BASIC ACCOUNTING INTERVIEW SHORT QUESTIONS (1-10)

                  Basic Accounting Concepts

1    1.    ACCOUNTING DEFINITION :-

                                    “The art of recording, classifying and   summarizing in a significant     manner  and in terms of money, transactions and events which are, in part at least of a financial character and interpreting the results thereof”.

     2. Book Keeping:

          It is mainly concerned with recording of financial data relating to       the business operations in a significant and orderly manner.

3. BRANCHES OF ACCOUNTING:   

·        Financial Accounting

·        Management Accounting

4. CONCEPTS OF ACCOUNTING:

·        separate entity concept                                                       

·         going concern concept

·         money measurement concept                                             

·        cost concept

·         dual aspect concept                                                               

·         accounting period concept

·         periodic matching of costs and revenue concept          

·        realization concept.

5 Conventions of Accounting

·        conservatism 

·        full disclosure

·        consistency

·        materiality.

6. Systems of Book Keeping:

·        single entry system

·        double entry system

7. Systems of Accounting 

·        cash system accounting

·        mercantile system of accounting.

8. Principles of Accounting

·        a. Personal a/c :   Debit the receiver

Credit the giver

·        b. Real a/c           : Debit what comes in

 Credit what goes out

·        c. Nominal a/c    : Debit all expenses and losses    

                                          credit all gains and incomes

 9. Meaning of Journal:  Journal means chronological record of transactions.

10 Meaning of Ledger: 

                                        Ledger is a set of accounts. It contains all accounts of the business enterprise whether real, nominal, personal.