I.Com Part 1 Principles of Accounting chapter wise Short Question Preparation

Question # 1

What is meant by single entry system?

Ans 1: A system in which only aspect of a transaction is recorded and sometimes no aspects of a translation is called single entry system.

Question # 2

Write down the difference between the journal and ledger.

Ans 1: Journal : It is book of original entry accounting entries are recorded in journal in order by date.
Ans 2: Ledger; It record classified and summarized financial information from journals as debit and credits.There is no need of narration under each account in the ledger.

Question # 3

What is meant by book keeping errors?

Ans 1: These are the errors which may be made in the original documents viz,In the journal and in the ledger.

Question # 4

Define commercial bank.

Ans 1: An institution which accepts deposits ,make business loans and offer related services is called commercial bank.

Question # 5

Define book keeping.

Ans 1: Book keeping is the art of recording monetary transactions in the books of accounts in a proper manner.

Question # 6

What is profit and loss account?

Ans 1: The amount which is prepared to ascertain the net profit earned or net loss suffered by the business is called profit and loss account.

Question # 7

Define ledger.

Ans 1: Ledger records the effects of transaction according to their class,the process of recording in the ledger is called posting.

Question # 8

Define principle of error.

Ans 1: An error of principle is one where a transaction is entered without due regard to the fundamental principles of doubt entry, e,g wages paid for the installation of machinery wrongly debited to wags account.

Question # 9

Define uncollected cheque.

Ans 1: All those cheque which are deposited in the bank by the customer but the bank has not credited the amount of those cheques to the customer account are called uncredited cheque ,These cheque are also called collected cheque.

Question # 10

Define revenue receipt.

Ans 1: Money received on the sale of floating asset or goods is called revenue receipt such as Rs 20,000 received from sales of goods.

Question # 11

What is meant by retiring of bill?

Ans 1: Retirement of bills means to make payment of the bill before the due date or maturity provides he is allowed some rebate of discount of the unexpired period.This process is called retirement of the bill under rebate.

Question # 12

What is bank overdraft?

Ans 1: The amount which banks allows to a customer to withdraw in excess of his deposits for the sake of depositor good will is known as bank overdraft.

Question # 13

What is general journal?

Ans 1: It is a book of original to record in order of date and in detail the various transactions of a business concern,

Question # 14

Define credit purchases.

Ans 1: If goods are purchases from supplier and payment is not made to him immediately such purchases are called credit purchases.

Question # 15

What is Journalizing?

Ans 1: Act of recording a business transaction in General Journal; is called journalism.

Question # 16

Define depreciation.

Ans 1: It is the gradual decrease in the value of the fixed assets due to its ue in the business.

Question # 17

Define opening stock.

Ans 1: The stock of merchandise or goods help for resale purpose by a business unit at the beginning of the year is known as opening stock.

Question # 18

What are wasting assets?

Ans 1: Wasting assets are tangible fixed assets but are called wasting assets because of their nature which decrease in value with decrease of quantity.

Question # 19

Define bills of exchange.

Ans 1: A bill of exchange is an unconditional order in writing to pay on demand or at a future date,a certain sum in money to the bearer of the bill.

Question # 20

Define equation.

Ans 1: Accounting equation may be defined as A device by which the financial position of a business can be checked at a glance.

Ch. #	Test Name	Total Questions	PDF File	Launch Test
1	ICOM Part 1 Principles of Accounting Chapter 1 Short Question Preparation	35	Download PDF	Launch Test
2	ICOM Part 1 Principles of Accounting Chapter 2 Short Question Preparation	4	Download PDF	Launch Test
3	ICOM Part 1 Principles of Accounting Chapter 3 Short Question Preparation	6	Download PDF	Launch Test
4	ICOM Part 1 Principles of Accounting Chapter 4 Short Question Preparation	12	Download PDF	Launch Test
5	ICOM Part 1 Principles of Accounting Chapter 5 Short Question Preparation	8	Download PDF	Launch Test
6	ICOM Part 1 Principles of Accounting Chapter 6 Short Question Preparation	16	Download PDF	Launch Test
7	ICOM Part 1 Principles of Accounting Chapter 7 Short Question Preparation	7	Download PDF	Launch Test
8	ICOM Part 1 Principles of Accounting Chapter 8 Short Question Preparation	27	Download PDF	Launch Test
9	ICOM Part 1 Principles of Accounting Chapter 9 Short Question Preparation	32	Download PDF	Launch Test
10	ICOM Part 1 Principles of Accounting Chapter 10 Short Question Preparation	2	Download PDF	Launch Test
11	ICOM Part 1 Principles of Accounting Chapter 11 Short Question Preparation	8	Download PDF	Launch Test
12	ICOM Part 1 Principles of Accounting Chapter 12 Short Question Preparation	12	Download PDF	Launch Test
13	ICOM Part 1 Principles of Accounting Chapter 13 Short Question Preparation	11	Download PDF	Launch Test
14	ICOM Part 1 Principles of Accounting Chapter 14 Short Question Preparation	0	Download PDF	Launch Test

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