Financial Accounting

APPENDIX IV

IMPORTANT THEORETICAL QUESTIONS BANK

Chapter 1: Introduction to Accounting.

1. Define Accounting. In what way is accounting information useful for (i)Investors (ii)Managers (iii) Creditors and (iv) employees of a business?
2. 1. Distinguish between Cash Basis of Accounting and Accrual basis of Accounting.
   2. Write a short note on Hybrid basis of accounting.
3. Define in one sentence each:(i) Expense (ii) Equity (iii) Liability (iv) Asset (v)Income.
4. Write a short note on accounting concept of income and economic concept of income.
5. 1. Explain the relationship of accounting with Economics, Statistics, Mathematics and Management.
   2. Write a short note on ‘Role of Accountant in the Society’.

Chapter 2: Generally Accepted Accounting Principles.