucher, Invoice, Receipt, Revenue, Expenses, Assets, Liability, Debtors, Creditors,
Double Entry system, Account, Posting, Contra Entry, Capital Expenditure and
Receipt, Tally, Ledger. Journal,
2. What are the objectives of book-keeping or Accounting?
3. What are the advantages of book-keeping?
4. What information can a businessman obtain from his book-keeping? Or Briefly
explain the users and their need for accounting information, OR Who are the use of
accounting information?
5. What are the differences between book-keeping and accounting?
6. What are the branches of accounting?
7. How are accounts classified? OR Write notes on personal accounts, Short note on real
accounts. and Short note on nominal accounts.
8. What are the golden rules of Accounting? OR State the fundamental rules followed to
record the changes in variousaccounts.
9. Explain the utilities of a ledger.
10. Distinquish Journal with Ledger.
11. What is trading account? What are its uses? OR Explain the need of trading account.
12. What are the items appearing in the debit and credit side of trading account?
13. Write the difference between trial balance and balance sheet.
14. Explain the term Balance Sheet. Also explain the objectives of preparing Balance
sheet.
15. Draw the format of vertical balance sheet, Profit & Loss Account and Trading
Account.
16. What do you mean by Assets? Classify the assets with suitable examples.
17. Explain in brief cash basis of accounting and differentiate it with accrualbasis of
accounting.
18. What is double entry mechanism? Give its advantages.
19. Accounting equation remains intact under all circumstances Justifythe statement
with the help of example.
20. State the meaning of financial statements.
21. Explain in brief the various objectives of finanacial statements.
22. Distinguish between capital receipts and revenue receipts.
23. How is cost of goods sold calculated?
24. What is Trading Account? Why it is prepared?
25. How is Gross Profit calculated?
26. What is meant by Profit and Loss Account? Why it is prepared?
27. When does Profit and Loss Account show Net Profit?
28. Why do the totals of two sides of Trial Balance are equal ? Explain. OR Agreement
of Trial Balance is not the conclusive proof of the accuracy of accounts. Comment.
29. What is GAAP?
30. Examine the importance of the accrual concept.
31. Explain the difference between accrual concept and matching concept.
32. Why is the matching concept central to the determination of profit? the importance of
dual aspect concept in understanding the balance sheet.
33. Distinguish between expenses and payments.

Prof. Mahendra Patel

Year 2016-17

A to Z

Financial Accounting BBA (Semester-1)

34. Distinguish between incomes and receipts.
35. Why arent purchases of equipment shown in the income statement?
36. Why is credit sales shown in the income statement?
37. The Receipts and Payments Account is a summarized cashbook explains the
statement.
38. The Income and Expenditure Account is another name for the Profit and Loss
Account. Do you agree with this statement? Given reasons.
39. Enumerate the points of difference between Receipts and Payments Account and an
Income and Expenditure Account
40. Computerized Accounting system is suitable for large scale business units. Do you
agree? Justify your opinion. Or Give importance of Computerized accounting system
41. Briefly explain the features of Tally ERP 9.
42. List out the requirements for installing Tally.
43. Explain the steps to create a new company in Tally
44. What are the steps to be taken for altering an existing company?
45. List out the Tally screen components
46. List out the various fields available for ledger creation.
47. What do you mean by groups and pre-defined groups?
48. Explain the procedures involved in the duplication and cancellation of vouchers

Prof. Mahendra Patel

Year 2016-17